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Lightspeed Venture Partners Looks to Make $1.8B Fund

The VC firm is looking to raise $1.8 billion for Lightspeed Venture Partners Select III, according to a regulatory filing.

Lightspeed Venture Partners, after some exits in unicorn companies AppDynamics, Mulesoft and Snapchat last year, is looking to raise $1.8 billion for Lightspeed Venture Partners Select III, according to a regulatory filing. In 2016, the firm raised over $1.2 billion for two funds, including $715 million for its eleventh early-stage fund and $500 million for Lightspeed Venture Partners Select II. The Select Fund was to invest in follow-on rounds mostly in existing Lightspeed portfolio companies.

According to PE Hub, there is no filing specifically for a Fund XII at present. However the latest Select Fund III filing references the $1.8 billion target to include expected capital commitments to Lightspeed Venture Partners XII and Lightspeed Venture Partners Select III, showing the firm is aiming to raise $1.8 billion for a new early stage fund as well as its third select vehicle.

Lightspeed Venture Partners has invested in direct and cross-border Indian companies since 2004, and has an Indian advisory team with offices in New Delhi and Bengaluru. They invest across several stages and sectors in India, including technology-led businesses as well as non-technology opportunities in sectors such as advertising and media, business services, financial services, healthcare, education and retail. They raised their maiden India fund of $135 million in 2015 and was reported to be the first investor from Silicon Valley to raise a dedicated fund for India after 2008. Some of Lightspeed’s notable Indian investments include Byju’s, Oyo Rooms, Craftsvilla, Udaan, Darwinbox, FastFox, RedCarpet and ShareChat.

For about two decades, Lightspeed Partners have backed over 250 entrepreneurs that have pioneered and led new markets including, AppDynamics, DataStax, Fusion-io, Giphy, Grubhub, The Honest Company, MuleSoft, Nest, Nicira, Nimble Storage, Nutanix, Riverbed, Snapchat, SolarEdge, Stitch Fix, Tintri and XtremIO.

The Lightspeed strategy is to be the early lead institutional investor in startups with high growth potential in markets capable of supporting the creation of large, valuable enterprises. Lightspeed currently manages over $4 billion of committed capital and is headquartered in California.

Lightspeed was founded by Chris Schaepe, Barry Eggers, Peter Nieh and Ravi Mhatre. In an article Mhatre gives his predictions for what enterprises will create the most buzz in 2018:

1. Hybrid cloud, AI and big data – “The emergence of hybrid clouds will help two other huge trends continue to gain steam in 2018: Artificial Intelligence and Big Data. Organizations that figure out how to harness both their own data and the enormous volume of external data will be the big winners. The ability to run big data platforms on your own hybrid cloud infrastructure is the key to controlling the data, instead of the data controlling you.”

2. Cryptocurrency and blockchain – “It would be foolish to predict how high it could go or how rapidly it might fall. But the most important part of Bitcoin is the underlying blockchain technology. The idea that you could have a common digital stored value that is global, transcends borders, and is independent of any nation state is truly revolutionary. In a ubiquitously connected world, that is truly the killer app.”

3. Security solutions – “From a venture standpoint, security has been a white-hot area of investment, similar in a way to Bitcoin. There’s an overabundance of capital chasing opportunities in cyber security.”

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