Meritech Capital Raises $800 Million For Seventh Fund

By Amit Chowdhry ● June 4, 2020
  • Venture capital firm Meritech Capital Partners LP has raised $800 million for its seventh fund

Venture capital firm Meritech Capital Partners LP has raised $800 million for its seventh fund, according to Bloomberg. Meritech had launched in 1999 and the firm was able to secure investors due to its solid track record. Some of the firm’s early investments include Datadog (IPO) and Coupa Software (IPO). Plus Meritech was also an early investor in Facebook.

The media time from investment to exit is about 3.5 years said Meritech Co-founder Paul Madera. The firm generally holds stock in their portfolio companies after they go public as well.

The firm’s most recent fund was $630 million in 2018. And generally, Meritech writes checks ranging from $10 million to $100 million. And this new fund will invest in the enterprise software, consumer, and healthcare sectors.

Meritech Capital general partner Alex Clayton pointed out that the current economic climate shifted the startup categories that are currently performing better. For example, the travel industry was hit hard but e-commerce has picked up.