While some firms struggling to adjust to the new venture capital market have thrown in the towel or reflexively focused on consumer Internet investments, Institutional Venture Partners has gone the other way.

Its tenth fund focused for the first time on late stage investments. For its eleventh fund, it added in recapitalizations and shareholder liquidity deals and eventually also, large rollup plays and spinoffs. IVP will continue to pursue this strategy for the $600 million twelfth fund it closed last week.

And why not? The strategy seems to be working. Half of its 42 investments are operating profitably and 24 are recording revenue of more than $50 million. Two of its biggest bets from the previous fund are online vacation rental rollup HomeAway, which has raised $160 million, and Cortina Systems, which has raised $132 million. IVP led every one of the investments from its eleventh fund.

IVP general partner Todd Chaffee told The Deal's Clifford Carlsen the new fund will be about 60% in venture growth investments, 20% in rollups, 10% in recapitalization deals to cash out early investors and 10% in PIPE investments in publicly traded companies.

For more on IVP's new fundraising, see:
The Deal
IVP press release (pdf)

Tags: ivp, vc, venture+capital