Battery Ventures, a global, technology-focused investment firm, has closed new funds totaling $3.8 billion to continue backing innovative companies worldwide in a variety of sectors.
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(Graphic: Battery Ventures)
The new funds—raised as Battery approaches 40 years of continuous operations—include Battery Ventures XIV and a companion fund, together capitalized at $3.3 billion, and the $530 million Battery Ventures Select Fund II, a vehicle intended to make additional investments primarily in portfolio companies of the firm’s other funds.
Battery will use the new capital to continue investing in companies at all stages, from seed and early-stage venture to buyout, in areas such as business software, including fin-tech and healthcare-IT; infrastructure software, including data/AI, developer tools and cybersecurity; consumer technology; and industrial technology and life-science tools. The firm pursues a collaborative, research-driven style of investing and operates as one global team from offices in Boston, San Francisco, Menlo Park, New York, London and Tel Aviv.
Battery has invested in more than 450 companies globally since its inception, excluding seed-stage deals, resulting in 73 total IPOs and 195 M&A events*. Eight of the firm’s companies staged IPOs in 2021, and 13 had M&A exits. The portfolio companies that went public last year were Affirm, Amplitude, Braze, Coinbase, Confluent, Olo, Scodix and Sprinklr.
“Battery has successfully navigated up and down markets since its founding in 1983, and we remain extremely optimistic about the potential for disruptive new technology companies to be formed right now, despite—and even because of—the current market conditions,” said Michael Brown, a Battery general partner. “The fundamental trends driving the sectors we target, ranging from corporate digital transformation to remote work to open banking to the rise of online commerce, are stronger than ever. We’re excited to partner with talented founders and management teams; leverage our differentiated, stage-agnostic strategy; and invest these new funds in the next generation of technology companies.”
In conjunction with the new funds, Zack Smotherman has been promoted to general partner. He will continue to grow the firm’s efforts investing in the industrial-technology and life-science tools market. The industrial technology group has completed over 60 deals in the last 15 years, focusing on companies offering hardware, software and services for industrial and life science use cases, including critical test-and-measurement tools; workplace safety technology; and robotics, among other technologies.
In addition, Battery’s Shiran Shalev, based in Tel Aviv, was promoted to partner. Shalev joined Battery in 2013 and focuses on venture- and growth-stage investments in financial technology and business software.
Battery also recently hired veteran technology-sales executive Bill Binch as an operating partner and promoted several professionals in its growing portfolio-services and operations group. These include Karen Bommart, now investor-relations partner; Rebecca Buckman, marketing partner; Scott Goering, business-development partner; and Jenny Kang and Susanne Richman, now both talent partners. Additionally, Max Schireson—the former CEO of MongoDB who has been serving as a Battery executive-in-residence since 2015—was named operating partner.
“We’re excited to announce these well-deserved promotions on our investment team, which highlight our penchant for promoting homegrown talent, as well as our global footprint and ability to invest across stages and diverse sectors,” said General Partner Jesse Feldman. “On the services side, the promotions—as well as Bill’s and Max’s new roles—highlight our commitment to ramping up our expertise in areas like recruiting, leadership, culture, go-to-market services and marketing. We’re excited to offer our portfolio even more strategic and tactical help in those areas.”
Finally, the new pools of capital will allow Battery to continue expanding its focus on “majority-growth” investments, deals in which the firm takes majority-ownership stakes in growth companies, both bootstrapped and venture-backed. Battery has been backing such companies since 2008 and, since then, has completed majority-growth investments across 17 platform companies. Eight of those of those investments were made in the last three years.
Battery closed its thirteenth family of funds totaling $2 billion in February 2020 and announced Battery Ventures Select Fund I, capitalized at $400 million, a year later.
“I could not have asked for a better partner than Battery Ventures,” said Robbie Payne, the CEO of CAMBRIO, a manufacturing-software company acquired by Sandvik last year. “The team has always been experienced in, and extremely knowledgeable about, our market; well-networked; and always helpful in areas including strategy, recruiting, and sourcing acquisitions.”
Ara Mahdessian, co-founder and CEO of ServiceTitan, added: “ServiceTitan has been proud to partner with Battery Ventures for over six years. The firm’s incredible experience scaling B2B software companies has proven to be extremely impactful as we’ve grown to become the ‘Operating System of the Trades.’ The counsel Battery has provided us has been substantial. Many firms claim they’re more than just a monetary investment—and in my experience, Battery truly is.”
Finally, Cube Software Co-Founder and CEO Christina Ross said: “We knew finding a new venture partner in the current economic climate would be especially high stakes. In Battery, we found an experienced, well-networked investor who has seen this movie before—and we’re excited to start our journey with the firm in our corner.” Battery led a Series B investment in Cube, a financial-software company, last month.
About Battery Ventures
Battery partners with exceptional founders and management teams developing category-defining businesses in markets including software and services, enterprise infrastructure, consumer tech, healthcare IT and industrial technology and life-science tools. Founded in 1983, the firm backs companies at all stages, ranging from seed and early to growth and buyout, and invests globally from offices in Boston, San Francisco, Menlo Park, New York, London and Tel Aviv. Follow the firm on Twitter @BatteryVentures, visit our website at www.battery.com and find a full list of Battery’s portfolio companies here.
*Data through March 31, 2022. Battery Ventures provides investment advisory services solely to privately offered funds. Battery Ventures neither solicits nor makes its services available to the public or other advisory clients. For more information about Battery Ventures’ potential financing capabilities for prospective portfolio companies, please refer to our website. For a complete list of portfolio companies, please click here.
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