Dear Industry Ventures Community,
As Industry Ventures celebrates its 25th anniversary, we take a moment to reflect on a year marked by significant growth, collaboration, and progress across the venture ecosystem. This year was not just about building on our past successes, but also about investing in the firm’s future—strengthening our internal team, deepening strategic partnerships with both LPs and GPs, and leveraging our 25 years of history and experience to invest across our investment platform on behalf of our Limited Partners. Our commitment remains steadfast in empowering founders, investors, and teams to achieve their full potential. We are incredibly grateful for your continued support and partnership. Here’s to shaping the next 25 years together!
Hans Swildens, CEO and Founder
Assets Under Management
(+$940M YoY)
New Investments / Commitments in 2024
Total Realized Investments / Proceeds(1)
(+$324M YoY)
Employees
- We believe the US venture capital market is in the early stages of recovery and the market likely troughed sometime in 2024.
- AI will be Major Tailwind for Venture Capital: We believe AI is set to drive growth for new companies and technologies in the VC space, creating additional investment opportunities.
- Lack of Liquidity in the VC ecosystem persists but is starting to recover. Currently, exit activity remains subdued, which presents an opportunity for PE to drive VC exits via buyout and generate more secondary deals in the venture space.
- We believe Industry Ventures has a well-established playbook that puts us in a strong position to capitalize on these trends:
- Early-Stage Funds: Increased focus on investing in AI technology companies, across both the software and hardware sectors.
- Secondary Funds: Emphasis on providing liquidity solutions to VC investors and shareholders.
- Tech Buyout Funds: Supporting late-stage venture-backed companies and vertical software firms to scale and exit.
Tech Buyout Funds
- Tech Buyout II: Actively deploying Tech Buyout II, a $239M Fund, into the small cap tech buyout space.
- Expanded Portfolio: Completed 4 deals and invested/committed ~$20M in new transactions in 2024, focusing on transformative solutions in maritime software, warehouse management, and healthcare IT.
- Portfolio Exits: Celebrated 10 exits/partial exits, including Versaterm, Tempo, and Chartbeat driving $25M in proceeds across the strategy.(1)
Largest Exits Across the Tech Buyout Strategy
Largest Exits are based on 2024 proceeds
*Logos represent the largest investment holdings by NAV within the identified portfolio as of 09/30/2024. Includes both direct and estimated indirect exposure, if applicable. The portfolio companies identified and described herein do not represent all of the portfolio companies purchased, sold or recommended for funds advised by or invested into by Industry Ventures. The reader should not assume that an investment in the portfolio companies identified was or will be profitable. Past performance is not indicative of future results. For a list of all of our portfolio companies and for more information, please visit www.industryventures.com.
Secondary Funds
- Secondary X: Actively deploying Secondary X, a $1.45B Fund, investing in top companies.
- Expanded Portfolio: Completed 35 deals and invested/committed $568M in transactions throughout 2024.
- Portfolio Exits: Celebrated 170 exits across the Secondary Funds Portfolio, and drove $255M in proceeds across the strategy.(1)
Largest Exits Across the Secondary Strategy
Largest Exits are based on 2024 proceeds
*Logos represent the largest investment holdings by NAV within the identified portfolio as of 09/30/2024. Includes both direct and estimated indirect exposure, if applicable. The portfolio companies identified and described herein do not represent all of the portfolio companies purchased, sold or recommended for funds advised by or invested into by Industry Ventures. The reader should not assume that an investment in the portfolio companies identified was or will be profitable. Past performance is not indicative of future results. For a list of all of our portfolio companies and for more information, please visit www.industryventures.com.
Early-Stage Funds
- Partnership Holdings VII: Actively deploying Partnership Holdings VII, a $900M Fund, focused on backing Early-Stage VC Managers and leading VC-backed companies
- Direct III: Actively deploying Industry Ventures Direct III, a $301.5M Fund, investing in leading VC-backed companies directly and through pro-rata SPVs
- Expanded Portfolio: The Early-Stage funds invested/committed $318M in new transactions in 2024.
- Portfolio Exits: Celebrated 94 exits across the Partnership Holdings Funds and drove $85M in proceeds.(1)
Largest Exits Across the Early-Stage
Largest Exits are based on 2024 proceeds
*Logos represent the largest investment holdings by NAV within the identified portfolio as of 09/30/2024. Includes both direct and estimated indirect exposure, if applicable. The portfolio companies identified and described herein do not represent all of the portfolio companies purchased, sold or recommended for funds advised by or invested into by Industry Ventures. The reader should not assume that an investment in the portfolio companies identified was or will be profitable. Past performance is not indicative of future results. For a list of all of our portfolio companies and for more information, please visit www.industryventures.com.
