Section Partners Raises $245 Million
Two New Funds Provide Creative Capital for Entrepreneurs
PALO ALTO, Calif., September 21, 2021-- Section Partners (the "Firm"), a growth-stage venture capital firm, announced today the closing of two additional funds, Section Capital IV, LP and Section Ventures, LP (collectively, the "Funds"). Commitments to the Funds total $245 million, with strong support from Section Partners' longstanding limited partners and several new investors, including two prominent pension funds. Section Partners will use the increased capital base to expand its business providing capital to venture-backed companies and personal financing solutions to founders and other shareholders.
Section Partners now manages five funds with committed capital in excess of $365 million and has completed transactions with shareholders of over 60 companies since inception in 2014. Additionally, over half of the capital invested by the Funds to date has been deployed through transactions with founders, CEOs and CFOs. Funds managed by Section Partners have transacted with stockholders of 25 companies that have completed liquidity events, including Airbnb, Box, CrowdStrike, DocuSign, GitHub, Lending Club, MongoDB, One Medical, Palantir, Pinterest, Pivotal, Proterra, Uber, Upwork and Zuora1.
Section Capital IV, LP and a parallel co-investment fund (collectively, "Fund IV") closed on commitments of $213 million, exceeding the fundraising target of $150 million. Fund IV primarily makes investments in structured transactions with individual shareholders of late stage, venture-backed companies and has completed 64 transactions with stockholders of 19 companies since inception. To a limited extent, Fund IV also makes direct equity investments in venture-backed companies through both primary and secondary transactions. Section Ventures (the "Venture Fund") is a new strategy that complements Fund IV's direct equity investment activity. The Venture Fund has commitments of $32 million and exposure to 11 companies to date.
Section Partners was founded in 2014 and is led by Dave Crowder. Dave has over 25 years of Silicon Valley experience in venture capital and technology investment banking, including as Co-Founder and Co-Managing Partner of Thomas Weisel Venture Partners and as a technology investment banker at Thomas Weisel Partners and Montgomery Securities. Since inception, the Section Partners team has worked closely with venture-backed companies to support the personal financing needs of company founders, executives, and key employees through the use of proprietary transaction structures. With the growth and development of the Firm's business and relationships, Section Partners has expanded its mandate to include direct equity investments, enabling the Firm to serve as a trusted partner to late-stage companies with respect to secondary liquidity by providing a range of personal financing solutions to their individual shareholders and by participating in pre-IPO, primary financings.
"The increased scale and institutionalization of the venture industry together with the length of time that companies wait before completing an IPO or other liquidity event has created a need for a range of personal liquidity solutions for venture-backed company founders and other individual shareholders," commented Dave Crowder, Managing Partner of Section Partners. Crowder further stated: "Our team is thrilled to have substantially increased our capital base so that we can partner more deeply and effectively with late-stage, venture-backed companies with respect to their pre-IPO shareholder liquidity requirements and support companies in their primary financing rounds."
About Section Partners
Section Partners is a growth-stage venture capital firm providing creative capital to founders and executives of venture-backed technology companies. The Firm's company-friendly solutions are designed to address the liquidity needs of company-builders. Structured financing provided by Section Partners enables shareholders to secure personal capital for life events or option exercise while retaining future upside in shares. The Firm also makes traditional primary and secondary investments. The Section Partners team manages funds with committed capital of over $365 million, including legacy VSL Partners funds. Section Partners has offices in Palo Alto, CA and New York, NY. For more information, please visit www.sectionpartners.com.
1 The companies identified do not represent all the portfolio companies in funds managed by Section Partners. The reader should not assume that the companies identified were or will be profitable.
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