Pitango Venture Capital has reportedly drastically scaled back its sixth fund, after it encountered great difficulty in meeting its target of $300-350 million. The firm began raising the new fund a year ago.
Pitango manages $1.3 billion in five funds. It has not been able to reach the first closing on its sixth fund, suggesting that some key investors have decided not to invest, or have postponed a decision on the matter.
Pitango, founded by managing general partners Nehemia (Chemi) Peres and Rami Kalish, is considered one of Israel's top venture capital firms, and its difficulties reflect on the industry as a whole.
Several Israeli venture capital firms, including Magma Venture Partners and Vertex Venture Capital, have been trying to raise new funds in the past couple of years, and Pitango's problems are liable to affect morale of these firms' partners.
Pitango said in response, "Pitango is the midst of raising capital, which is going as planned. We will not comment on the details, until we have completed the fundraising. The fund has never mentioned timetables or amounts to be raised, and any figure on this matter is pure speculation."
Published by Globes [online], Israel business news - www.globes-online.com - on July 8, 2012
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