Fidelity Secures $250 Million for New Venture Capital Fund

Fidelity has made a significant move in the venture capital space, securing $250 million for its first-ever venture capital fund. This fund will focus on supporting early-stage companies.

Fidelity's new venture capital fund will have $250 million in capital to invest in promising startups. This is a substantial amount, especially for a first-time fund.

Investors are likely to be interested in the types of companies that Fidelity's fund will support. The article doesn't specify the focus areas of the fund, but it's worth noting that Fidelity has a long history of investing in various sectors.

This investment is a testament to Fidelity's confidence in the potential of early-stage companies to drive innovation and growth.

Fidelity raised $250 million for its first venture capital fund, a significant milestone for the Boston-based asset manager.

The fund, called Fidelity Venture Capital Fund I, will invest in mid-to-late stage private companies in the technology, media, and telecommunications sectors.

Fidelity has been investing in private companies for over 15 years, but this fund marks a shift towards a more direct and specialized venture capital strategy.

The fund received support from high-net-worth individuals, family offices, and registered investment advisers, and has already invested $31 million in 10 companies.

Fidelity's portfolio manager and global head of private equity, Karin Fronczke, emphasized the fund's potential for success, citing attractive valuations and good companies at reasonable prices.

The private credit market is also experiencing a boom, with the International Monetary Fund estimating it to be worth over $2 trillion.

Here are some key statistics about the fund:

Fidelity Investments closed its Venture Capital Fund I LP, also known as Fund I, with a total of $250 million in support from high-net-worth individuals, family offices, and registered investment advisers.

The fund held its final closing on September 30, marking a significant milestone in Fidelity's venture capital journey.

Fund I targets mid-to-late stage companies in the technology, media, and telecommunications sectors, a departure from Fidelity's traditional private market investing approach.

Fidelity has been investing in private companies for over 15 years, having backed notable companies like Twilio, Stripe, and even SpaceX.

The firm has deployed over $28 billion across 600 investments in 350 private companies during this time, focusing on high-growth category disruptors.

Fidelity's Portfolio Manager and Global Head of Private Equity, Karin Fronczke, emphasized the success of the fundraise, attributing it to Fidelity's legacy investing in private companies.

Fund I will cater to high-net-worth individuals, family offices, and registered investment advisers seeking more diversification in private market investments.

The fund is already in motion, having invested $31 million in 10 companies spanning industries including aerospace, defense, artificial intelligence, and e-commerce.