Matrix Partners

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Matrix Partners
Company type Private ownership
Industry Private equity
PredecessorHellman Ferri Investment Associates (1977 to 1982)
Founded1977
Founder Paul Ferri
Headquarters Palo Alto, California, US
AUM $4 billion (2019) [1]
Website www.matrixpartners.com

Matrix Partners is a US-based private equity investment firm focusing on venture capital investments. The firm invests in seed and early-stage companies in the United States and India, particularly in the software, communications, semiconductors, data storage, Internet or wireless sectors.

Contents

The firm is headquartered in Palo Alto, California, and has offices in Cambridge, Massachusetts; Mumbai, India; and Beijing, China.

History

Founded in 1977, Matrix was an active player in the development of the venture capital industry in the 1980s. The firm's direct predecessor, Hellman Ferri Investment Associates [2] (1977 to 1982), was founded by Paul J. Ferri and Warren Hellman. In 1982, Ferri and Hellman split ways and Ferri went to focus on early-stage companies, forming Matrix in Boston, Massachusetts while Hellman founded the San Francisco-based private equity firm, Hellman & Friedman which focused on later-stage firm investments. [3]

Among the firm's notable investments, Matrix Partners was an early-stage investor in Apple Inc., Arrowpoint Communications, Digium, JBoss, JustFab, PSINet, SanDisk, Silverstream Software, TheLadders.com, Sonus Networks, Tivoli Software, Tollbridge Technologies, VERITAS Software, Vermeer Technologies Incorporated, and Xilinx.

In 1985, Matrix raised its first institutional private equity fund. In 2001, Matrix Partners completed fundraising for Matrix Partners VII, a $1 billion venture capital fund. [4] In 2006, Matrix raised Matrix Partners VIII fund, with $445 million of investor commitments. [5] In 2006, Matrix also raised a separate $150 million India fund. [6] [7] In July 2009, Matrix raised Matrix IX fund with $600 million. [8] As of 2018, the firm has raised eleven U.S venture capital funds and five China focused funds. [9] In November 2021, The Wall Street Journal reported that Matrix Partners is a major investor in Chinese semiconductor firms, raising U.S. national security concerns. [10]

In July 2024, Matrix Partners announced a renaming and organizational update, with its Indian arm becoming DZ47 (with the brand name of Z47) and its Chinese arm becoming MPC, while the U.S. operations will continue under the Matrix brand. [11] The firm stated that the "decision to rename is driven by a shared commitment to clarity in the marketplace, responsiveness to regional market dynamics and a continued focus on competing locally, which will benefit each organization’s respective portfolio companies, investors, and partners."

Investments

In August 2023, the firm led a $3.5 million seed round for Wootz.work global sourcing platform for custom engineering equipment and solutions. [12]

In May 2023, the firm’s Indian arm extended its then current fund from $450 million to $525 million for the South Asian market. [13]

In April 2024, AI platform SiftHub raised $5.5 million in a round led by Matrix Partners India and Blume Ventures. [14]

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References

  1. ↑ "About".
  2. ↑ "A Casual Approach to Success – Alumni – Harvard Business School". www.alumni.hbs.edu. March 2003. Retrieved September 21, 2018.
  3. ↑ "Exclusive: Matrix Partners raises new VC fund". Fortune. Retrieved September 21, 2018.
  4. ↑ $1bn fund for Matrix Partners Archived December 1, 2008, at the Wayback Machine . AltAssets, 2001
  5. ↑ Matrix makes plans for $445m fund.(Matrix Partners raises funds for its new fund Matrix Partners VIII). Private Equity Week, 2006
  6. ↑ Matrix Partners closes India fund on $150m Archived October 16, 2006, at the Wayback Machine . AltAssets, 2006.
  7. ↑ Matrix Closes New India Fund. New York Times, 2006
  8. ↑ "Matrix Partners › Press Room › Matrix Partners Closes New $600 Million Matrix IX Fund". www.matrixpartners.com. Archived from the original on August 9, 2009.
  9. ↑ "Xconomy: Matrix Partners Holds Steady with $450M Fund, as Other VCs Go Big". Xconomy. June 21, 2018. Retrieved September 21, 2018.
  10. ↑ O'Keeffe, Kate; Somerville, Heather; Jie, Yang (November 12, 2021). "U.S. Companies Aid China's Bid for Chip Dominance Despite Security Concerns". The Wall Street Journal . ISSN   0099-9660 . Retrieved November 12, 2021.
  11. ↑ "Matrix Shares Naming Update". matrix.vc. Retrieved September 19, 2024.
  12. ↑ "Engineering equipment startup Wootz.work raises $3.5M in seed funding led by Matrix Partners India, Nexus Venture Partners". FInancial Express. August 22, 2023. Retrieved June 14, 2024.
  13. ↑ "Matrix Partners extends India fund target to $525 million". The Hindu Business Line. May 23, 2023. Retrieved January 3, 2024.
  14. ↑ "AI platform SiftHub raises $5.5m in funding". The Economic Times. April 4, 2024. Retrieved June 4, 2024.
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