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Institutional Venture Partners

Specialises in venture growth investments, industry rollups, founder liquidity transactions, and select public market investments.
Institutional Venture Partners
Leadership team

Todd Chaffee (Managing Director )

Jules Maltz (General Partner )

Eric Liaw (General Partner )

Somesh Dash (General Partner)

Tom Loverro (General Partner)

Number of Employees
50 - 100
Headquarters
Menlo Park, California, United States
Established
1980
Social Media
Summary

Institutional Venture Partners (IVP) is a prominent later-stage venture capital and growth equity firm based in the United States. With $7 billion of committed capital, IVP is known for its expertise in advising technology executives and investing in companies during their growth stages, typically those with valuations above $100 million.

IVP believes that growth is a crucial factor that differentiates successful companies from others, and they work diligently to support CEOs in managing the risks and challenges that arise during rapid growth phases. The firm was founded in 1980 by Reid Dennis and has since invested in over 300 companies, with 106 of them going public. IVP has established itself as one of the top-performing firms in the industry, boasting a 36-year internal rate of return (IRR) of 43.2%.

In terms of investment strategy, IVP primarily focuses on later-stage companies and offers capital in various deal types, including seed capital, early venture, growth venture, late stage & IPO, listed equity, acquisition/LBO, venture debt, debt, structured capital, special or distress situations, and hedge strategies. They typically invest between $10 million and $50 million in a single deal, although they can deviate from these limits for the right opportunity. IVP's team consists of experienced investment professionals who specialize in guiding companies through their growth phases. The firm operates with two offices and has a presence in North America, with a focus on Canada and the United States.


History

Institutional Venture Partners (IVP) is a venture capital investment firm based in Menlo Park, California, in the United States. It focuses on investing in later-stage companies and growth equity investments. Founded in 1980 by Reid Dennis, IVP is one of the oldest venture capital firms in existence.

IVP has a rich history within the venture capital industry. Reid Dennis, while working as an analyst at the Fireman's Fund Insurance Company in the 1950s, created a network of screened individual investors, which would later become known as angel investors. In 1974, Dennis established Institutional Venture Associates (IVA), which received funding from institutions like American Express. Notably, Burton J. McMurtry and David Marquardt, who was involved with IVA, went on to found Technology Venture Investors, the first investor in Microsoft.

In 1980, Reid Dennis, along with other partners, founded Institutional Venture Partners. The firm's first fund started with $22 million. Over the years, IVP has focused on venture growth investments, industry rollups, founder liquidity transactions, and select public market investments. It typically makes a small number of relatively large investments per year, approximately 12 to 15.

IVP has received recognition in the venture capital industry. It was named in AlwaysOn's Top 25 VC Firms List in 2014 and was ranked #1 on GrowthCap's Top 25 Growth Equity Firms List in 2015. Entrepreneur Magazine included IVP on its VC 100 List, and the firm ranked #2 as the Top VC in Mobile by App Portfolio Downloads by Sensor Tower. Additionally, IVP has been listed as one of the Most Active Bay Area VC Firms Ranked by the Number of Deals in 2015 by the San Francisco Business Times. PitchBook ranked IVP #2 as the Most Active VC Investor in U.S.-based Tech Companies That Have Completed an IPO Since the Beginning of 2011.

IVP has raised multiple funds over the years, with notable amounts being $1 billion for the fourteenth fund in June 2012, $1.4 billion for the fifteenth fund in April 2015, and $1.5 billion for the sixteenth fund in September 2017.


Investment criteria

Institutional Venture Partners (IVP) specialise in growth-stage investments. With a 40-year track record and over 400 partner companies, including well-known names like Twitter, Snapchat, and Slack, IVP has established itself as a trusted player in the venture capital industry.

When it comes to investment criteria, IVP focuses on identifying and partnering with companies that have the potential to become enduring market leaders. They have a knack for spotting iconic companies before they gain widespread recognition, positioning themselves as early investors in high-growth companies. IVP's goal is to accelerate the success of its portfolio companies by providing strategic guidance and support. IVP's investment criteria are centred around several key factors:

  • Inflexion Points: IVP looks for companies in critical states of inflexion, which often represent pivotal moments of growth and opportunity. These inflexion points may include product launches, market expansion, or significant milestones in a company's development.
  • Growth Potential: IVP seeks out companies with high growth potential. They are attracted to businesses that operate in large and expanding markets, have innovative products or services, and demonstrate a strong competitive advantage. IVP believes in the power of growth and seeks to supercharge it in the companies they partner with.
  • Market Leadership: IVP aims to partner with companies that have the potential to become market leaders in their respective industries. They focus on businesses that have the ability to disrupt existing markets or create new ones. IVP's goal is to help guide these companies on the path to market leadership and support them in achieving enduring success.
  • Founders and Management Teams: IVP places great emphasis on the quality and capability of the founders and management teams behind the companies they invest in. They look for visionary leaders who are passionate, driven and have a deep understanding of their industry. IVP acts as a counsellor and confidant to these founders, providing guidance and support as needed.
  • Scalability and Sustainable Competitive Advantage: IVP seeks companies that have the potential for scalable growth and a sustainable competitive advantage. They evaluate a company's business model, technology, intellectual property, and market positioning to assess its long-term viability and potential for continued success.

