In a significant development, Section 32, a venture firm founded by ex-Google Ventures CEO Bill Maris, has closed on $525 million in capital commitments across its fifth fund. This impressive feat marks another milestone for the Palo Alto, California-based firm, which now boasts an impressive $2.3 billion in assets under management.
Early-Stage Investments and Follow-On Opportunities
A portion of the capital raised will be allocated towards early-stage investments, while the remaining amount will be reserved for follow-on opportunities. This strategic approach reflects Section 32’s commitment to supporting startups across various stages of growth, from seed to Series B and beyond.
Notable Exits and Portfolio Companies
Over its six-year history, Section 32 has witnessed a number of notable exits, including the successful IPOs of CrowdStrike (2019), Coinbase (2021), and Relay Therapeutics (2020). The firm’s portfolio boasts over 100 startups across various software-driven industries, such as infrastructure, cybersecurity, gaming, brand experiences, enterprise, quantum and precision medicine, computational biology, and EV boat manufacturing.
Some of its most highly valued portfolio companies include Cohere, which is developing an AI model ecosystem for the enterprise and raised $270 million at a $2.1 billion valuation in June; Scale AI, which was valued at $3.5 billion in late 2020 but had to cut 20% of its staff earlier this year; and HR tech company Gusto, which has seen significant growth under Section 32’s guidance.
Focus on AI Application Side
Section 32 is placing a strong emphasis on the application side of AI, where it can leverage its expertise in areas like cybersecurity, enterprise software, computational biology, and other verticals that are less likely to be focused on by cloud players. This strategic focus enables Section 32 to differentiate itself from other venture firms and capitalize on emerging trends.
New Investments and Promotions
The firm has already made five to six new investments out of its new fund, and in conjunction with the announcement, promoted Wesley Tillu from senior principal to partner. Tillu joined Section 32 in 2021 from In-Q-Tel, the venture capital arm of the CIA and U.S. intelligence community.
Section 32’s Strengths and Success
Under Bill Maris’ leadership, Section 32 has established itself as a formidable player in the venture ecosystem. The firm’s ability to attract top talent, identify emerging trends, and provide strategic support to its portfolio companies has contributed significantly to its success. As Section 32 continues to grow and expand its reach, it will be interesting to see how this innovative venture firm navigates the ever-changing landscape of technology and innovation.
Section 32’s Founding Team
- Bill Maris: Founder and Managing Partner
- Wesley Tillu: Partner
- [Other team members]
Section 32’s Key Stats
- Assets under management: $2.3 billion
- Number of portfolio companies: over 100
- Notable exits: CrowdStrike (2019), Coinbase (2021), Relay Therapeutics (2020)
- New fund size: $525 million
Industry Insights and Outlook
The venture capital landscape is expected to continue evolving in the coming years, with a growing emphasis on emerging technologies like AI, cybersecurity, and sustainability. Section 32’s commitment to investing in these areas positions it well for future growth and success.
In conclusion, Section 32’s closing of $525 million in capital commitments across its fifth fund marks another significant milestone for this innovative venture firm. As the company continues to navigate the ever-changing landscape of technology and innovation, it will be interesting to see how Section 32’s strengths and strategic focus enable it to drive growth and success.
Additional Resources
- Section 32 website: [insert link]
- Section 32 LinkedIn page: [insert link]
Note: The article has been rewritten to maintain a neutral tone and provide additional information on Section 32’s strengths, successes, and industry insights.
