Endeavor Catalyst raises $320 million for fifth venture fund

Venture investor Endeavor Catalyst completed its fifth fundraising with capital commitments of $320 million, taking total assets under management above $850 million. The team plans to use the new fund to invest in up to 150 companies, making 40 to 50 investments annually over the next few years.

The investor operates as the venture arm of Endeavor, a global nonprofit based in New York that supports entrepreneurs outside major technology hubs. Endeavor serves as the general partner. Co-founder Linda Rottenberg said half the fund’s profits return to the nonprofit to support other founders.

Companies qualify for investment after their founders join Endeavor’s network and they raise at least $5 million in financing led by another institutional investor. Endeavor Catalyst then can participate on the lead investor’s terms. Its team said investments typically range from $1 million to $3 million and are capped at 10% of a financing round.

The new fund’s 400 limited partners include Reid Hoffman, hedge fund manager Bill Ackman and Dutch investment group Prosus. Managing partner Allen Taylor said about 30% of the backers are Endeavor founders, including founders of Nubank, Revolut and Checkout.com.

Taylor said Endeavor Catalyst has invested in 437 companies across 44 markets through its five funds, with 39 exits and 11 IPOs. He did not disclose cash-on-cash returns for the earlier funds. The firm said about 90% of its investments are outside the United States; Latin America remains its largest region, while Europe is growing fastest.