Top Tier Capital Partners Raises $925 Million in New Funding

Tier One Capital Partnersknown for investing in some of Silicon Valley’s top venture capital firms, raised $925 million in fresh capital.

The San Francisco-based company said in a statement that the new commitments relate to its Tier 4 Venture Velocity Fund and a number of separate accounts, including one for co-investment in late-stage climate technology companies.

Garth Timollchief executive of Top Tier, said in an interview that the company chose to raise new funds because a challenging market environment was creating “better discounts, which we believe will lead to better long-term returns.” .

Among other investments, he wants to support enterprise software, security, cloud and data analytics companies that generate $5 million to $15 million in revenue, Timoll said.

Top Tier seeks to invest directly in startups before they go public and has in the past backed fantasy sports companies DraftKings Inc. and mobile therapy provider talkspace inc. The new funds will also be used to invest in venture capital companies, notably through the secondary market and direct co-investments.

The latest fundraising brings Top Tier’s assets under management to more than $8.1 billion, according to the release. The company also opened a new office in Boston, Massachusetts.