Index holds $550m final close, promotes Shah to partner

José Rojo
04 February 2016

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Index Ventures has held a final close on $550m for its eighth early-stage fund after approximately two months on the road.

Index Ventures VIII went to market around November 2015, unquote" heard from a source close to the VC. The vehicle was oversubscribed when it hit its $550m target on 27 January, the same source added. The fund's size exceeds that of its predecessor. Launched in April 2014, Index Ventures VII closed on €400m in June that same year.

Over the past year, Index has not only been active fundraising for its venture fund portfolio, but also its growth capital vehicles.

In early April 2015, the VC closed its third dedicated growth vehicle on $700m, also after around two to three months of fundraising. According to regulatory filing published by the US Securities and Exchange at the time, the vehicle is based in Jersey and attracted 79 investors.

In conjunction with the fund close, the VC also promoted Shahdul Shah to partner.

A former associate at Summit Partners, Shah joined Index in 2008 and has since specialised in infrastructure, security and software assets as a principal at the VC. Having first worked from Index's European offices, he was transferred to the San Francisco team in 2013.

With his appointment, Index's US partner roster will count five people: Danny Rimer, Mike Volpi, Ilya Fushman and former Twitter CEO Dick Costolo, who was appointed to the role in January 2016.

Investors
According to an unquote" source, both Index Ventures VIII and Index Ventures Growth III were raised from an identical LP base; the investors were exclusively existing backers of the VC.

The group, featuring both US and European LPs, includes pension funds, funds-of-funds, insurers and college endowments, among others.

Investments
Index Ventures VIII will prioritise seed and series-A investments; put together, both categories will account for 70% of the fund's dealflow.

The vehicle will look to acquire stakes in the 20-25% region in early-stage technology companies. Targeted segments include mobile consumer, enterprise, networks and financial services.

People
Index Ventures – Danny Rimer, Mike Volpi, Ilya Fushman, Dick Costolo, Shardul Shah (partners).