The pandemic has spelled economic setbacks for many people and industries, but the capital swirling about the technology world continues to roar along. In the latest development, TCV — the storied venture capital firm behind Airbnb, Spotify, Peloton, and Facebook — has closed a record $4 billion for its latest fund. This is not only the company’s biggest fund to date, but it also speaks to just how fast the tech industry is accelerating in terms of capital and how much of its tech is attracting. In 25 years of operations (a milestone passed in 2020), TCV invested $14 billion across hundreds of startups. This latest $4 billion fund raised in a matter of months represents nearly 30% of that figure.
(It’s also more than the company targeted initially, which was $3.25 billion.)
Parter John Doran told TechCrunch the plan will be to use the money to continue backing existing portfolio companies, as well as make new bets, both in areas that have shown to be solid winners in the last year — e-commerce, education, and tools to enable working in the cloud, for example — but also investments in areas that may not be doing as well right now. Still, TCV will believe will return, like travel.
“We have to take a long-term view,” he said in an interview. “It’s about great founders and CEOs, and where those in areas like travel, you’ll still see the startups get funded at up rounds. Besides, who will be better positioned to grow and take advantage of a world that’s now more digital? That is a huge opportunity in the long term.”