RTP Global holds final close for fourth fund on USD 1bn

The fund represents an increase of more than 50% on the firm’s previous fund, according to an announcement. RTP III held a close on USD 650m in March 2020.

The new fund will be deployed across North America, Europe, India and Southeast Asia, while earmarking USD 660m for early-stage investments and USD 340m to provide ongoing support to RTP IV's ‘breakout’ portfolio companies.

The firm’s early-stage investments include Ney York City-headquartered monitoring and security platform for cloud applications Datadog, Germany-based online food ordering service Delivery Hero and Indian finthech company Cred, a rewards-based credit card payment app.

Other investments in Europe include from RTP III include London-based credit card startup Yonder and France-based B2B payment infrastructure provider Fintecture.

The capital for the new fund derives almost entirely from the reinvestment of proceeds from RTP Global’s previous investments. To date, the New York-headquartered firm has invested in more than 110 startups with one in 10 becoming multi-billion dollar businesses, according to the statement.

Investments
Historically the firm has invested anywhere up to USD 15m as an initial investment, partner Gareth Jefferies told Unquote.

“We take pride in being flexible capital partners if we need to flex up or down in initial rounds, where we typically enter at the Seed or Series A,” he said.

The firm does not have a strict minimum ownership requirement but its sweet spot is acquiring 15%-20% stakes in startups alongside taking board seats or at least observer seats. Its approach allows it to be more flexible than most, especially at the earliest stages, as it usually holds back a lot of the fund for follow-ons, he said. The firm is also willing to buy ownership in later rounds, he added.

Over the course of the fund’s deployment period, it will target roughly 20 investments in each of the three regions where it operates, which roughly translates to around seven investments per region, per year, he said.

The firm has not made any investments from RTP IV yet, he added.

Looking ahead, the firm aims to continue partnering with other VC firms, similar to the way it co-led the Series A round for Datalog in 2012 with Index Ventures. In the most recent fund, RTP III, it co-invested alongside Accel, Sequoia, Lightspeed, Bessemer, Insight, Northzone and others, said Jefferies.

“We're big believers in productive collaboration and we hope to continue these great working relationships in the new fund and beyond,” he said.

People
RTP Global − Alex Pavlov (investment partner in Europe), Gareth Jefferies (partner).

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