Sigma closes eighth VC fund on $500m

Venture firm Sigma Partners will not make any major changes in its early-stage strategy for its latest, $500 million fund.

US venture firm Sigma Partners has closed its eighth fund on $500 million (€355 million). The new fund will continue the investment strategy of its predecessors in targeting early stage investments in the clean tech, infrastructure, semiconductors, software and wireless technology sectors.

Sigma launched the fund in June with a $500 million target. The firm's existing 25 to 30 limited partners all returned, with the addition of a couple new LPs, said managing director Greg Gretsch. Sigma did not use a placement agent.

The firm's sixth fund closed on $600 million in 2001, and its seventh fund closed on $400 million in 2005. Both are fully invested.

As with its previous funds, Sigma expects its eighth fund to be fully invested in three years, and aims to have a portfolio of around 35 companies. The average investment out of Fund VIII will mirror those of Fund VII in size, Gretsch said, with each initial investment ranging from $2 million to $8 million.

The fund has made its first investment. Though the deal has not yet been announced, Gretsch said the acquisition is in the storage sector. A couple more deals are due to close soon, he said.

Fund VII has not yet had an exits, but marketing software supplier Aprimo, a company Sigma acquired through its sixth fund, is currently planning a $50 million initial public offering.