Mercury Fund, a venture firm specializing in early-stage investments, recently secured $160 million for its fifth fund, marking its largest fund to date. This announcement aligns with a trend of venture capital firms revealing new capital commitments in the past month, joining the likes of Mythos Ventures, Connect Ventures, Fuse, and Unconventional Ventures.
Founded a decade ago under the name DFJ Mercury, the firm adopted the Mercury Fund name in 2013 during a restructuring by Draper Fisher Jurvetson. Over the years, Mercury Fund has played a pivotal role in generating over $9 billion in enterprise value across its portfolio, which includes more than 50 companies.
The fifth fund initially aimed to raise $150 million but ultimately exceeded that target. It attracted support from both existing investors and new limited partners, including university endowments, foundations, and family offices. Many of these new investors are situated in the central United States, which aligns with Mercury Fund’s investment focus in that region.
Blair Garrou, Co-founder and Managing Director of Mercury Fund, revealed that the firm typically raises funds every three to four years to allow for effective capital deployment. This fundraising process was notably quicker than previous ones, attributed to the strong performance of their prior fund.
Despite closing just before the onset of the COVID-19 pandemic, Mercury Fund successfully deployed the capital during that challenging period and backed several successful companies, including Cart.com, Otto, and Signal Advisors.