Silicon Valley-based Sapphire Ventures, which invests in both startups and other venture capital funds, on Wednesday announced that it has raised $1 billion for its latest fund.
All of the money comes from German software company SAP AG
, from which Sapphire spun out as an independent entity back in 2011.
A bit over half of the capital will be used for direct investments, with Sapphire focusing on Series B through pre-IPO rounds in technology startups. The remainder will be used to invest in other VC funds—via a separate, more “evergreen” structure—with a particular focus on early-stage and geographically-focused platforms.
“Our investment strategy is to focus on expansion and later-stage companies, but we wanted more exposure to venture across all stages and a broader footprint without opening offices all over the world,” says Nino Marakovic, CEO and managing director of Sapphire Ventures. “So that’s why we effectively outsource that to best-of-breed early-stage partners who might have specific geographic or domain expertise.”
Marakovic adds that Sapphire had originally intended to bring in non-SAP investors since the original spin-out, but the software giant “is always good for the whole thing.”
Past portfolio companies have included Apigee (just acquired by Google), Box
, and Square
. Its prior fund came in at just over $900 million ($651 million of which was for direct investments).