Zynga Investor Raising $1 Billion for New Fund

Institutional Venture Partners, an investor in Internet companies like Zynga (NASDAQ:ZNGA), Twitter, and LivingSocial, is planning to raise $750 million to $1 billion by June for its next fund.

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Venture capital firms, such as Revolution LLC and Lightspeed Venture Partners, have now shown interest in funding web companies, and IVP is no exception. These firms are raising new funds after the biggest year in initial public offerings in more than a decade. Revolution and Lightspeed are also investors in LivingSocial.

IVP focuses on more mature startups, and turned an investment of $13 million into $475 million after the company sold shares of Zynga to the public in December. Currently, IVP owns $170 million investment in vacation-rental site, HomeAway (NASDAQ:AWAY), which went public in June.

So far, IVP hasĀ raisedĀ $400 million by investing in LivingSocial, while Dropbox Inc. raised $250 million. In addition to making sound investments by investing in Twitter since 2009, IVP has raked in $150 million through the online discounter WhaleShark Media Inc.

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To contact the reporter on this story: Diallah Haidar at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com