NewView Capital Debuts with $1.35B Fund and New Model to Drive Success of Growth Stage Companies
Innovative Venture Firm Led by Veteran Investor, NEA Alumnus Ravi Viswanathan
BURLINGAME, Calif., December 3, 2018-- NewView Capital Management L.L.C. ("NewView Capital") today announced the successful closing of its first fund of $1.35 billion and the acquisition of a portfolio of diverse growth-stage technology company investments from four funds managed by New Enterprise Associates (NEA).
"The venture capital ecosystem is evolving, presenting new challenges for companies and investors," said Ravi Viswanathan, Managing Partner of NewView Capital and former General Partner at NEA. "Companies are staying private longer, resulting in longer paths to liquidity and pressure on growth. We believe that in order to seize this emerging opportunity, a new model was needed to address shifting market forces and establish a new equilibrium."
The $1.35 billion fund includes significant capital to grow the existing portfolio and support new investments in mid-to-late stage companies. "NewView Capital is excited to partner with our unique portfolio companies and make select future investments," said Viswanathan. "And we're pleased to expand our horizons with respected Limited Partners, Goldman Sachs Vintage Funds and Hamilton Lane."
Harold Hope, Managing Director and Head of Goldman Sachs' Vintage Funds said, "We are excited to lead, along with Hamilton Lane and a syndicate of high quality investors, in this innovative approach to venture capital investment. This partnership positions NewView to support and capitalize the portfolio companies for further growth and continued success, while offering new investors diversified exposure behind an experienced manager. We value our long-standing relationship with NEA and look forward to this partnership with NewView Capital."
"There's a lot of congestion on the road to liquidity. Market dynamics are compelling companies to stay private longer, which creates growing demand for follow-on dollars and stretches investor holding periods to a decade or more," said Scott Sandell, Managing General Partner, NEA. "It's critically important to ensure great companies have access to the capital they need in a way that supports a healthy venture ecosystem. This new fund represents a novel approach to addressing some of the industry's most pressing challenges, and we believe this is the start of a very successful journey for Ravi, his team and New View's promising portfolio."
Before founding NewView Capital this year, Viswanathan co-led NEA's Technology Venture Growth Equity investment practice. Prior to joining NEA in 2004, Viswanathan worked at Goldman, Sachs & Co. as co-head of the technology practice in its private equity group. Earlier, he worked for McKinsey & Company and Raychem Corporation focusing on R&D. Viswanathan received an MBA from Wharton, and currently serves on the Wharton Entrepreneurship Advisory Board. He also earned a PhD in Chemical Engineering from UCSB, and a BS in Bioengineering from the University of Pennsylvania.
About NewView Capital
NewView Capital is a venture firm based in Burlingame, California that is seeking to develop an innovative model in venture capital. In 2018, Ravi Viswanathan left New Enterprise Associates (NEA) to found NewView Capital in response to evolving market dynamics, including extended exit timelines. NewView Capital has developed a new model that is designed to drive sustainable growth for entrepreneurs, venture capital firms and limited partners in this changing venture landscape. The firm's first fund is a $1.35 billion portfolio of diverse, growth-stage technology companies. It includes a healthy reserve intended to sustain the growth needs of the existing portfolio and to support new investments in companies the firm believes have proven teams and promising trajectories.www.newviewcap.com
About Goldman Sachs Asset Management LP's Vintage Funds
The Vintage Funds invest in the secondary market for private equity, providing liquidity, capital and partnering solutions to private market investors and managers globally. With over $26 billion in committed capital, the Vintage Funds have been innovators in the secondary market for over 20 years. The Vintage Funds are managed by the Alternative Investments & Manager Selection ("AIMS") Group within Goldman Sachs Asset Management. The AIMS Group provides investors with investment and advisory solutions across hedge fund, private equity, real estate, public equity, fixed income and environmental, social, governance and impact-focused investment strategies. For more information, visit: www.gsam.com.
About Hamilton Lane
Hamilton Lane (NASDAQ: HLNE) is a leading alternative investment management firm providing innovative private markets solutions to sophisticated investors around the world. Dedicated to private markets investing for 27 years, the firm currently employs more than 350 professionals operating in offices throughout the U.S., Europe, Asia-Pacific, Latin America and the Middle East. With approximately $452 billion in total assets under management and supervision as of September 30, 2018, Hamilton Lane offers a full range of investment products and services that enable clients to participate in the private markets asset class on a global and customized basis. For more information, please visit www.hamiltonlane.com or follow Hamilton Lane on Twitter: @hamilton_lane.
New Enterprise Associates, Inc. (NEA) is a global venture capital firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors and geographies. With more than $20 billion in cumulative committed capital since the firm's first fund closed in 1978, NEA invests in technology and healthcare companies at all stages in a company's lifecycle, from seed stage through IPO. The firm's long track record of successful investing includes more than 225 portfolio company IPOs and more than 375 acquisitions. www.nea.com
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