After Andreesen Horowitz, Bessemer gives up VC status to diversify investment portfolio

US-based Bessemer Venture Partners on Friday renounced its venture capital (VC) fund status and is now an investment advisor with the US Securities and Exchange Commission (SEC).

According to The Information, Bessemer’s decision to give up the standard VC status comes after General Catalyst and Andreessen Horowitz gave up their VC status in 2019, followed by Sequoia Capital this year.

Historically reserved for asset managers and hedge funds, the new status will give Bessemer—one of the oldest venture capital firms—an edge by letting it hold investments in public equities, secondary shares, and crypto assets, besides direct stakes in private companies.

This move comes at a time when an increasingly competitive startup investment landscape sees firms like Coatue Management and Tiger Global Management, who invest in a range of assets, go after VC deals.

Having backed cloud software startups Twilio and Shopify, earlier this week, Bessemer also filed paperwork with the SEC to raise its 12th venture fund, after it had raised a $2.5 billion fund a year ago.

The status change will Bessemer the freedom to expand beyond early and late-stage venture deals.

The San Francisco-based firm has been bullish on early-stage investment in Indian startups, announcing its first India-dedicated fund last year worth $220 million.

It also appointed Nithin Kaimal as its Chief Operating Officer (COO) of its Bengaluru office set up in 2006. Before this role, Nithin served as the co-founder of the investment management firm VixCap.

Some of Bessemer Venture Partners India’s recent investments include Pepper Content and Plobal Apps.