CRV Announces $750 Million Fundraising Reduction, Returns Capital to Investors: Strategic Downsizing Initiative

In an announcement made on Friday, CRV has secured $750 million toward the launch of its twentieth flagship fund. This new venture capital fund marks a strategic step forward in the firm’s continued growth and commitment to investing in innovative startups.

While the new fund is smaller than the $1 billion early-stage fund CRV closed in late 2022, it represents a significant milestone in the firm’s evolution. In addition to this flagship fund, CRV also announced a $500 million second Select fund last year, a capital pool dedicated to backing late-stage rounds of existing portfolio companies. However, in light of recent decisions, CRV will not be raising another late-stage vehicle due to the potential impact on overall returns from follow-on rounds for many of its companies.

The enthusiasm from CRV’s limited partners was palpable during the fundraising process, with the entire $750 million raised in just four weeks. Demand for the fund exceeded expectations, indicating a strong confidence in CRV’s investment strategies and track record.

The funds raised will be allocated to invest in seed and Series A startups, with a focus on consumer and devtools companies. CRV has a distinguished history of successful investments, having backed over 750 startups since its founding in 1970, with 80 of them eventually going public. Notable investments include leading DoorDash’s seed financing and the Series A rounds for Mercury and Vercel, a cloud platform for web developers valued at $3.25 billion.

More recently, CRV has added CodeRabbit, a startup focused on AI code review, and Outtake, a company leveraging AI for cybersecurity, to its portfolio of investments. As CRV moves forward with this new fund, it remains dedicated to identifying and supporting the most promising startups in the consumer and devtools sectors.