It hasn’t taken lengthy for B Capital to amass a reasonably hefty third fund.
Simply 5 years after the enterprise agency was launched by Fb co-founder Eduardo Saverin and Raj Ganguly, a veteran of private-equity agency Bain Capital, the agency is taking the wraps off a 3rd fund that has amassed $822 million in capital commitments.
That’s nearly exactly twice what the now 70-person, growth-stage outfit raised for its second, $410 million fund, which was itself nearer in dimension to B Capital’s debut fund. (That closed with $360 million in capital commitments in 2016.)
All three funds rely as an anchor investor the administration consulting large Boston Consulting Group, the place Ganguly was an advisor for a number of years and with which the agency continues to work carefully.
As Ganguly has defined the connection to us beforehand, by way of their affiliation, B Capital will get an inside monitor into what BCG’s company shoppers are lacking so it may well put money into startups accordingly. B Capital corporations additionally acquire entry to a devoted BCG companion who opens up his or her assets and community, which may ostensibly end in massive partnerships and different offers.
All three funds rely the agency’s companions — together with Saverin — as outsize traders. However whereas they had been the largest traders of their first two funds, that’s not the case, says Ganguly, who says exterior restricted companions now personal barely extra of the brand new fund, together with two sovereign wealth funds, together with a U.S. nonprofit basis, an untold variety of pension funds, and household places of work. (If useful to know, Asia makes up a considerable a part of B Capital’s restricted companion base, nevertheless it has backers in Europe, in addition to the U.S., which is residence to the vast majority of its traders.)
The traders are a mirrored image of the agency’s world strategy, Ganguly mentioned yesterday, noting that the agency has, and continues, to see promising alternatives exterior of Silicon Valley. Amongst its largest bets thus far are Icertis, an 11-year-old, Seattle-based contract life cycle administration software program firm, and Ninja Van, a now six-year-old, Singapore-based firm that focuses on next-day deliveries for e-commerce corporations.
Nonetheless, the agency, which has places of work in Manahattan Seaside, Calif.; San. Francisco, New York and Singapore, sees loads of promise within the Bay Space, particularly in the case of corporations whose cross-border methods it may well assist develop. For instance, B Capital has backed Evidation Well being, an eight-year-old, San Mateo, Calif. firm that gives scientific validation of well being apps and that’s increasing into Asia with the assistance of B Capital.
B Capital, which has two companions in San Francisco, additionally sees a rising variety of fascinating startups with a small presence within the Bay Space however a big focus elsewhere. Ganguly factors to a CRM firm that B Capital lately funded (however can’t but title publicly). Its executives are based mostly based mostly primarily in Mexico and Brazil and the corporate isn’t promoting into U.S. markets. As for why they’ve a enterprise growth particular person and a sprinkling of different workers in Silicon Valley, it largely “helps them get a greater valuation,” observes Ganguly.
Within the meantime, different tendencies B Capital are monitoring focus on more and more distributed groups, and ignored small- and mid-sized companies in India particularly which have confirmed sturdy over time however may very well be run way more effectively given the suitable instruments.
Towards that finish, among the many agency’s latest bets is Synack, a Redwood Metropolis, Ca-based crowdsourced cybersecurity testing platform that protects important property (which is particularly useful in a world with decentralized workplaces); and Khatabook, a Bangalore-based startup that digitizes native companies by way of bookkeeping and on-line funds.
Extra broadly, B Capital invests in enterprise tech, fintech, healthcare tech, shopper enablement expertise, and transportation and logistics. The agency usually invests between $10 and $60 million in corporations at Sequence B, C and D levels, and Ganguly says that with its latest fund, it has the flexibleness to jot down a examine as small as $100,000 and to take a position upwards of $100 million in an organization.