Former Tiger World Administration government Lee Fixel has raised a $1.4bn enterprise capital fund lower than 4 months after securing his first car, an unusually fast tempo that factors to exuberance out there for start-up investments.
Mr Fixel’s agency, Addition, disclosed it had raised the second fund in a regulatory submitting on Friday. He doesn’t plan to start investing the capital till subsequent yr, mentioned folks briefed on his plans. Addition declined to remark.
The fundraising comes as enterprise capitalists decide up their tempo of funding following a short lull through the early levels of the pandemic.
Within the US, start-ups raised greater than 220 rounds of funding bigger than $100m within the third quarter, in keeping with the info supplier PitchBook, placing this yr on tempo to set a brand new document for “mega-rounds”.
Corporations that assist staff work remotely or present digital healthcare providers have benefited specifically, fielding outsize curiosity from enterprise capitalists.
Mr Fixel has made an auspicious debut with Addition, hanging offers in a dozen firms for the reason that onset of the pandemic within the US, in keeping with PitchBook knowledge.
In August, Addition led a $110m funding spherical within the tele-health start-up Lyra Well being that valued the corporate at $1.1bn. Final month, the fund led a $200m financing for the cyber safety start-up Snyk, valuing it at greater than $2.6bn.
Each firms raised cash earlier within the yr earlier than Mr Fixel got here in to guide the brand new funding rounds.
Mr Fixel, who beforehand oversaw personal investments for New York-based Tiger World, raised $1.3bn for Addition’s first car in June, almost setting a document for the most important new enterprise capital fund.
At Tiger World, Mr Fixel turned identified for early investments in start-ups such because the health firm Peloton, whose fortunes have soared through the pandemic, bringing its market capitalisation to just about $40bn.
Mr Fixel additionally drew consideration for investments in Indian start-ups corresponding to Flipkart, which bought a majority stake to Walmart in a $16bn deal. Addition doesn’t plan to spend as a lot time on Indian investments, mentioned one particular person aware of the agency’s pondering.