Iconiq Capital, a private office managing capital for some of the most prominent figures in the tech industry, has successfully raised $5.15 billion across two funds associated with its seventh growth fund family. This impressive achievement comes despite the firm initially targeting $5.75 billion, according to information from the New Mexico State Investment Council.
It is worth noting that Iconiq’s latest fund size represents a significant increase from its previous fund, which had a target of $3.75 billion. In comparison, many other large growth investors have struggled to reach their fundraising goals. For instance, Tiger Global closed its latest venture capital fund at $2.2 billion, significantly below its initial target of $6 billion.
The differences between Iconiq and Tiger Global are notable. Tiger Global has faced criticism for investing capital too quickly during the tech boom of 2020 and 2021, leading to concerns about overpaying for investments. On the other hand, Iconiq has been actively seeking secondary positions, indicating a more cautious approach to capital deployment.
The success of Iconiq’s fundraising efforts suggests that its backers are pleased with the firm’s investment strategy. The firm has achieved several dozen exits from its portfolio in recent years, including high-profile IPOs such as Snowflake, Airbnb, GitLab, and HashiCorp. Additionally, Iconiq has made significant investments in promising startups like Drata, Canva, Ramp, ServiceTitan, Writer, and Pigment.
Iconiq’s seventh fund family consists of two funds: VII-A and VII-B. Fund VII-A has raised $3.06 billion from 219 investors, while Fund VII-B closed on $1.26 billion from 462 backers. These funds will be used to invest in 20 to 25 tech companies, as reported by Buyouts Insider based on the New Mexico Investment Council meeting.
Overall, Iconiq Capital’s successful fundraising efforts and its track record of successful exits and investments indicate a strong position in the venture capital industry. The firm’s ability to attract significant capital from prominent investors speaks to its reputation and expertise in the tech sector. As the firm continues to deploy its latest funds, it will be interesting to see what new opportunities it will uncover and support in the ever-evolving tech landscape.