Morgenthaler Ventures closes $400M ninth fund

updated

Morgenthaler Ventures, a Menlo Park, Calif. venture firm focused on early-stage investments in information technology and life sciences, has completed a $400 million raise for its ninth fund to date.

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Despite its long-held focus on first investments for young startups, the firm said it will be opening up to more second- and third-round fundings with this fund. However, in this fund Morgenthaler won’t be making private equity investments with its buyout team in Cleveland, OH and Boston, Mass., as it has in previous funds. All the money will be allocated to venture investments.

The firm’s previous fund of $450 million earmarked $315 million for venture investments, and devoted the rest to private equity.

[Update: We believe the firm is raising a separate fund for buyouts, but it isn’t commenting on those efforts.]

It is also announcing several new partners. On the IT side, Rebecca Lynn, formerly vice president of marketing at NextCard, will become a principal, while Guido Appenzeller, a co-founder of Voltage Security, will be an entrepreneur in residence. In life sciences, Doug Treco, a co-founder of Transkaryotic Therapies, was named as another entrepreneur in residence.

Some of Morgenthaler’s past investments include music sharing site imeem, the shopping-comparison site NexTag and Oncomed Pharmaceuticals.