Industry Ventures, a San Francisco-based firm that invests in venture-capital funds and private technology companies including Twitter Inc., filed to raise a $200 million fund.
The Industry Ventures Special Opportunities Fund II disclosed its plans in a document filed yesterday with the U.S. Securities and Exchange Commission. Last week, the firm said in a filing that it’s raising a separate $400 million fund called Industry Ventures Secondary VII.
While most venture firms invest directly in technology-related startups, Industry Ventures orchestrates so-called secondary deals, where it buys equity from employees and early investors. It also makes some direct investments in companies and runs a fund of funds, which puts money into other venture funds with less than $250 million.
Industry Ventures has acquired stakes in at least 95 companies including Twitter, Ancestry.com Inc., Chegg Inc., Facebook Inc. (FB:US) and Pandora Media Inc., according to its website. The firm was founded in 2000 and manages more than $1 billion.
The secondary market for private-company shares took off in 2010 as Internet companies such as Facebook, LinkedIn Corp. and Zynga Inc. grew rapidly while avoiding the public markets. Those types of deals dried up the following year when hot Web startups started going public and others such as Twitter and Square Inc. took steps to bar investors from selling stock on secondary exchanges.
Industry Ventures is still able to orchestrate secondary deals by working directly with companies. The firm’s previous Special Opportunities fund brought in $155 million in 2011.
Industry Ventures didn’t immediately return calls for comment.
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