IVP (Institutional Venture Partners)

IVP is one of the names that has been on Sand Hill Road the longest. Its roots go back to 1974. It lists its Silicon Valley office at 3000 Sand Hill Road, the low wooden office campus where many of the early firms gathered. Today it does something different from most of its neighbors. It waits until a startup is already growing fast and then invests large sums, usually at the Series B.

This profile is a neutral explainer for visitors and founders. It draws on IVP's website and published reporting, with sources noted where figures appear. For the basics, start with our venture capital guide.

Reid Dennis and the founding

Reid Dennis, the firm's founder, began investing in young technology companies in the 1950s while working as an analyst at the Fireman's Fund insurance company. One of his first personal investments was in Ampex, the audio tape maker. He also gathered an informal group of private investors who put money into startups together, an early version of what is now called an angel group.

In 1974 Dennis secured a $5 million commitment from American Express and formed Institutional Venture Associates. Its first fund drew $19 million from insurance companies, according to published histories. In 1980 the partnership changed. Dennis renamed the firm Institutional Venture Partners and raised a new fund. Among the investments from that first IVP fund were Seagate and LSI Logic.

In 1983 Mary Jane Elmore became a general partner. She is often described as one of the first women to become a venture partner in the United States. Dennis stepped down as a general partner ahead of the firm's 2010 fund. He died in March 2024.

Our history of venture capital on the Peninsula places IVP among the other firms that arrived on Sand Hill Road in the 1970s and 1980s.

The 1999 split

A turning point came in 1999. Three IVP partners joined three partners from Brentwood Venture Capital to form two new firms. Redpoint Ventures took on early-stage internet and digital media investing. Versant Ventures took on health care. IVP kept managing its own portfolio and shifted toward later-stage investing in companies that were already growing quickly. That is the strategy it still describes today.

The office at 3000 Sand Hill Road

IVP's website lists its Silicon Valley office at 3000 Sand Hill Road, Building 2, Suite 250, Menlo Park. It also lists 747 Front Street in San Francisco and an office in London that opened in 2023, its first outside the United States.

The 3000 Sand Hill Road campus was built in phases from 1971 to 1986. Its wood-sided buildings among oak trees became shorthand for the venture business itself. DivcoWest bought the property in 2020. Our page on 3000 Sand Hill Road tells its story and lists other firms that have been tenants over the years. Like all the offices here, IVP's suite is private.

Stage and approach

IVP's FAQ is unusually specific about what it looks for:

• Stage. Its involvement usually begins at the Series B, once a company can show product-market fit, organic growth and what the firm calls customer love. It says it is not limited to that round.
• Check size. First investments tend to range from $15 million to $75 million, not counting follow-ons.
• Pace. It partners with about a dozen breakout companies a year. Its approach page puts the number at about 10.
• Sectors. Most investments are in application software, enterprise infrastructure, AI, fintech, digital health, gaming and consumer internet.
• Geography. Most companies are in North America or Europe, including Israel. It began backing European companies in 2005.

In practice that means IVP rarely meets a company at the idea stage. Founders usually raise a seed round and a Series A from other investors first. The firm says it wants to help companies grow "from millions to hundreds of millions in revenue."

Notable investments

IVP says it has invested in about 400 companies, with more than 130 IPOs among them. It names these on its own site:

Published histories of the firm add earlier names such as Seagate, Netflix and Twitter, along with Dropbox, Snap and Datadog from the 2010s. A track record like this reflects the later-stage model. IVP usually invests after much of the early risk has been taken by others, so its winners tend to be companies that were already well known when it joined.

What growth-stage investing means

Venture firms are often sorted by the stage at which they first invest. Seed funds and early-stage firms back a team and an idea, often before there is much revenue. Growth investors such as IVP come in once a business is working and the question becomes how fast it can scale. The checks are larger and the risk of total failure is lower. The upside per dollar is usually smaller too.

For a founder, the difference shows up in the questions. Early investors ask about the market and the team. A growth investor asks about revenue growth, customer retention, sales efficiency and how new money will turn into more of all three. Our seed and pre-seed funds page covers the earlier end of that spectrum.

Funds

IVP raises one main fund every few years. Fortune reported in March 2024 that the firm closed its 18th fund at $1.6 billion. Earlier funds were reported at $1.5 billion in 2017 and $1.8 billion in 2021. Each fund is raised from limited partners such as university endowments and pension funds.

How founders reach IVP

IVP's FAQ gives direct advice. It suggests founders email the investor or investors who have experience with businesses like theirs. It also says founders do not need to wait until they are raising to get in touch. Its idea of a strong pitch includes a clear "why now," evidence of product-market fit, a strong team and a fast-growing market.

1. Read the team page to find the investor who covers your sector.
2. Send a short email with your growth numbers and what you plan to do with new capital.
3. Expect a longer relationship before a term sheet. Growth investors often follow a company for months.

For later-stage rounds it helps to understand liquidation preferences, pro rata rights and board composition. Our term sheet basics and pitching guide cover them.

Visiting the area

The 3000 block sits close to the Interstate 280 interchange. Founders driving from San Francisco can exit the freeway and be in the parking lot in a minute or two. From downtown Palo Alto, allow 10 to 15 minutes by car outside rush hour.

Our Sand Hill Road guide has more on parking, timing and the other firms along the corridor.

Frequently asked questions