Pear, now almost 10 years old and full of success, looks set to close its biggest fund to date – TechCrunch
Pear, a joint venture company based in Palo Alto, Ca. which we’ve been tracking since its inception in 2012, appears to be raising a fourth fund targeting a $410 million capital commitment, indicating a Filing with the SEC.
That would be a big step up from Pear’s first three funds, which closed with $50 million in 2013, $75 million in 2016 and $160 million in capital commitments in 2019, including from a longtime limited partner, the University of Chicago.
Reached for comment, co-founder Pejman Nozad emailed back, “I can’t comment!”
Nozad and co-founder Mar Hershenson have long been the first stop for prominent early-stage investors looking to fund start-up teams, as the company is one of its backers. Early adopter of several notable companies that have raised larger and higher valuations, including now publicly traded companies DoorDash and Guardant Health.
Other startups to solicit capital from Pear before nearly any other company even knew of their existence included Deep Link Startup Affiliates, which closed in 300 million dollars funding in February at a $4 billion valuation; Gusto, was valued at $9.5 billion last summer when it raised capital 175 million dollars in funding; and Aurora Solar, a company that provides software services to the solar industry and was valued at $4 billion in February when it closed. 200 million dollars ring.
Like other companies, Pear is likely to see the valuations of companies with private portfolios still slide down – possibly much – depending on how long this adjustment lasts.
Hershenson, who joined TechCrunch for a mobility-focused event this week, noted onstage that startups are on a bumpy road, as the market has evolved. any.
When asked if the kick-off party is over, Hershenson replied: “Perhaps in a short while it will be over. . The problem is that the market is overvalued in 2021, and we’re all adjusting to that price change, and that’s changing the way companies raise money.
“Everybody knows that the stock market drops a lot,” she said. “Software stocks are down 80% in some cases. [Meanwhile] if you were a private company and you were very lucky and you raised money in 2021, you could have gotten a 100x multiplier on your ARR. Today, those multiples are 10x or 20x. That means if your company is 2 billion dollars [at the time of your fundraise]Is your company? [now] $200 million worth:
Still, even with the price plummeting, Pear’s success so far is undeniable. It’s also not certain.
Nozad, very famous, was formerly a carpet dealer who insisted on bringing toting rugs to his client’s home, where in the course of a long conversation they would learn about the carpet and he would find understand their business. He eventually becomes a spy for his boss, and a trusted friend of some very powerful people.
“He’s got a good sniffer, and I trust him,” Sequoia’s Doug Leone tell Forbes back in 2012. “He’s like me, from the earth.” In fact, Sequoia has backed a number of companies Pear has funded, including Guardant Health and DoorDash.
Meanwhile, his partner, Mar Hershenson, also proved to be a lot less capable when the two hit each other on their own. Despite having founded several companies before – one of which is backed by Nozad – and although she holds an MS and Ph.D. an electrical engineer graduate from Stanford University, she’s Hispanic and even more unusual in the VC world a decade ago, she’s a woman who hasn’t had her teeth cut at a joint venture before. someone else’s business.
That might not seem remarkable today, but in 2012 it catapulted Hershenson into a rare company.
As for the team’s latest bets, Pear held an invite-only demo day earlier this week, information we’ll have for our readers soon. (Unlike Y Combinator, Outfit hosts a demo day each year for a relatively limited number of companies — usually around 10.)
In the meantime, some of its other recent checks have passed to Sudozi, a two-year-old startup in Austin, Tex., that provides a SaaS platform to help businesses improve manageability their money and just this month announced 4.3 million dollars ring beads led by Le.
Pear also recently wrote a follow-up test for Osmind, a two-year-old Bay Area-based startup that makes software for charting and updating patient information and documents. focus on mental health. Raised Outfits $40 million in Series B funding led by DFJ Growth, an announcement it also made earlier this month.
Correction: This story originally reported that Pear’s latest fund was closed, a criminal, which is incorrect; We’ve updated the story to reflect that the fund is still being raised.