DFJ Growth

DFJ Growth is a prominent venture capital firm specializing in growth-stage investments, operating as an affiliate within the broader Draper Fisher Jurvetson network. The firm targets established, high-potential technology companies that are scaling rapidly and require significant capital to accelerate their market expansion. With a focus on sectors like enterprise software, consumer internet, and financial technology, it provides not only funding but also strategic guidance to help portfolio companies navigate critical growth phases. Its investment philosophy centers on partnering with visionary founders to build category-defining, enduring businesses in dynamic markets.

History

The firm was established in 2006 by Barry Schuler, a former CEO of America Online, and John Fisher, a longtime partner at Draper Fisher Jurvetson. It was founded to address a specific gap in the venture capital landscape, focusing on later-stage companies that had moved beyond the initial Series A or Series B funding rounds and needed substantial growth capital. The firm leveraged its association with the Draper Fisher Jurvetson network, which was renowned for early-stage bets on companies like Hotmail and Skype, while carving out its own identity in the growth-equity segment. Over the years, it has built a reputation for its disciplined approach to scaling businesses, navigating various economic cycles including the 2008 financial crisis and the subsequent technology boom.

Investment focus and strategy

The investment strategy is centered on providing growth equity to technology companies that have achieved significant product-market fit and are generating substantial revenue, typically in the range of $20 million to $100 million annually. It primarily invests in sectors such as enterprise software, cloud computing, cybersecurity, digital health, and fintech, avoiding capital-intensive industries like biotechnology or clean technology. The firm typically leads or co-leads investment rounds, often Series C or later, writing checks ranging from $20 million to $50 million. A key aspect of its strategy involves taking board seats and working closely with management teams on operational scaling, international expansion, and strategic mergers and acquisitions, aiming to build durable market leaders rather than pursuing quick IPOs.

Portfolio companies

The firm's portfolio includes a number of high-profile companies that have achieved significant scale and market recognition. Notable investments have included Twitter (prior to its IPO), Box, SolarWinds, Tumblr, and Adyen. In the enterprise software space, it has backed companies like Anaplan, Intercom, and SendGrid. Its consumer internet holdings have featured names such as Foursquare and Ring, the latter being acquired by Amazon. The portfolio demonstrates a consistent theme of investing in platforms that redefine how businesses or consumers interact with technology, with several companies having successful exits via acquisition or public listing on exchanges like the New York Stock Exchange and NASDAQ.

Leadership and team

The firm is led by a small, experienced team of investment professionals. Co-founder Barry Schuler serves as Managing Director, bringing his operational experience from America Online and Time Warner. Co-founder John Fisher also serves as Managing Director, contributing his deep venture capital background from Draper Fisher Jurvetson. Other key partners have included Mark Bailey and Randy Glein, who have held leadership roles and board positions at numerous portfolio companies. The team is known for its hands-on, collaborative approach, often leveraging its extensive network within the Silicon Valley ecosystem and drawing on prior experiences at firms like Kleiner Perkins and Goldman Sachs to support company growth.

Funds and performance

The firm raises capital from a global base of institutional investors, including endowments, pension funds, sovereign wealth funds, and family offices. It has closed several dedicated growth funds, with its 2014 vintage fund, **DFJ Growth 2014**, and a subsequent 2018 fund being particularly notable. While specific returns are privately held, the firm's performance is generally benchmarked against the broader venture capital and growth equity industry, with successful exits from companies like Box and Ring contributing to its track record. Its funds are structured as traditional limited partnerships, with a typical investment horizon of seven to ten years, aiming to deliver top-quartile returns to its limited partners through a concentrated portfolio strategy.