The equity capital company stated its Mayfield XVI will continue to purchase early-stage companies, while its Mayfield Select II will invest in later-stage rounds of breakout portfolio business. One difference in the new Select fund will be its ability to invest in growth-stage business beyond its portfolio.
In its blog site post revealing the new funds, Mayfield handling partner Navin Chaddha remembered the timing of its fund XIII, raised in September 2008 right after the market crash.
In the wake of the crisis, Chaddha writes, Mayfield adhered to core principles. The company decided not to dramatically increase the size of its investment vehicles (unlike a few of its peers, which now hold a number of billion under management in present funds), and kept to a four-year fundraising cycle.
Kleiner Perkins, by contrast, went through a $600 million financial investment automobile in about a year and went back out to market to raise another fund soon thereafter.
” We stayed with our conviction of remaining as an early-stage endeavor financier over 4 subsequent funds even as the endeavor market was shifting. We went deeper into domains we were already experts in vs. following shiny new items. We raised funds at a measured rate of every 4 years and built a team of investors who were company home builders,” Chaddha composed.
To date, Mayfield has backed a multitude of business that have gone on to successful exits, including Lyft, Marketo, ServiceMax and SolarCity– all deals that came out of the 2008 monetary crisis and its subsequent funds. Present portfolio companies, like the CRISPR-focused biotech business Mammoth Biosciences and retail investments like PoshMark, show that the company hasn’t lost its radiance for selecting new deals.
The secret to the firm’s continued success is its focus on what Chaddha thinks about to be the “artisan model” of financiers “working carefully with a handful of business owners.”
” As much of our peers raised mega-funds, it took guts and discipline for us to stay concentrated rather than follow the crowd. We raised a comparable size fund every 4 years and bought thirty business per fund. We mostly led Series An investments and were comfortable with the reality that the companies we bought will progress,” Chaddha wrote.
So what’s next for the venerable company as it heads into its latest fund? Chaddha flags biology as technology; human-centered expert system; the renewal of chip style; the future of work; personal privacy and security; and next-generation customer brands as areas where Mayfield will seek to commit capital.