Bessemer Venture Partners

Bessemer Venture Partners is one of the oldest and most established venture capital firms in the world, with a history tracing back to the industrial fortune of the Phipps family. The firm manages over $20 billion in assets and invests across stages from seed to growth, with a global presence spanning the United States, India, and Israel. Known for its thematic investment approach and long-term partnership with entrepreneurs, it has backed numerous iconic companies that have defined the technology landscape.

History

The firm's origins are deeply rooted in the legacy of Henry Phipps Jr., a partner of Andrew Carnegie in the Carnegie Steel Company. Following the landmark sale of that company to J.P. Morgan, which formed U.S. Steel, Phipps founded the Bessemer Trust in 1911 to manage the family's wealth. The venture capital practice emerged in the 1970s as the trust began making direct investments in innovative startups, formally becoming Bessemer Venture Partners. Its early bets included pioneering companies in sectors like biotechnology and computer hardware, establishing a tradition of funding foundational technology shifts. Over decades, the firm evolved from a family office into an institutional venture capital powerhouse, opening offices in Menlo Park, Boston, New York City, Bangalore, and Herzliya.

Investment focus

The firm invests primarily in technology-enabled businesses across several core domains, including cloud computing, fintech, consumer internet, and healthcare IT. It employs a sector-focused strategy where partners develop deep expertise in specific verticals, publishing influential reports like the "Cloud Computing Laws" and "State of the Cloud." Geographically, while maintaining a strong focus on the United States, it has built dedicated teams and funds for the vibrant startup ecosystems in India and Israel. The investment scope ranges from early-stage seed funding to later-stage growth equity, allowing it to support companies throughout their lifecycle from inception to initial public offering.

Notable investments

The firm's portfolio features a remarkable number of industry-defining companies and unicorns. Its early successes include investments in Ciena, Staples, and VeriSign. In the internet era, it backed transformative companies such as LinkedIn, Yelp, Pinterest, and Shopify. More recent notable investments span a diverse array of sectors and include Twilio in cloud communications, Procore in construction software, Toast in restaurant management, and DocuSign in electronic agreements. Its global reach is evidenced by key investments like Swiggy in India and Wix.com in Israel.

Investment philosophy

Central to its approach is a commitment to being "entrepreneur-first," positioning itself as a long-term partner rather than a passive financier. The firm is known for its public "Anti-Portfolio" list, which humorously acknowledges famous companies it declined to invest in, such as Apple, eBay, and Google, emphasizing the challenging nature of venture selection. Investment decisions are guided by thematic, forward-looking theses about technological disruption, often developed from its extensive research. Partners typically take board seats and work closely with founders on strategy, scaling operations, and navigating the path to IPO or acquisition.

Leadership and team

The firm is led by a large partnership of experienced investors, many of whom have operational backgrounds as founders or executives. Notable long-tenured partners include David Cowan, a founding investor in VeriSign and LinkedIn; Byron Deeter, a leading authority on cloud computing and SaaS investments; and Ethan Kurzweil, who focuses on enterprise software. The leadership in its international offices includes Anant Vidur Puri in India and Adam Fisher in Israel. The team structure emphasizes collaborative due diligence and decentralized decision-making within sector specialties.

Recognition and rankings

It is consistently ranked among the top-tier venture capital firms globally by industry publications like Forbes in its Midas List and CB Insights. Individual partners frequently appear on the Midas List, which recognizes the top venture capital investors worldwide. The firm's success in generating returns through multiple economic cycles and its role in building category-leading companies have cemented its reputation for institutional quality and endurance. Its thought leadership, particularly in the cloud computing sector, is widely cited by entrepreneurs and investors across the technology industry. Category:Venture capital firms of the United States Category:Companies based in San Francisco Category:Financial services companies established in 1911