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Morgenthaler closes fund
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August 6, 2001: 2:23 p.m. ET
Company's seventh fund, at $850 million, is Morgenthaler's biggest ever
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NEW YORK (CNNfn) - Venture capital firm Morgenthaler Ventures said Monday that, in spite of the slowing economy, it closed its seventh fund with $850 million. The amount exceeded the $700 million originally targeted by the firm for its Morgenthaler VII fund.
"This new fund will enable us to actively support our existing portfolio companies while aggressively seeking out new investments," said Bob Pavey, a general partner at Morgenthaler.
The firm will use 70 percent of the new fund, Morgenthaler's largest ever, for venture capital investment and 30 percent for buyouts.
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This new fund will enable us to actively support our existing portfolio companies while aggressively seeking out new investments.
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Bob Pavey, general partner at Morgenthaler Ventures |
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Morgenthaler's venture group has consistently ranked as a leading investor in communications enterprises. Over the past year and a half, the firm has made 20 investments in the communications sector with an emphasis on optical components and systems.
Pavey added the firm expects to increase its investments in software and health-care companies.
"We are seeing a lot more quality software opportunities as entrepreneurs abandon the unproven software services market and return to more tried-and-true enterprise software business models," said Pavey.
Pavey said he expects the new fund to invest between $10 million and $40 million total in each company, with an average investment size of $20 million.
Morgenthaler closed its last fund, Morgenthaler VI, in April of 2000 with a total of $570 million. 
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Morgenthaler
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