Mar 11, 2020 - Economy & Business

Felicis Ventures raises $510 million for seventh fund

Source: Felicis Ventures

Felicis Ventures, an early-stage VC firm that's riding high with the recent sales of Plaid (to Visa for $5 billion) and Credit Karma (to Intuit for $7 billion), has raised $510 million for its seventh fund.

The bottom line: Most of the fund was raised before coronavirus sent the markets into chaos, but Felicis founder Aydin Senkut has been through enough cycles to avoid sudden investment strategy shifts.

Senkut experienced the dotcom boom and bust while an early Google executive, and raised the first Felicis fund just as the financial crisis was subsiding in 2010. He says:

  • “The reality is that we’ve been thinking about it for the last 10 years because you can’t predict these black swans. We’re gonna keep focusing on critical areas that are never gonna go out of fashion.”
  • His advice to startups: “You have a car and your number one job is to not run out of gas”—meaning, cash.

In addition to the new fund, Felicis also disclosed it has a lifetime cash-on-cash multiple of 5.4x across all funds as of January.

Go deeper

Why venture capital might avoid "fund size cuts" during coronavirus crisis

Illustration: Sarah Grillo/Axios

We're living through the third financial crisis of the modern venture capital era, following the dotcom crash and the housing bust.

The big picture: There wasn't a widespread push for "fund size cuts" in 2008, save for a few efforts tied to funds that had closed just before Lehman went under. While it's too soon to know for sure which path LPs will take this time around, odds are that it will look similar — with already-raised fund sizes remaining static.

Google donates $800 million in cash and ads to fight coronavirus

Photo: Google

Google CEO Sundar Pichai announced Friday that his company is donating more than $800 million in cash and advertising to help stem the spread of the novel coronavirus and ease the impact on small businesses.

Why it matters: It would appear to be the largest donation yet from a tech giant. The ad credits also could help keep business flowing through Google's ad system amid what is expected to be a sharp downturn in advertising.

Venture capital open for business on record amounts of dry powder

Illustration: Sarah Grillo/Axios

Venture capitalists are almost all working from home, but they have not stopped investing in startups.

The big picture: Axios yesterday spoke or emailed with 40 different U.S. firms, and every single one of them reports that they are still actively doing deals — several signing term sheets within the past week.