Union Square Ventures has just launched a later-stage funding initiative called the Opportunity Fund. The reason behind the launch is two-pronged. First, USV is known to specialize in early stage investing but becomes scarce after companies have developed portfolios. So the Opportunity Fund lets the VC firm take part in the action while their clients grow. Second, early stage investing has become a crowded scene lately, so USV is looking for broader opportunities.
The creation of the fund, whose existence first leaked in 2010 after an SEC filing, has brought a new investment veteran aboard as a USV partner. John Buttrick cut his teeth in the legal profession until switching careers ten years ago. Buttrick has used his expertise in mergers and acquisitions advising USV since the VC firm’s beginning. Having worked in Paris, Belgium, and New York, it is believed Buttrick can add fresh perspective to the “stage-agnostic” Opportunity Fund.
Fred Wilson enumerated the fund’s goals on his A VC blog. They are:
“1) continue to invest in our most established and successful companies.
2) invest in more established networks that have been funded initially by others.
3) invest in special situations like the spin out of a network of scale, and
4) respond to attractive opportunities as the broader market continues to evolve.”