JMI Equity closes $1.7B growth fund to invest in software companies

JMI Equity, a Baltimore and San Diego-based firm that invests in software startups, closed its 10th growth equity fund at $1.7 billion.

The firm said the fund was oversubscribed, and closed at its hard cap, meaning it was the maximum that the firm could raise. JMI said the fund was raised from state pension funds, sovereign wealth funds, family offices, endowments and foundations.

“We are excited to announce the closing of JMI X following an efficient and successful fundraise,” said Harry Gruner, JMI’s founder and managing general partner, in a news released issued on Monday. “With the strong support of our investors, we have secured the optimal amount of capital to execute our investment strategy over the next few years.”

Founded in 1992 and based locally out of Harbor East’s Legg Mason Tower, JMI focuses its investments on B2B software, investing approximately $20 million to $200 million. With this fund, it will primarily focus on companies based in North America, with revenue above $10 million. And it could be the first institutional capital for companies. From this fund, it has already invested in higher education-focused telehealth provider TimelyMD, healthcare software company PointClickCare, and sales enablement company Seismic Software.

The close comes after leadership changes at the firm. Earlier this year, Peter Arrowsmith was appointed to managing general partner, a role in which he serves alongside Gruner. Previous managing general partner Paul Barber shifted to the role of chairman. These came amid a series of hires and promotions announced over December and February.

Venture capital has continued to flow to companies in the pandemic and economic downturn, and such closes demonstrate that investors are continuing to raise fresh funds to deploy, as well.