Spark Capital Raises $450 Million In Fourth Fund

Posted Feb 26, 2013

Spark Capital is a Boston, Massachusetts based venture capital company that has raised their fourth round of funding earlier this week.  The company has raised $450 million, which is the company’s largest investment fund thus far.  

Spark raised $360 million in their last fund.  Spark Capital partner Bijan Sabet said that this fund was oversubscribed.  Spark Capital was founded in 2005 by Todd Dagres, Santo Politi and Paul Conway.  The company has invested in companies like Foursquare, OMGPOP, Twitter, and Tumblr.  They typically invest in companies at the early stage at a range of between $250,000 – $25 million in late-stage financing.  In 2005, the company raised around $260 million initially.

?We like supporting companies throughout their life,? stated Sabet. ?We want to support our companies properly.?  He said that the larger fund will give the company more flexibility to invest in early and later stages if necessary.  Spark spends more time with companies in New York and San Francisco.  Around 75% of the company’s investments are at early-stage rounds.  Spark will also start hiring an an associate level.  The company will continue to invest in companies in the education, healthcare, and financial services sector through this fund.