Photo by Invest Europe on Unsplash
CRV, the 55-year-old venture capital firm behind early bets on DoorDash, Mercury, and Vercel, just raised a new fund — but this time, they trimmed it down. Instead of another billion-dollar pool, the firm locked in $750 million for its twentieth flagship fund.
And here’s the kicker: they closed the fund in just four weeks.
After decades in the VC game, you might expect CRV to keep scaling up. But in a market where valuations are all over the place, they’ve decided to take a more disciplined route — smaller fund, sharper focus, and no more chasing late-stage rounds.
Let’s break down what’s going on and why it matters, especially if you’re building something early-stage.
From $1.5B to $750M — With Intention
In 2022, CRV closed a $1 billion early-stage fund along with a $500 million “Select fund” focused on later-stage backing for existing portfolio companies. But things didn’t quite go as planned.
Last year, the firm made headlines when it returned $275 million from its Select fund back to investors. Why? They didn’t believe the late-stage investment environment would deliver healthy returns. In other words, growth-stage valuations felt too high to make sense.
Photo by Dan Taylor on Unsplash
Fast forward to today, CRV is staying true to its roots: seed and Series A. This new $750 million fund dials in on what they say they do best — getting in early, when it matters most.
Investors Showed Up Big Time
Even with the smaller fund size, interest from limited partners didn’t shrink. In fact, CRV said they could’ve raised double the amount. Still, they chose to stay lean, signaling a return to focus over flash.
They’re not trying to take every shot — just the right ones.
What CRV Wants to Fund Next
So, where’s that $750 million going?
CRV says it’s laser-focused on two types of companies:
- Consumer startups
- Developer tools (better known as “devtools”)
That’s no big surprise if you look at their track record. They were behind the seed round for DoorDash — now synonymous with food delivery — and participated early in companies like Vercel, which builds powerful tools for web developers.
CRV has backed over 750 startups since launching in 1970. Eighty of those have gone public, so they’re not new to this early-stage game.
Recent Bets: AI in Code and Cybersecurity
CRV’s recent moves also give us a glimpse of where they see value right now.
Photo by Dan Taylor on Unsplash
Take CodeRabbit, for example — an AI-powered code review startup they backed. Or Outtake, which uses artificial intelligence to improve cybersecurity.
Together, these picks point to a strategy that blends deep tech with real-world impact. CRV seems to be looking for companies that help developers and teams work smarter, safer, and faster.
The Takeaway
In a time when VC firms often try to go bigger and bolder, CRV is doing the opposite. They’re pulling back, focusing in, and sticking to what’s worked over five decades: backing early-stage founders with strong ideas and staying out of overpriced later rounds.
If you’re building something scrappy in the consumer or devtools space, CRV might just be the kind of investor you want in your corner — experienced, focused, and ready to back the early days.
And if nothing else, their $750 million move is a reminder that sometimes, doing less is about getting more right.
Keywords: CRV, venture capital, startups, early-stage funding, consumer startups, developer tools, devtools, AI, cybersecurity
