New York-based venture capital (VC) firm Interplay has reportedly closed its third fund, raising $45 million in capital commitments.
The firm specializes in investing at the Series A stage and focuses primarily on software companies, including B2B marketplaces and vertical software, TechCrunch reported Monday (Nov. 13).
This new fund further strengthens Interplay’s position in the market, bringing its total assets under management to $150 million, according to the report. The firm plans to invest in 20 companies with this fund, providing capital injections ranging from $1 million to $2 million per check, while also reserving additional funds for follow-on deals.
One of the key factors that sets Interplay apart is its consistent team of general partners, including founder and Managing Partner Mark Peter Davis, Kevin Tung and Mike Rogers, the report said. These partners have been investing together for over eight years and 50 deals.
Interplay also distinguishes itself by offering significant value to its portfolio companies, per the report. The firm’s studio enables it to incubate and start companies, expanding its reach and creating a strong deal flow.
Davis believes that the marketplace industry is undergoing a major shift toward specialization, with new companies offering tailored solutions for specific industries, according to the report.
Despite the challenges of fundraising in the current market, Interplay managed to secure commitments from institutional funds, fund of funds, family offices and founders within its portfolio, the report said.
Interplay remains disciplined in its deployment of capital, passing on opportunities that reflect over-excitement in the market, per the report. Instead, the firm focuses on companies with healthy and fair valuations. Davis believes that the current market presents attractive investment opportunities, as valuations have come back down to reasonable levels.
It was reported Sunday (Nov. 12) that venture capitalists have curtailed their startup investments due to rising interest rates, leading to investors raising enough to buy out the startups that VC firms have rejected.
In another recent development in the VC space, it was reported in October that JPMorgan Chase & Co., the largest bank in the United States, is aggressively positioning itself as the leading financial partner for startups, founders and venture-capital backers of tech companies in Silicon Valley.
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