B2B software-focused investor Arrowroot Capital Management is eyeing a massive size jump for its fourth flagship fundraise, less than a year after closing its predecessor vehicle.
The firm hauled in $177m for Arrowroot Capital III through a final close in November last year, just pipping its initial $175m target. But new documents filed by the California-based firm show it is now looking to collect up to $315m for Fund IV – and expects to have pulled in all the capital within the next 12 months.
Probitas Fund Group is acting as a placement agent for the latest fund, the SEC filing shows. No capital has been registered for the vehicle to date.
This fundraise marks the second time Arrowroot has significantly upped the stakes with its capital collecting activity. The firm pulled in $50m for its second fund in 2015, but quickly returned to raise more than three times that amount for Fund III.
Its predecessor has been targeting software companies in the lower mid-market, investing between $5m and $25m in each deal, aiming to capitalise on the funding gap between early stage venture capital and larger traditional private equity houses.
The firm has previously made a handful of investments into the FinTech space. Most recently, Arrowroot led the undisclosed investment into journey analytics platform ClickFox to help it scale across multiple new verticals.
Financial services can use ClickFox’s technology to optimise processes such as digital lending through the use of customer behaviour analytics to identify ways to drive more mortgage closures.
Other companies in its portfolio include cybersecurity platform Cygilant, asset performance solution 4tell and portfolio management automation software developer Keyedin.
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