CRV, a greater than 50-year-old enterprise agency, is returning to traders $275 million from its $500 million Choose fund, which backs later-stage rounds of current portfolio firms, the New York Occasions reported.
The agency is without doubt one of the first Silicon Valley outfits to return dedicated capital to traders. (We reported yesterday that India’s largest enterprise investor, Peak XV, is slashing the dimensions of a handful of funds.)
CRV companions mentioned it realized that investing in follow-on rounds of lots of its firms would decrease its total returns.
The agency raised the Choose fund together with a $1 billion fund for early-stage startups in 2022. CRV mentioned its subsequent early-stage fund might be smaller and it doesn’t plan to lift one other Choose fund.
This isn’t the primary time CRV has decreased its fund dimension. In 2002, after the dot-com bubble burst, it reduce a fund from $1.2 billion to $450 million. Different corporations to slash their fund sizes in that period included Kleiner Perkins, Accel, and Redpoint Ventures.
