NEA Closes On Two Funds Totaling $6.2 Billion
January 26, 2023
Largest Pool of Capital in Firm’s History to Fuel Continued Investment in Technology and Healthcare Companies Across Stage, Sector and Geography
Menlo Park, CA and New York, NY — Jan. 26, 2023 — New Enterprise Associates, Inc. (NEA) today announced that it has closed on approximately $6.2 billion across two funds, bringing the firm’s assets under management to over $25 billion as of December 31, 2022. The new pair of funds marks a first for NEA, with one dedicated to early-stage investing and the other to venture growth-stage opportunities, reflecting the 45-year-old firm’s continuous evolution of its model over decades.
Both funds will be invested across a broad range of technology and healthcare sectors, including enterprise and consumer technology, digital health and life sciences. Consistent with the firm’s strategy over many funds, investing activities will span the entire lifecycle of company building, from incubation and seed-stage investments to fueling the growth of market leaders.
“We are deeply grateful to our Limited Partners for the trust they have placed in our team, and excited to have raised the largest pool of capital in NEA’s history at a time of great uncertainty, but also tremendous opportunity,” said Scott Sandell, Managing General Partner, NEA. “Our own performance over decades strongly affirms the importance of both peaks and troughs in a healthy ecosystem for innovation and company building, and we look forward to supporting founders at every stage with both the capital and the cycle-tested expertise NEA has always brought to bear in tough times.”
NEA’s history of steadily investing in both technology and healthcare through challenging economic environments spans decades, resulting in a deeply experienced team and affirming that innovation cycles, not market cycles, are among the most important in fueling long-term success. Working alongside founders to build strong companies that can survive and thrive in any market is a hallmark of NEA’s approach, and the firm believes that the innovation unfolding across its core sectors of focus will create abundant opportunities for investment across its new funds.
“As technology transforms every industry globally, we see an expanding opportunity set at both the early and growth stages that our team is exceptionally well-positioned to execute on given our deep domain expertise across core sectors of innovation including software, infrastructure, fintech, next-generation web technologies and artificial intelligence,” said Tony Florence, Managing General Partner, Technology.
“Healthcare innovation has never been more important than at this moment in time,” said Mohamad Makhzoumi, Managing General Partner, Healthcare. “With the industry on the precipice of dramatic change, we are eager to build on NEA’s enduring legacy of creating and investing in the next generation of tech-enabled healthcare disruptors and transformational life sciences companies.”
Sandell, who has led NEA’s investments in a broad range of technology companies for nearly three decades, enters his third investing cycle as the firm’s managing general partner with the new funds. NEA’s core investing practices will continue to be led by Tony Florence, Managing General Partner, Technology; and Mohamad Makhzoumi, Managing General Partner, Healthcare. Florence and Makhzoumi joined the firm in 2008 and 2005, respectively, and were elevated to their current roles in 2021. The long tenure among NEA’s leadership team reflects a focus on mentorship and emphasis on promoting from within that spans decades. Each of the firm’s general partners was promoted to their current role, with an average tenure of 17 years.
New Enterprise Associates, Inc. (NEA) is a global venture capital firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors and geographies. Founded in 1977, NEA has over $25 billion in assets under management as of December 31, 2022 and invests in technology and healthcare companies at all stages in a company’s lifecycle, from seed stage through IPO. The firm's long track record of investing includes more than 270 portfolio company IPOs and more than 450 mergers and acquisitions. For more information, please visit www.nea.com.
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