Key Takeaways
- • Institutional Venture Partners is raising $1.8 billion for its 19th flagship fund, returning to its 2021 fund size after a 2024 decline to $1.6 billion, according to confidential fundraising documents obtained by Newcomer.
- • IVP has delivered a 31.1% net IRR since inception in 1980, with recent funds consistently ranking in the top half and occasionally top quartile of venture capital funds, though none have reached top 5% performance levels.
- • The firm is seeking premium economics: 2% management fees in year one, escalating to 2.25% thereafter, with 25% carry stepping to 30% once a 2.5x return hurdle is met, plus a 3% general partner commitment from the fund's total commitments.
- • IVP's 2015 fund achieved 2.0x DPI with 22.7% IRR as of March—ranking in the top quartile for that vintage according to Cambridge Associates, while the 2018 fund is held at 1.9x TVPI (top half) and the 2021 fund at 1.7x net TVPI (top quartile).
- • The 19th fund will target 35-45 portfolio investments with equity checks between $30 million and $40 million, consistent with IVP's long-established investment strategy.
Summary
Institutional Venture Partners, the 46-year-old Silicon Valley venture capital firm founded in 1980, is quietly raising $1.8 billion for its 19th flagship fund, according to confidential fundraising materials. The capital raise represents a return to the firm's 2021 fund size, marking a recovery from the firm's most recent 2024 fund, which closed at $1.6 billion.
The fundraising documents reveal that IVP is positioning itself to investors on the basis of consistent, above-average performance. Since its inception, the firm has generated a 31.1% net internal rate of return across its portfolio. While recent funds have regularly placed in the top half and occasionally in the top quartile of venture capital funds by vintage, IVP's current performance does not reach the very elite tier—none of the firm's recent funds have achieved top 5% rankings. The firm's historical high point came in 1996, when it delivered a 6.7x net DPI with a 94.5% IRR, though such outsized returns have not been replicated in the modern era.
IVP's most recent available performance data shows the 2015 fund holding at 2.0x DPI with a 22.7% IRR as of March, placing it in the top quartile for that vintage according to Cambridge Associates benchmarking data. The 2018 fund stands at 1.9x TVPI, positioning it in the top half but not top quartile. The more recent 2021 fund is held at 1.7x net TVPI, ranking within the top quartile, though that fund has had less time to mature and demonstrate full performance potential.
To attract limited partner capital, IVP is seeking premium fee economics reflecting its brand and historical performance. The firm is requesting 2% management fees in the first year, escalating to 2.25% thereafter. Carry terms include 25% at the base level, stepping to 30% once a 2.5x return hurdle is met. IVP is committing 3% of total fund capital as its own general partner stake, demonstrating alignment with investor interests. The 19th fund is expected to deploy capital across 35-45 investments with individual equity checks ranging from $30 million to $40 million.
The fundraising documents reveal that IVP is positioning itself to investors on the basis of consistent, above-average performance. Since its inception, the firm has generated a 31.1% net internal rate of return across its portfolio. While recent funds have regularly placed in the top half and occasionally in the top quartile of venture capital funds by vintage, IVP's current performance does not reach the very elite tier—none of the firm's recent funds have achieved top 5% rankings. The firm's historical high point came in 1996, when it delivered a 6.7x net DPI with a 94.5% IRR, though such outsized returns have not been replicated in the modern era.
IVP's most recent available performance data shows the 2015 fund holding at 2.0x DPI with a 22.7% IRR as of March, placing it in the top quartile for that vintage according to Cambridge Associates benchmarking data. The 2018 fund stands at 1.9x TVPI, positioning it in the top half but not top quartile. The more recent 2021 fund is held at 1.7x net TVPI, ranking within the top quartile, though that fund has had less time to mature and demonstrate full performance potential.
To attract limited partner capital, IVP is seeking premium fee economics reflecting its brand and historical performance. The firm is requesting 2% management fees in the first year, escalating to 2.25% thereafter. Carry terms include 25% at the base level, stepping to 30% once a 2.5x return hurdle is met. IVP is committing 3% of total fund capital as its own general partner stake, demonstrating alignment with investor interests. The 19th fund is expected to deploy capital across 35-45 investments with individual equity checks ranging from $30 million to $40 million.
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