Emergence Capital Closes $1 Billion Fund for B2B Investments

Emergence Capital Closes $1 Billion Seventh Fund

Emergence Capital announced the final closing of its seventh investment fund, totaling $1 billion, on Tuesday.

This marks the firm’s initial capital raise in almost four years. Previously, in May 2021, the venture firm, headquartered in San Mateo, California, secured approximately $1 billion in commitments through a pair of funds.

Previous Funding Rounds

The firm successfully finalized its sixth early-stage fund with $575 million in capital. Simultaneously, Emergence established and closed its inaugural opportunity fund, amassing $375 million in commitments.

Founded in 2003, Emergence Capital initially concentrated its investments on enterprise technology startups.

Shift Towards Artificial Intelligence

Reflecting a broader trend within the venture capital landscape, Emergence is now heavily focused on artificial intelligence. General partner Joe Floyd conveyed to Fortune that the current moment represents a “generational opportunity for AI investing.”

Notable Portfolio Companies

Throughout its history, Emergence has provided funding to prominent companies including Bill.com, Salesforce, Gusto, Zoom, and Box.

Long-Term Backing from Stanford University

Stanford University has been a consistent supporter of Emergence Capital since 2007.

Rob Wallace, CEO of Stanford Management Company, highlighted Emergence’s strengths, noting their “careful investors” and “deep domain specialists in SaaS and software.”

He further emphasized the firm’s expertise within the software as a service sector.