The raise, which surpassed its target, timed with the 15-year anniversary of Riverwood Capital.

Riverwood Capital, a Menlo Park-based investment firm specializing in high-growth technology companies, recently concluded its largest fundraising round, amassing $1.8 billion in new commitments. The 15-year-old company secured investments from diverse sources, including pension funds, hospital systems, foundations, endowments, insurance companies, and family offices.

Operating from offices in California, Miami, New York, and Sao Paulo, Riverwood has successfully invested in 75 companies primarily in the Americas, featuring notable names like GoPro, 99, Globant SA, VTEX, Nextdoor, and iFLY. While not disclosing specific fund performance, the firm highlights an impressive average annual revenue growth of 40% across its portfolio.

As of the third quarter’s end, Riverwood manages assets totaling around $6 billion.

The firm distinguishes itself by prioritizing business fundamentals and scalability, in contrast to momentum-driven investors that are not overly concerned with value investing. It adopts a growth-stage investment strategy, akin to private equity, focusing on companies demonstrating a clear path to profitability. In 2023, the company led investment rounds for Cognosos, InvGate, SpyCloud, Hyperproof, and Logcomex, showcasing its diversified portfolio.

Riverwood remains positioned to leverage the upside of high-growth profiles while mitigating venture risks. In a strategic shift, the company has aligned its capital deployment in favor of proven companies, underlining its nuanced investment philosophy.

“The acceleration of tech transformation globally is undeniable,” says the firm.

Related Story: Menlo Ventures Arms Itself With $1.35B Warchest For AI Investments

Image by S K from Pixabay