NextView Ventures Closes $89M Fund IV

According to filings with the Securities and Exchange Commission, NextView Ventures, a venture capital firm located in Boston, has secured $89.6 million for its latest investment vehicle. This fourth fund managed by the firm surpasses all previous funds in size, exceeding its initial target of $70 million through oversubscription. Representatives from NextView Ventures have not yet provided a statement in response to inquiries.

NextView Ventures was founded in 2010 by Rob Go, previously a partner at Spark Capital; Dave Beisel, with prior experience at Venrock and Masthead Venture Partners; and Lee Hower, formerly an investor at Point Judith Capital. Melody Koh was added to the team as a partner three years ago, and Leah Fessler, a former journalist, recently joined as an investor.

Operating from offices in both Boston and New York, the fund concentrates its investments on early-stage consumer and software-as-a-service businesses, specifically those at the pre-seed and seed stages. Companies currently in its portfolio include Ellevest, an investment platform designed for women; Grove Collaborative, a subscription service for sustainable products; and ThredUp, an online resale marketplace that has submitted a confidential IPO filing. Earlier this year, NextView initiated a virtual accelerator program aimed at expanding its deal sourcing network, investing $200,000 for an 8% ownership stake in a selection of pre-seed and seed startups concentrating on “the everyday economy.”

The startup ecosystem in Boston has demonstrated continued strength, attracting significant venture capital investment even during the pandemic. Data from PitchBook indicates that startups in the Boston area secured more private funding during the summer of 2020 compared to the same period in 2019, suggesting a net positive impact from the pandemic on startup funding.

My colleague, Alex Wilhelm, and I recently reported on the increasing presence of the Boston area within the venture capital landscape. In the third quarter of 2019, New England accounted for 9.3% of U.S. venture deals and 10.3% of U.S. venture dollars. During the third quarter of 2020, these figures remained at 9.3% of U.S. venture deals, but increased to 12.7% of U.S. venture dollars. This shift in percentage is particularly noteworthy given the economic uncertainty of the time.

The launch of NextView’s new fund further demonstrates the city’s capacity to draw in institutional investment. The firm’s prior fund was finalized in 2017 with a total of $50 million in commitments.