Databricks, the Data and AI company, announced its Series J funding. The company is raising $10 billion of expected non-dilutive financing and has completed $8.6 billion to date. This funding values Databricks at $62 billion and is led by Thrive Capital. Industry Ventures has exposure to Databricks through Industry Ventures Secondary X, L.P.
CruxOCM has secured a USD $17 million Series A funding round led by M12, Microsoft’s Venture Fund. A leader in co-pilot technology for control room operators. This funding brings CruxOCM’s total capital raised to $27 million and will be used to fuel innovation and deliver greater value to its energy industry clients. Industry Ventures has exposure to CruxOCM through Direct II, L.P. and Partnership Holdings VI, L.P.
Pole Star provides ship-centric and business process-driven regulatory surveillance and compliance solutions to the maritime industry. Today, Pole Star’s solutions serve over 1,000 customers across the maritime ecosystem and are utilized by over 16,500
vessels. Industry Ventures has exposure to Pole Star through Tech Buyout II, L.P.
Unlocking Liquidity Webinar
Watch the recap to the “Unlocking Liquidity” webinar that Industry Ventures co-hosted with William Blair.
2023-2025E: How Big is The Secondary Market for Venture Capital?
We’ve revised our historical view of the global venture secondary TAM over the last few years as well as our outlook for the year ahead.
Tech Buyout Insight Recap
Explore our insights on the liquidity opportunities presented through the small-cap tech buyout space.
Secondary Insight Recap
Access our complete collection of articles on how secondaries are shaping the future of venture liquidity
Venture Capital: It’s a Great Time to be Investing
Explore why today’s market presents unique opportunities for venture capital investing and what’s driving this trend
Thinning the Herd: ~50% of Unicorns Should No Longer Be
Unicorns
Read more about our perspective on why we believe ~50% of Unicorns Should No Longer Be Unicorns
Industry Ventures in The Media
SecLink 2024 Awards Nominee(2) for Top VC Secondaries Buyer and Hans Swildens for SecLink Trailblazer.
Justine Huang, Principal, Spoke on the Women’s Venture Capital Summit Panel: The Growing Secondaries Market: Is it a Positive or a Negative for LPs, GPs, and Portfolio Companies?
1. Not inclusive of fees and expenses. Actual returns received by investors is lower.
2. The SecLink award nominations have yet to determine a winner for the respective categories stated. Industry Ventures does not pay to participate in the selection process which is the result of an open survey of industry participants.
Disclosures
This material does not constitute financial, investment, tax or legal advice (or an offer of such advisory services) and should not be viewed as advice or recommendations (or an offer of advisory services).
The views set forth herein are solely those of the authors and do not necessarily reflect the views of Industry Ventures. The information and views expressed are generic in nature and are not an offer to sell or the solicitation of an offer to purchase interests in any investments or services. Certain information contained in this article may constitute “forward-looking statements.” Any projections or other estimates contained herein, including estimates of returns or performance, are “forward looking statements” and are based upon certain assumptions that may change. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. There can be no assurance that the forward-looking statements made herein will prove to be accurate, and issuance of such forward-looking statements should not be regarded as a representation by Industry Ventures, or any other person, that the objective and plans of Industry Ventures will be achieved. All forward-looking statements made herein are based on information presently available to the management of Industry Ventures and Industry Ventures does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of Industry Ventures.
The portfolio companies identified and described herein do not represent all of the portfolio companies purchased, sold or recommended for funds advised by or invested into by Industry Ventures. Realized investments are those where >50% of a deal’s cost basis has been realized. The reader should not assume that an investment in the portfolio companies identified was or will be profitable. Past performance is not indicative of future results. For a list of all of our portfolio companies and for more information, please visit www.industryventures.com
Certain information contained in this article (including certain forward-looking statements and information) has been obtained from published sources and/or prepared by other parties, which in certain cases has not been updated through the date hereof. While such sources are believed to be reliable, neither Industry Ventures and any general partner affiliated with Industry Ventures or any of its respective directors, officers, employees, partners, members, shareholders, or their affiliates, or any other person, assumes any responsibility for the accuracy or completeness of such information.