Iconiq raises $5.15 billion for its seventh flagship fund

On By Vaseline

Co-founders of Pigment

Image credits: Pigment

Iconiq Capital has raised $5.15 billion through two funds related to the seventh growth fund family, according to SEC filings.

The company, which launched in 2011 as a private office that managed the capital of some of the most prominent and wealthiest people in the tech sector, including Mark Zuckerburg and Jack Dorsey, originally targeted $5.75 billion, according to information from the New Mexico State Investment Council, the Wall Street Journal reported in March 2022. It is unclear if the company is still raising capital to achieve its goal.

Iconiq did not immediately respond to a request for comment.

The fund size is a substantial increase over Iconiq’s Fund VI target of $3.75 billion.

Iconiq’s latest fundraising is impressive considering that many other major growth investors have fallen far short of achieving their goals. Notably, Tiger Global closed its latest venture capital fund at $2.2 billion, the firm’s smallest fund since 2014. Bloomberg reports this. Tiger initially planned to raise $6 billion, less than half of its predecessor $12.7 billion the company closed in March 2022.

The two giant funds are not in exactly the same position. Tiger global was widely criticized for investing capital too quickly at exuberant prices during the tech boom of 2020 and 2021 (although the idea that overpayment was always pushed back). And unlike Tiger Global, which has been actively selling secondary holdings to achieve liquidity, Iconiq has been looking for secondary positions, according to two sources.

Iconiq’s substantial fundraising likely means its backers are relatively satisfied with the company’s investment strategy.

Iconiq has completed several dozen exits from its portfolio in recent years, including the IPOs of Snowflake, Airbnb, GitLab and Hashicorp, according to PitchBook data. In 2023, Iconiq invested $1.1 billion in 22 companies, it says, and includes his wallet startups like Drata, Kanva, Driveway, ServiceTitan, author And Pigment.

The company’s fund VII-B has raised $3.06 billion of 219 investors, while fund VII-B closed at $1.26 billion from 462 donors, according to registrations with the regulators.

Iconiq seventh vehicles will according to the Buyouts Insider Report based on the New Mexico Investment Council meeting in March 2022.