Bain Capital Ventures Secures $1.9 Billion for Tech Investment Funds

(Bloomberg). Bain Capital Ventures is the venture arm for the private equity giant. It has raised $1.9 million across two new venture capital funds, which are aimed at startups of all sizes.

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The funds, which set a new record for Bain Capital’s 20-year-old venture capital business, will target investments in fintech, infrastructure, apps and commerce technology, BCV said in a statement Tuesday. This raise surpasses the $1.3billion BCV announced in May 2021 in order to invest in companies at an earlier stage.

Last year, the firm launched a fund of $560 million that focuses exclusively on crypto-related companies.

“Entrepreneurs want to build alongside investors who’ve done so successfully, and our team of operators, builders and experienced investors delivers on that promise,” BCV Partner Enrique Salem said in a statement.

This is a notable achievement in an industry that saw its growth slow in 2022. Globally, venture capital investments fell last year. VCs were more cautious in the face of public market turmoil.

Bain’s new funds were over-subscribed and will invest in companies of all stages from seed to growth, BCV said. According to the company, the venture group has been growing its investment teams and recruiting talent from other companies.

In an interview with Bloomberg Television, Matt Harris, BCV partner, stated that the group will focus on startups that support other businesses rather than consumer facing technology.

Harris stated that the tech industry is showing momentum despite the market downturn. “I think technology is moving very quickly,” Harris said. “What we found is that investors are still very interested, and this may be, in fact, a buying opportunity.”

He said that while about 70% of the firm’s investments have been in the US, BCV was increasingly interested in Europe and the UK. Harris stated that investors will continue to monitor the opportunities for generative artificial intelligence (an area of high interest for both technology executives and investors). The partner described recent AI tools as “strikingly useful” and emphasized the firm’s investments in AI over the last decade.

“I have no doubt things will get overheated in AI and there will be articles in nine months about the letdown and unfilled promise,” Harris said, “but we think the promise quite durable as it relates to AI.”

Caroline Hyde provided assistance.

(Additional executive comments beginning in the seventh paragraph.

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