Peer, now nearly 10 years old and with countless hits, looks to be closing his biggest fund by far – TechCrunch

Pear, one in Palo Alto, Ca. established company we’ve been tracking since its inception in 2012 appears to be raising a fourth fund targeting $410 million in capital commitments, a new SEC filing shows.

It would be a big step up from Pear’s first three funds, which were phased out with $50 million in 2013, $75 million in 2016 and $160 million in capital commitments in 2019, including from long-term limited partner, the University of Chicago.

Co-founder Pejman Nozad, who was asked for comment, emailed back: “I can’t comment!”

Nozad and co-founder Mar Hershenson have long been the first stop for prominent fledgling investors seeking emerging teams, as the company has been one of the first backers to a remarkable number of companies that have raised ever-larger rounds and higher valuations. , including the now listed companies DoorDash and Guardant Health.

Other startups to raise capital from Pear before nearly every other company knew about their existence include the deep-linking startup Branch, which closed $300 million in funding in February at a $4 billion valuation; Gusto, valued at $9.5 billion last summer when it raised $175 million in financing; and Aurora Solar, a company that provides software services to the solar industry and was valued at $4 billion in February when it closed a $200 million round.

Like other companies, Pear is likely to see the valuations of its still private portfolio companies slide – possibly a lot – depending on how long this correction lasts.

Hershenson, who joined TechCrunch this week for a mobility-focused event, noted onstage that startups are in for a bumpy ride given how frothy the market had become.

When asked if the startup party is over, Hershenson replied, “Maybe it’s over for a while. † The problem is that in 2021 the market was overpriced, and we’re all adapting to that price change, and that’s changing the way companies raise money.

“Everyone knows that the stock market is collapsing,” she had said. “Software inventories have fallen by 80% in some cases. [Meanwhile] if you are a private company and you have been very lucky and you have raised money in 2021 then you may have gotten a multiple of 100x on your ARR. Today those multiples are 10x or 20x. That means if your company were $2 billion [at the time of your fundraise]your company is [now] worth $200 million.:

Even with a sharp price increase, Pear’s success so far is undeniable. It’s also unlikely.

Very famous, Nozad used to be a carpet dealer who insisted on bringing carpets to his customers’ homes where they would learn about the carpet during long conversations and he would learn about their business. He eventually became a scout for his boss and a trusted friend to some very powerful people.

“He’s a good sniff and I trust him,” Sequoia’s Doug Leone told Forbes in 2012. “He’s like me, from the earth.” In fact, Sequoia has backed a number of companies that Pear has funded, including Guardant Health and DoorDash.

Meanwhile, his partner, Mar Hershenson, was also a major outlier when the two took it out on their own. Despite the fact that she previously founded several companies – one of which Nozad supported – and although she has an MS and Ph.D. She has a degree in electrical engineering from Stanford University, was born in Spain and ten years ago even more unusual in VC circles: she’s a woman who hadn’t previously cut her teeth at someone else’s company.

That may not seem so remarkable today, but in 2012, it brought Hershenson into rare company.

As for the team’s latest bets, Pear hosted an invite-only demo day earlier this week, which we’ll have to update readers on shortly. (Unlike Y Combinator, the outfit holds a demo day for a relatively limited number of companies each year — usually around 10.)

In the meantime, some of his other recent checks have gone to Sudozi, a two-year-old Austin, Tex-based startup. tour led by Peer.

Pear also recently wrote a follow-up review for Osmind, a two-year-old Bay Area-based startup that makes software to map and update patient information and records, with a focus on mental health. The outfit raised $40 million in Series B funding led by DFJ Growth, an announcement it also made earlier this month.

Correction: This story originally reported that Pear’s latest fund has closed, a fait accompli, which is incorrect; we’ve updated the story to reflect that the fund is still being raised.

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