Values

Institutional Venture Partners (IVP) operate based on a set of core values that guide their approach to investing and working with portfolio companies. These values reflect IVP's commitment to integrity, collaboration, and long-term partnership:

  • Integrity: IVP places a strong emphasis on integrity in all aspects of its business. They strive to maintain the highest ethical standards, transparency, and honesty in their dealings with entrepreneurs, investors, and stakeholders. IVP values trust and believes that fostering trust is essential for building strong and enduring relationships.
  • Collaboration: IVP recognizes the power of collaboration and teamwork. They actively seek to collaborate with entrepreneurs, management teams, and co-investors to achieve mutual success. IVP views themselves as partners rather than mere investors, actively engaging with portfolio companies to provide strategic guidance, support, and access to its extensive network.
  • Long-term Partnership: IVP's approach is focused on building long-term partnerships with the companies they invest in. They are committed to supporting the growth and success of their portfolio companies over the long term, understanding that building great companies takes time. IVP takes a patient approach and provides ongoing support to help companies navigate challenges, scale their operations, and achieve market leadership.
  • Entrepreneur-Centric: IVP has a deep respect for entrepreneurs and their vision. They recognize the importance of entrepreneurship in driving innovation and economic growth. IVP seeks to empower entrepreneurs by providing them with the resources, expertise, and guidance they need to succeed. They aim to be a trusted ally, working hand-in-hand with entrepreneurs to help them realize their vision and achieve their goals.
  • Continuous Learning and Improvement: IVP embraces a culture of continuous learning and improvement. They strive to stay at the forefront of industry trends, technologies, and market dynamics. IVP's team is dedicated to expanding their knowledge, honing their skills, and adapting to the evolving needs of the companies they work with. This commitment to continuous learning enables IVP to provide informed and relevant guidance to their portfolio companies.

Mission

The mission of Institutional Venture Partners (IVP) is to accelerate the success of iconic companies by providing strategic guidance, resources, and capital at critical stages of their growth. With a keen eye for spotting emerging opportunities, IVP aims to be at the forefront of identifying and partnering with companies before they become widely recognized. Their mission is rooted in a passion for unlocking untapped potential and helping entrepreneurs realize their visions.

IVP's mission is centred around supercharging growth and enabling companies to achieve enduring market leadership. They take pride in being engaged venture capital partners who not only provide financial support but also act as trusted advisors, counsellors, and confidants to founders and CEOs. IVP understands that moments of inflexion are crucial in a company's journey, and they strive to be the compass that guides entrepreneurs on the winding path to success. They celebrate milestones, bolster critical business functions, and provide expertise in moments that matter, with the ultimate goal of helping their portfolio companies become industry leaders in their respective markets.


Portfolio

Institutional Venture Partners (IVP) has an impressive portfolio of investments in leading technology companies across various sectors. With a track record spanning over four decades, IVP has partnered with more than 400 companies, many of which have become industry leaders. Here are some notable companies in IVP's portfolio:

  • Amplitude: Amplitude is a provider of product analytics that helps companies build better products. Its platform enables businesses to understand user behaviour, gain insights, and make data-driven decisions to optimize product experiences.
  • Brex: Brex is a financial technology company that offers corporate credit cards and financial solutions tailored specifically for startups and emerging businesses. Its innovative approach simplifies the credit card application process and provides startups with access to credit and financial tools.
  • Coinbase: Coinbase is a leading cryptocurrency exchange platform that allows individuals and institutions to buy, sell, and store digital assets. It provides a user-friendly and secure platform for trading various cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.
  • CrowdStrike: CrowdStrike is a cloud-based cybersecurity company specializing in endpoint protection and threat intelligence. Its platform utilizes artificial intelligence and machine learning to detect and prevent cyber threats, helping organizations defend against advanced cyberattacks.
  • Datadog: Datadog is an essential monitoring platform for cloud applications, offering comprehensive insights into the performance and security of modern applications. Its unified platform enables organizations to monitor, troubleshoot, and optimize their cloud infrastructure and applications.
  • Discord: Discord is a popular communication platform designed for communities, gamers, and professionals. It provides voice, video, and text chat features, fostering collaboration and interaction among users in real time.
  • GitHub: GitHub is the world's largest software development platform that enables developers to collaborate, share, and contribute to projects using version control systems. It provides a seamless workflow for software development and facilitates collaboration among teams.
  • Robinhood: Robinhood pioneered commission-free investing and offers a user-friendly mobile app for trading stocks, options, cryptocurrencies, and other financial instruments. It aims to democratize access to financial markets and empower individuals to invest in a cost-effective manner.
  • Slack: Slack is a team messaging and collaboration platform that brings communication together in one place. It enables teams to communicate, share files, and collaborate on projects, increasing productivity and streamlining workflows.
  • UiPath: UiPath is a leading Robotic Process Automation (RPA) software company, that provides a platform for automating repetitive tasks and processes. Its technology helps organizations improve efficiency, reduce errors, and free up human resources for more value-added work.

References
Institutional Venture Partners
Leadership team

Todd Chaffee (Managing Director )

Jules Maltz (General Partner )

Eric Liaw (General Partner )

Somesh Dash (General Partner)

Tom Loverro (General Partner)

Number of Employees
50 - 100
Headquarters
Menlo Park, California, United States
Established
1980
Social Media