What Startup Winter? Union Square Ventures Is Raising a $150 to $200 Million Fund

Equity moves everything around me.

Early last month, based on the volatility and vagaries of the public market,  Union Square Ventures’ partner Albert Wenger urged startups to go out and get that VC paper “ASAP” while they still could. Well, soon enough, those startups may be able to get it from USV. The Wall Street Journal reports that the firm is talking to its current base of investors about raising another $150 to $200 million fund to invest in tech startups that could close as early as the end of the year.

One could say that USV partners like Fred Wilson took Mr. Wenger’s advice about raising money before the “startup winter” freezes the capital markets, except that USV, which was an early investor in Twitter, Zynga, Foursquare, Tumblr, and more recently 10gen and Turntable.fm, is in a different league. While some VCs have had a tough time raising recently, an anonymous investor told the Journal,

“[USV] just have to call their [investors], and that’s all the marketing that they have to do. Everyone wants in.”

The same went for Valley firms like Accel Partners and Sequoia Capital, which also raised recently. But the local venture capital class warfare comes into play with new investors that want to get into the fund, if USV allows it.
“Union Square is such a hard fund to get into,” said one venture investor who has been trying to gain access to the firm for the last seven years. “I have their private-placement memorandum from 2004 on my desk to remind of the one that got away.”
What Startup Winter? Union Square Ventures Is Raising a $150 to $200 Million Fund