[ibimage==32083==Large==none==self==ibimage_align-center]
Greycroft Partners announced a $200 million fund today as its first growth fund. The fund, called Greycroft Growth, will invest $5 million to $10 million in about 25 companies' series B and series C rounds over the next three years.
Considering Greycroft's LA-based portfolio company Maker Studios' exit in March (the $500,000 sale to Disney gave Greycroft a 15x return), Greycroft now has a huge opportunity for larger returns with the new fund.Other portfolio companies like Braintree and Buddy Media also successfully exited recently.
“All of the companies raised growth financing, and we participated in a relatively small way, but it would have been nice to participate at $5 million,” partner Ian Sigalow said in a statement.
Greycroft, which has offices in Santa Monica and New York, now can support its existing portfolio companies in their later growth stages. Already, the fund made its first investment last month with participation in a $17 million for analytics company App Annie. (Sigalow saidGreycroft Growth will not participate unless another investor leads and sets the price.)
“It’s really challenging for early stage venture funds to reserve for those rounds out of small funds," Sigalow said. "We also wanted to be able to invest in companies we’ve known for a while and we may have missed the A or B.”
