Union Square Ventures raises $156M second fund

March 11, 2008 | Matt Marshall | Comments |

New York’s Union Square Ventures has raised a second fund totaling $156 million.

Partner Brad Burnham writes about the new fund here, saying it will continue with the same focus — early stage investments in media, marketing, financial services, health care and telecommunications sectors

Burnham said the environment has chanced since the firm raised money for its first $125 million fund four years ago — suggesting that the recession and numerous Web 2.0 companies require a difference in strategy, namely that the firm be more selective about the companies it backs.

Fred Wilson, another partner, and well-known blogger and investor in Web 2.0 companies, said the firm received backing from all its previous investors.

The company has seen three “exits,” or deals where its companies have been bought or gone public: Tacoda sold to AOL for around $300 million, Feedburner sold to Google for about $100 million, and Del.icio.us was acquired by Yahoo for an undisclosed amount.

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