Boston venture firm Battery Ventures announced Tuesday that it has raised $1.25 billion for two new funds, suggesting investors remain highly optimistic about technology despite high valuations for startups and a dearth of companies going public.
One fund, at $800 million, will be used to back traditional startups and other young companies; the second fund, at $450 million, will be used to make larger investments in more mature, growing companies.
It’s a strategy the 35-year-old investment firm has followed for years, backing promising technology companies regardless of the stage of their development. Battery has invested in companies including Wayfair, Akamai, Dollar Shave Club, and Groupon.
Neeraj Agrawal, a Boston-based general partner at the firm, said it doesn’t hurt to have a long track record in the business, noting that this is Battery’s 12th fund.
Just two years ago, Battery raised nearly $1 billion for two funds, a $650 million round for traditional venture deals, and $300 million to invest in more established companies. The company has offices in Boston, California, Israel, and London.
The announcement comes during a turbulent stretch of days for publicly traded companies on Wall Street, though the money-raising effort has been in the works since the fall.
The venture capital market has been seeing steady interest in recent years, with funds like the Silicon Valley-based New Enterprise Associates’ record $3.3 billion haul announced last year.
In 2017, venture investors raised more than $30 billion for more than 200 funds, according to the data provider PitchBook, the fourth straight year of breaching such a high dollar threshold.
The announcement from Battery is the largest in a string of major fund-raising totals for the Boston area. Flagship Pioneering announced in December that it had taken in $618 million in capital commitments, for instance, and Third Rock Ventures said in 2016 that it raised $616 million.
General Catalyst is also raising a massive fund, looking for $1 billion for its latest investment vehicle, the Wall Street Journal reported.
The large numbers can help investors keep pace in a market where major technology companies are delaying going public for years, creating opportunities for private funds to buy in at later stages.Andy Rosen can be reached at email@example.com.