The enterprise capital agency mentioned its Mayfield XVI will proceed to put money into early-stage corporations, whereas its Mayfield Choose II will put money into later-stage rounds of breakout portfolio corporations. One distinction within the new Choose fund will likely be its potential to put money into growth-stage corporations exterior of its portfolio.
In its weblog publish asserting the brand new funds, Mayfield managing companion Navin Chaddha recalled the timing of its fund XIII, raised in September 2008 proper after the market crash.
Within the wake of the disaster, Chaddha writes, Mayfield caught to core rules. The agency determined to not dramatically improve the dimensions of its funding autos (in contrast to a few of its friends, which now maintain a number of billion below administration in present funds), and stored to a four-year fundraising cycle.
Kleiner Perkins, in contrast, went via a $600 million funding car in a few 12 months and went again out to market to lift one other fund shortly thereafter.
“We caught to our conviction of staying as an early-stage enterprise investor over 4 subsequent funds even because the enterprise business was shifting. We went deeper into domains we had been already specialists in vs. following shiny new objects. We raised funds at a measured tempo of each 4 years and constructed a crew of traders who had been firm builders,” Chaddha wrote.
Up to now, Mayfield has backed a slew of corporations which have gone on to profitable exits, together with Lyft, Marketo, ServiceMax and SolarCity — all offers that got here out of the 2008 monetary disaster and its subsequent funds. Present portfolio corporations, just like the CRISPR-focused biotech firm Mammoth Biosciences and retail investments like PoshMark, present that the agency hasn’t misplaced its luster for selecting new offers.
The key to the agency’s continued success is its concentrate on what Chaddha considers to be the “craftsman mannequin” of traders “working intently with a handful of entrepreneurs.”
“As a lot of our friends raised mega-funds, it took braveness and self-discipline for us to remain centered quite than comply with the gang. We raised an identical dimension fund each 4 years and invested in thirty corporations per fund. We primarily led Sequence A investments and had been comfy with the truth that the businesses we invested in will evolve,” Chaddha wrote.
So what’s subsequent for the venerable agency because it heads into its newest fund? Chaddha flags biology as expertise; human-centered synthetic intelligence; the resurgence of chip design; the way forward for work; privateness and safety; and next-generation client manufacturers as areas the place Mayfield will look to commit capital.