By Dan Primack
June 6, 2012

FORTUNE — Madrona Venture Group, a Seattle-based VC firm known for its early investment in Amazon (AMZN), today announced that it has closed its fifth fund with $300 million in capital commitments. It’s particularly notable because Madrona’s limited partners include The Kauffman Foundation – authors of a recent report that emphasized the value of smaller VC fund sizes and expressed a demand (or at least very strong desire) for greater transparency into things like underlying fund economics.

So I grabbed a cup of coffee last week with Madrona managing director Matt McIlwain, who was in town for his Harvard Business School reunion (quick note: never try to park at HBS during reunion weekend because the rent-a-cops will make your life miserable). The fund size issue wasn’t a big deal for Madrona — $300m was a small step up from its $250m fourth fund – and the firm was willing to comply with most of Kauffman’s requests.

“No one had ever asked us about fund economics before, but each of our partners has the same carry,” McIlwain said. “Plus, we also have a good deal of our personal wealth tied up in the funds through co-investment, which is important to Kauffman.”

Expect Madrona to begin investing its new cash in a couple of months, as it still has enough dry powder to fund two or three new deals. The firm’s current portfolio includes such companies as Cheezburger, Redfin and WildTangent.

“Only a select few venture firms can profess strong historic returns while resisting the enormous temptation to raise funds that are too big to succeed,” said . “The investment staff at the Kauffman Foundation believes Madrona is one of only a small number of venture capital firms situated to identify and guide early stage companies while helping to make real the cloud.”

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