Venture Capital Journal
Growth-stage investor Lead Edge Capital raises $950m
October 14, 2020
By Alistair Goldfisher
New York-based Lead Edge Capital, which invests in software and internet start-ups, announced it’s raised $950 million for its fifth and largest fund. Lead Edge Capital V was oversubscribed and received commitments from more than 500 existing and new LPs.
Source: Press Release
Lead Edge Capital Raises $950 Million
The firm’s fifth fund brings total capital raised since inception to over $3 billion for continued focus on software, internet, consumer, and tech-enabled services investing
NEW YORK and SANTA BARBARA—October 14, 2020— Lead Edge Capital (“LEC” or the “Firm”), a technology focused growth stage investment fund, today announced the closing of Lead Edge Capital V, LP (“Fund V”). Fund V was oversubscribed and closed at its hard cap, with $950 million of commitments from over 500 existing and new limited partners. The addition of Fund V brings the Firm’s total capital raised since inception to over $3 billion.
Lead Edge Capital was founded in 2009 and invests in growth-stage software, internet, consumer, and tech-enabled service businesses globally. LEC will target making equity investments of between $20 million and $150 million per portfolio company from Fund V.
Today’s news comes on the heels of an active year for LEC — in the past twelve months, the Firm has made several new investments, including: Azul Systems, Bumble, Copado, Essential Accessibility, Grafana Labs, Guild Education, Hinge Health, Knock, Talkdesk and Workhuman. Additionally, during this year, multiple LEC portfolio companies will achieve liquidity events, including Asana (Direct Listing on NYSE), Signal Sciences ($775M acquisition by Fastly) and ANT Group (anticipated IPO).
LEC takes an innovative approach to value added investing through its Limited Partner (LP) investor base. This LP network consists of more than 500 accomplished executives and entrepreneurs who have built, run, and invested in some of the world’s most successful companies. Lead Edge’s LPs leverage their extended networks and deep knowledge bases to assist portfolio companies throughout the investment lifecycle. Limited Partners come from companies including Charles Schwab, Capital One, Disney, NetSuite, eBay, Microsoft, Xerox, Unilever, Cisco, Saks, Autodesk, Intuit, ESPN, and many more. Over the past year, the Lead Edge team and its LPs have facilitated more than 500 introductions to portfolio companies.
“The leadership teams of our portfolio companies have shown tremendous resilience and resourcefulness, despite unprecedented circumstances around the world,” said Mitchell Green, Founder and Managing Partner of Lead Edge Capital. “Going forward, our strategy at Lead Edge Capital will continue to be the same as it has been for the past 10 years. Our team and network of investors act as an extension of our portfolio companies. We are honored to have the continued support of our stellar LPs and look forward to continued collaboration for years to come.”
“Lead Edge Capital prides itself on being a dynamic supporter of portfolio companies,” said Lorrie Norrington, Operating Partner at Lead Edge Capital. “Whether it’s adding value to a portfolio company by introducing them to a prospective customer, connecting them with a key hire or identifying potential Board Directors, Lead Edge will always find a way to help.”
About Lead Edge Capital:
Lead Edge Capital is a growth stage investment fund with over $3 billion of capital raised since inception, and portfolio companies across the internet, software, consumer, and tech-enabled services sectors – including Alibaba Group, Asana, Bazaarvoice, Duo Security, Signal Sciences, Spotify, Toast, and TransferWise. Lead Edge Capital offers its entrepreneurs flexible capital and extensive domain expertise via its robust Limited Partner Network, a global advisory group of leading executives, entrepreneurs, and dealmakers who have built and run some of the world’s most successful companies. Lead Edge Capital leverages its LPs to connect companies with the customers, partners, talent, and advisors needed to accelerate success. Lead Edge Capital was founded in 2009 and has offices in New York City and Southern California.