Venture firm CRV raises $750M, downsizing after returning capital to investors

CRV, a venture capital firm with a rich history spanning 55 years, has successfully raised $750 million for its twentieth flagship fund, announced on Friday. This latest fund marks a shift in strategy, being notably smaller than the $1 billion fund the firm closed in late 2022. In that previous round, CRV also introduced a $500 million Select fund aimed at supporting late-stage investments in its existing portfolio. However, the firm has opted not to pursue another late-stage fund this time. Last year, during discussions with The New York Times, CRV revealed it was returning $275 million from the $500 million Select fund to its investors, citing concerns that follow-on investments could dilute their overall returns. Despite the reduced size of the new fund, CRV's limited partners demonstrated strong support, enabling the firm to reach its $750 million goal in a remarkable four weeks, with demand exceeding the amount raised. The new fund will primarily focus on seed and Series A investments, targeting companies in consumer sectors and developer tools. CRV has a notable track record, having led seed funding for DoorDash and Series A investments for both Mercury and Vercel, the latter of which is valued at $3.25 billion. Since its inception in 1970, CRV has invested in over 750 startups, with around 80 achieving public company status. Recent additions to its investment portfolio include CodeRabbit, an AI code review platform, and Outtake, a cybersecurity company leveraging artificial intelligence.