California-based early seed fund and accelerator program, 500 startups has raised $85 million in its third round of global funding.
The firm had targeted $100 million for this fund.
According to Dave McClure, on of its founders, “It wasn’t an easy road, U.S. institutions took exception with the firm’s “index fund” approach to venture capital and the small stakes it takes in companies, among other reasons.”
The partners in the fund include Tokyo-based Dentsu, Yahoo Japan and Malaysia Venture Capital Management Berhad, a venture firm backed by the Malaysian government.
The company states that all of the three 500 Startups’ main funds had a net investment rate of return of about 20% at the end of the second quarter. The firm is already eyeing to raise its fourth global fund and a growth fund of about $200 Mn each.
500 startups aims to invest in about 350 to 400 startups this year and it has chosen two new African startups, SweepSouth and Kudobuzz , for its 14th round of 500 Startups Accelerator Program. It has already invested in about 1,200 startups in the past, including Ghanaian Dropifi which became the first African startup in 2013.
