The 35-year old venture capital firm Accel has raised USD 2.53 billion to fund technology startups. The fresh capital is divided between three Accel funds, said a source. This is Accel Partner's largest fund raise.
Here’s how the new Accel funds break down, according to the person familiar with the matter: The flagship Accel XIV fund totals USD 525 million, up from USD 500 million in 2016. Accel has also raised a growth fund of USD 1.5 billion, up from USD 1.2 billion, and a USD 500 million Leaders Fund to add more cash to select growth investments, up from USD 300 million.
Accel had a phenomenal year as a lot of the companies the firm got in on early stages such as Dropbox Inc., Flipkart Group and Qualtrics were either acquired for exorbitant prices or went public. Globally, it has had nine IPOs and 12 acquisitions in the last four years.
Silicon Valley is teeming with venture capitalists commanding huge capital since the dot-com boom. The Bloomberg US Startups Barometer, an index that tracks deal activity to measure the health of the market, has climbed higher every week of the year so far and has more than doubled from a year ago.
It is not clear how much of this fund will be disbursed for its investments in India. Accel is one of the most active and a marquee investors in Indian tech startups. In the last decade alone, Accel has invested more than USD 500 million in India. It has raised five funds in India so far, with assets worth more than USD 1 billion under management.
Its big bets in India include cab-hailing major Ola, food-delivery company Swiggy, Software as a Service (SaaS) provider Freshworks, healthcare company Portea and marketplace of truckers Blackbuck, among others.