Bessemer Venture Partners, a US-based investment group, has raised a $350 million annex fund to supplement BVP VII, which it closed in June 2007. BVP VII raised close to $1.1 billion, of which, the venture firm allocated $350 million to investments in India alone.
Annex funds are raised to provide an extra pool of money to supplement the original funds and are used for follow-on investments in portfolio companies. Bessemer has said in a release that it will target innovative, high-growth companies around the world with new capital.
Kleiner Perkins Caulfield & Byers (KPCB), another blue chip venture capital firm, is also raising annex funds for two of its funds. It has opened its $700 million fund XIII, and a $500 million Green Growth fund for additional committments from new investors.
“This supplement to our BVP VII fund will ensure that we can take advantage of future investment opportunities and that the companies within the Bessemer portfolio have continued access to capital,” said Ed Colloton, Chief Operating Officer of Bessemer Venture Partners.
Bessemer has an office in Mumbai in India, and has invested in 21 companies here since 2004. It announced formation of India advisory group last year with a 14 member team to be headed by by Sridar Iyengar, former Chairman and CEO of KPMG India.
Bessemer has invested in later stage and listed companies in India, and has stayed away from early stage companies. It’s investments in India include Shriram EPC, Motilal Oswal, Onmobile, Deccan Chronicle Holdings and Sarover Hotels.