Industry Ventures within hair’s breadth of upsized target for Fund X

Venture capital and growth fund stakes fell to account for 9% of secondaries volume last year, from 18% the prior year.

Industry Ventures has beaten the initial target for its latest flagship secondaries fund and appears to have also increased the total amount of capital it is seeking.

The San Francisco-headquartered VC secondaries specialist has raised $1.403 billion for Industry Ventures Secondary X, according to a filing with the US Securities and Exchange Commission, which shows the fund is seeking $1.455 billion.

Secondaries Investor understands the fund is yet to hold its final close.

Prior regulatory filings show the fund was targeting $1 billion for Fund X.

Industry Ventures declined to comment on fundraising.

Investors who have committed to the vehicle so far include South Carolina Retirement System, which pledged $75 million, according to Secondaries Investor data.

At $1.455 billion, the fund is almost double the firm’s predecessor flagship secondaries fund, which raised $850 million in 2021. That fund seeks exposure to later-stage VC-backed companies though direct secondaries, limited partnership stakes and GP-led processes, Secondaries Investor reported at the time.

Speaking with affiliate title Venture Capital Journal earlier in February, Industry Ventures founder and chief executive Hans Swildens had said he was busier than ever, fielding late-night calls from freaked out tech execs looking to sell fund stakes amid a liquidity squeeze in the VC market.

Pricing for second-hand stakes in VC and growth funds fell 11 percentage points to 68 percent of net asset value last year, year-on-year, driven by the “rise in the US yield curve and the resulting sharp correction in comparable multiples for technology and, more broadly, growth stocks”, according to Greenhill’s Global Secondary Market Review published in February.

Venture and growth accounted for 9 percent of secondaries deal volume last year, down from 18 percent the year prior, Greenhill noted.