Despite economic challenges brought on by the recent pandemic, investment within the technology sector remains remarkably robust. Demonstrating this trend, TCV – a prominent venture capital firm with a successful track record supporting companies like Airbnb, Spotify, Peloton, and Facebook – has finalized a new fund totaling a substantial $4 billion.

This represents the largest fund ever established by the firm and underscores the accelerating pace of capital flow within the technology industry, as well as the sector’s strong ability to attract investment. Over its 25 years of operation, culminating in a milestone reached in 2020, TCV has allocated $14 billion to hundreds of emerging companies. This latest $4 billion fund, secured within a few months, constitutes almost 30% of that total investment.

(The amount also exceeds the company’s initial goal of $3.25 billion.)

According to partner John Doran, as reported to TechCrunch, the capital will be utilized to further support current portfolio companies and to make new investments. These investments will focus on sectors that have performed exceptionally well in the past year – such as e-commerce, online education, and cloud-based work solutions – as well as areas poised for recovery, including the travel industry.

“A long-term perspective is essential,” he stated in an interview. “Our focus remains on exceptional founders and CEOs, and we anticipate continued funding for promising startups in sectors like travel, even at increased valuations. Furthermore, those companies best equipped to thrive in an increasingly digital world will be uniquely positioned for long-term growth.”

While the closure of a venture capital fund may not be inherently newsworthy, it serves as a key indicator of confidence, interest, and activity at the initial stages of the funding process. This, in turn, directly impacts startups and the broader technology industry.

TCV XI, as the fund is designated, signifies market strength – it is $1 billion larger than the firm’s previous fund, which was closed prior to the pandemic in 2019 – and validates the adoption of newer, less conventional practices that have become commonplace.

Julia Roux, the company’s head of investor relations, informed TechCrunch that the fund was raised and finalized entirely remotely over the past year, with contributions from both existing and new limited partners. This virtual approach has also become standard practice for TCV (and other venture capital firms) in completing deals over the last year and appears likely to continue.

TCV has maintained a high level of activity in the past year, not only through private startup investments but also by witnessing one of its most successful portfolio companies, Airbnb, launch an initial public offering. This IPO occurred in December, despite a year that brought significant disruption to Airbnb’s core business of providing travel accommodations and related services.

The IPO exemplified the firm’s commitment to long-term investing – a strategy it is well-positioned to pursue given its current financial resources – regardless of prevailing market conditions. Doran emphasized TCV’s continued confidence in Airbnb’s potential, demonstrated by further investment in the company during the IPO.

Other significant investments this year have been concentrated in commerce and financial technology, including Mollie ($106 million), Spryker ($130 million), Revolut ($500 million), Klarna ($650 million), Nubank ($400 million), and Mambu ($135 million), as well as Strava ($110 million). (It is noteworthy that a large proportion of these investments were made outside of the United States; the company currently manages approximately $4 billion in assets outside the U.S.)

Recent successful exits include AxiomSL, Genesys, Cradlepoint, and Silver Peak.

“We are grateful for the continued support of both new and returning investors, which allowed us to secure a record-breaking fund,” stated Jay Hoag, a founding general partner at TCV, in a press release. “Equally important, we are honored to collaborate with the talented entrepreneurs we’ve partnered with over the past 25 years, whose vision and dedication have been the cornerstone of our success. We are eager to support the next generation of iconic companies with our new fund, within this dynamic technology landscape.”