Enterprise agency CRV returns $275 million citing overvaluation of mature startups
CRV, a greater than 50-year-old enterprise agency, is returning to buyers $275 million from its $500 million Choose fund, which backs later-stage rounds of current portfolio firms, the New York Times reported.
The agency is without doubt one of the first established Silicon Valley outfits to return dedicated capital to buyers. (We reported yesterday that India’s largest enterprise investor Peak XV had slashed its $2.85 billion fund by $465 million.)
CRV companions mentioned they realized that investing in follow-on rounds of lots of its firms would decrease the agency’s general returns. At present costs, these startups would want to finally be price about $10 billion, and there aren’t many current firms that might attain that dimension, mentioned CRV associate Saar Gur.
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 will probably be smaller and it doesn’t plan to lift one other Choose fund.
This isn’t the primary time CRV has diminished its fund dimension. In 2002, shortly after the dot-com bubble burst, the agency lower its fund from $1.2 billion to $450 million. Different companies to slash their fund sizes in that period included Kleiner Perkins, Accel, and Redpoint Ventures.