Sources inform ''Globes'' that Greylock Partners has raised $50 million from its current investors. The money is for an annex to its existing Israel fund, raised in 2006, which will now have $200 million under management. The additional capital will enable Greylock to make more investments over the next two years.
There is considerable logic behind Greylock's method of expanding a current fund. Instead of trying to raise a new fund with all that that would entail, especially in the current difficult market climate, it asked investors to increase their investments in the current fund. These investors are already confident in Greylock. However, whether other Israeli venture capital funds may also decide on this method for raising an annex to current funds is doubtful.
Greylock Israel was established two years ago and is Greylock's only activity outside the US. Greylock has $3 billion under management. The firm began investing in Israeli companies before it established a local branch, and has invested in 20 Israeli companies since 2001.
Greylock's Israeli portfolio includes Aeroscout Ltd., Celeno Communications Ltd., ClearForest Ltd., eSnips Ltd., Hyperoll Inc., Imperva, Unipier Inc., and Zend Technologies Ltd.. Reuters (LSE: RTR; NASDAQ: RTRSY) acquired ClearForest six months ago for $30 million. Greylock's US portfolio includes FaceBook Inc. and LinkedIn Inc.
Published by Globes [online], Israel business news - www.globes-online.com - on October 7, 2008
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