Section Partners, a Palo Alto, Calif.-based growth-stage venture capital firm, closed two additional funds, totalling $245m.
Section Capital IV, LP, and Section Ventures, LP, received commitments from Section Partners’ longstanding limited partners and several new investors, including two prominent pension funds. The firm will use the increased capital base to expand its business providing capital to venture-backed companies and personal financing solutions to founders and other shareholders.
Section Capital IV, LP and a parallel co-investment fund, which closed on commitments of $213m, primarily makes investments in structured transactions with individual shareholders of late stage, venture-backed companies and has completed 64 transactions with stockholders of 19 companies since inception. To a limited extent, Fund IV also makes direct equity investments in venture-backed companies through both primary and secondary transactions.
Section Ventures is a new strategy that complements Fund IV’s direct equity investment activity. The Venture Fund has commitments of $32m and exposure to 11 companies to date.
Founded in 2014 by Dave Crowder*, Section Partners now manages five funds with committed capital in excess of $365m and has completed transactions with shareholders of over 60 companies since inception in 2014. Additionally, over half of the capital invested by the Funds to date has been deployed through transactions with founders, CEOs and CFOs. Funds managed by Section Partners have transacted with stockholders of 25 companies that have completed liquidity events, including Airbnb, Box, CrowdStrike, DocuSign, GitHub, Lending Club, MongoDB, One Medical, Palantir, Pinterest, Pivotal, Proterra, Uber, Upwork and Zuora.
* Crowder has over 25 years of Silicon Valley experience in venture capital and technology investment banking, including as Co-Founder and Co-Managing Partner of Thomas Weisel Venture Partners and as a technology investment banker at Thomas Weisel Partners and Montgomery Securities. Since inception, the team has worked closely with venture-backed companies to support the personal financing needs of company founders, executives, and key employees through the use of proprietary transaction structures.
FinSMEs
22/09/2021