RealTime IT News

idealab Lands $350 Million Second Round VC Injection

More than $350 million rolled in to idealab Capital Partners second round of financing, which closed on Monday. The funds will be invested in growing Internet companies.

Massachusetts Institute of Technology, Goldman Sachs, J.P. Morgan, and California Institute of Technology were among the contributors to the second fund. ICP principals and first round investors also returned for the second financing.

ICP's first round of financing in 1998 raised more than$105 million, which the company used to invest in 25 Internet businesses including GoTo.com (GOTO), eToys (ETYS), MP3.com (MPPP), NetZero, and CarsDirect.

"The caliber of investors that our success has attracted to the new fund validates our recognition of the Internet's future," said Bill Elkus, co-founder and managing director of ICP. "This growth enables us to consider more opportunities for larger and later stage company financings while maintaining our excellent track record for discovering and working with promising early stage Internet companies."

According to Venture One, the new funds have propelled ICP's ranking as a VC fund; it now stands as the largest such fund in southern California.