Prominent VC firm Insight Partners is nearing the successful closure of its latest investment fund (which would be its 13th), with anticipated commitments surpassing an astounding $10 billion, according to media reports. The firm had originally targeted $20 billion for this fund but is now adjusting expectations to a more modest, yet still impressive, figure of approximately $12 billion.
This development comes at a time when the global fundraising environment has become notably more challenging since the height of the tech investment boom in 2022. After record amounts of capital were raised and a record number of startups entered the unicorn club that year, it was swiftly followed by a slowdown in initial public offerings (IPOs) and a more cautious investment environment as investors started to tighten their purse strings. Despite these challenges, there are signs of a gradual recovery. Global VC firms, including Andreessen Horowitz, Thrive Capital, and Iconiq Growth, have successfully raised nearly $20 billion collectively in recent months.
Insight Partners’ latest fund was raised two years ago – at that time, the New York-headquartered fund raised nearly $20 billion, which was its largest fund to date. The current fund will not be formally closed until early next year, according to media reports. In recent developments, Insight Partners has seen two of its portfolio companies acquired, marking a notable week for the firm. Recorded Future, a leader in threat intelligence and wholly owned by Insight Partners, was purchased by Mastercard for $2.65 billion. This acquisition represents a significant return on Insight’s initial investment of $780 million in 2019. Similarly, Own, a startup specializing in cloud-based data backup tools, was acquired by Salesforce for $1.9 billion. This valuation is notably lower than the $3.5 billion assigned to Own in 2021.
In response to the changing times in the market, Insight Partners has opted to adopt several new measures to manage liquidity and enhance returns for its investors. As of June 30, the firm has over $80B in regulatory assets under management, and so far, it has invested in over 800 companies across the globe, while more than 55 of their portfolio companies have gone public via IPO. It contains the likes of Inovalon, Community Brands, Vector Solutions, and PDI Technologies in its investment portfolio.
Insight Partners is currently employing a private equity-style approach by selling stakes in its portfolio companies, which includes setting up a continuation fund. This fund also allows existing investors to liquidate their positions while enabling Insight Partners to retain its share in the underlying companies. One such asset within this continuation fund is Wiz, an Israeli cybersecurity firm that recently canceled a $23 billion acquisition deal with Google.
