Fidelity Closes Nearly $760M Venture Growth Fund
Fidelity Investments has closed Fidelity Venture Growth Fund II with nearly $760 million in commitments, topping its $750 million target.
The fund closed Nov. 2 after raising about 96% of its target in just two months. Investors included high-net-worth individuals, family offices, registered investment advisers and broker-dealers.
Fund II will make mostly direct minority investments in mid- to late-stage private companies worldwide, with an emphasis on the U.S. and the technology, media and telecommunications sectors.
The strategy mirrors Fidelity Venture Capital Fund I, the firm’s first dedicated venture fund, which closed at $250 million in 2024 after a four-month raise. Its early investments included SpaceX, CoreWeave and Anduril. Fund I was fully invested less than two years after its final close and has made meaningful early distributions to investors. Fidelity said it ranked in the top 5% of U.S. venture funds of its 2024 vintage through June 30, citing Cambridge Associates data.
Karin Fronczke, Fidelity’s global head of private equity investments, manages both funds.
“As private companies stay private longer and reach greater scale before going public – some even exceeding trillion-dollar valuations – this strategy provides our clients with access to some of the most compelling growth opportunities unfolding in the private markets,” Fronczke said.
Over nearly two decades, Fidelity funds have invested more than $40 billion in more than 400 private companies and seen about 250 exits, most often through initial public offerings, the firm said.
The close stands out in a tough venture fundraising market, where capital is concentrating in large, established managers. U.S. venture funds raised $108.5 billion through the third quarter, with funds of $500 million or more capturing 78.1% of that total while making up just 6% of funds closed, according to PitchBook and the National Venture Capital Association.
The raise follows Fidelity’s September close of its Real Estate Debt Opportunities Fund II at about $451 million.
Pictured: Karin Fronczke