Bain Pulls Megabucks for Venture Capital Fund

Bain Capital proves that big venture capital players are having no problem raising money.

Image: Bain Capital

The biggest venture players are rolling in the biggest dough, with news reported Monday that Bain Capital Ventures is the latest to put together a megafund.

Evelyn M. Rusli of the New York Times Dealbook reports that the venture capital arm of the Boston private equity firm—better known these days for its connection to Republican presidential frontrunner Mitt Romney—has pulled together $600 million.

With that money, Bain will make bets on startups and larger firms drawing close to being purchased or going public. Those investments will fall in areas like enterprise technology, e-commerce, and health care.

Rusli writes:

Michael Krupka, a managing director of Bain Capital Ventures, said the firm could have raised more money but wanted to keep the fund a manageable size. The firm began marketing the fund in November and closed it about two weeks ago.

“We’re taking a measured approach to growth in the marketplace, not an overly aggressive approach,” he said in an interview with DealBook. “If firms grow too quickly, it can be difficult.”

The latest fund raised by Bain is further evidence that established firms and big-name investors are having little trouble attracting investment from the pension funds and wealthy individuals that make up the core of those willing to put money into venture capital.

Andreessen Horowitz, led by Netscape cofounder Marc Andreessen, is reportedly working on a $1.5 billion fund.

But smaller firms and those in the middle appear to be having a much harder time attracting cash.

A National Venture Capital Association report earlier this month shows that investment in venture capital companies increased 32 percent in 2011 over 2010, but the money went to the same raw number of firms, 169.

The roster of names involved in fundraising in the fourth quarter is a Sand Hill Road who’s who list, with Vinod Khosla’s Khosla Ventures leading the way at $1.05 billion.