Top Tier Capital Partners, known for investing in some of Silicon Valley’s best venture firms, has raised $925 million in fresh capital.
The San Francisco-based firm said in a statement that the new commitments were for its Top Tier Venture Velocity Fund 4 and a number of separate accounts, including one for co-investing in late-stage climate technology companies.
Garth Timoll, managing director at Top Tier, said in an interview that the firm had chosen to raise new money because a challenging market environment was creating “better discounts, which we think will lead to better returns in the long run.”
Among other investments, it wants to back enterprise software, security, cloud and data analytics businesses that generate $5 million to $15 million in revenue, Timoll said.
Top Tier looks to invest directly in startups before they go public and has in the past backed the likes of fantasy sports company DraftKings Inc. and mobile therapy provider Talkspace Inc. The new money will also be used to invest in venture capital firms, including via the secondaries market and direct co-investments.
The latest fundraise takes Top Tier’s assets under management to more than $8.1 billion, according to the statement. The firm has also opened a new office in Boston, Massachusetts.