Bubble? What bubble? NEA raises monster $3.1B in capital for new funds

While folks like Marc Andreessen have been arguing lately that there is probably not enough money being invested in startups, that hasn’t stopped all the jibber-jabber about a possible bubble in valuations.

Adding fuel to the debate will be the $3.1 billion in new capital that New Enterprise Associates announced today. With such a mighty war chest, NEA will be in a strong position to outbid rivals to invest in the hottest companies.

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“Like our industry, much has changed since NEA’s founding nearly 40 years ago,” said Peter Barris, NEA managing general partner in the press release. “Yet some things are constant — like the steady march of innovation, the indomitable spirit of entrepreneurs, and the unwavering support of our limited partners.”

Word of the fund-raising broke last month from Fortune’s Dan Primack.

Of the new capital, $2.8 billion will go into NEA’s 15th investment fund, while another $350 million will be for the NEA 15 Opportunity Fund. Primack said the $2.8 billion would be the largest VC fund in history.

NEA said the expanded funding reflects its ambition to invest on a more global scale. Still, it also is a sign of the changing nature of startup funding.

Consider that Uber alone raised more than $2.6 billion in venture funding last year, and it seems clear that firms will need bigger funds, particularly if they want to participate in late-round investments.