Emergence Capital Raises $1 Billion in New Funds

Emergence Capital Secures Nearly $1 Billion in New Funding

Emergence, a venture firm established in San Mateo, California, and specializing in enterprise technology startups, has successfully amassed approximately $950 million in capital commitments. This substantial amount is distributed across two distinct funds.

The firm finalized its sixth early-stage fund with a total of $575 million. Additionally, Emergence secured its inaugural opportunity fund, closing with $375 million in capital commitments.

A Shift in Fundraising Strategy

This fundraising outcome represents a notable departure from Emergence’s traditional practices. While consistently investing in promising companies at their inception, the firm previously adopted a more measured approach to fundraising.

For instance, its fifth fund was closed in 2018 with $435 million, and the fourth fund in 2015 with $335 million.

Notable Investments

Emergence boasts a strong track record, having made early investments in several now-prominent companies. These include Zoom, Veeva, Bill.com, SuccessFactors, and Box.

Accelerated Pace During the Pandemic

Discussions with co-founder Jason Green last year revealed an increased operational tempo during the pandemic. The firm proactively sought out promising startups.

As Green explained, Emergence transitioned to a more data-driven and outbound approach, actively contacting entrepreneurs shortly after their company’s launch or initial seed funding round.

Expanding Investment Scope

The success of Zoom, in which Emergence led a $30 million Series C round in 2015, significantly broadened the firm’s investment horizons.

Green stated that Zoom’s growth enabled them to evaluate a larger pool of potential investments, increasing the number of companies considered by 50% to 100%.

Leadership Transition and Fund Management

A recent conversation with Green, who is transitioning away from a primary role at the firm, provided insights into these new funds. Further details from that discussion will be available soon.

Currently, the new funds will be overseen by co-founder and general partner Gordon Ritter, alongside general partners Kevin Spain, Santi Subotovsky, Joe Floyd, and Jake Saper. All joined Emergence as junior investment professionals.

Principal Carlotta “Lotti” Siniscalco, who joined the firm in 2018, will also contribute to the fund’s management.