Altos Ventures, a venture capital entity from Silicon Valley known for supporting companies such as Roblox, Coupang, PandaDoc, and Quizlet, has raised $500 million for its newest fund, as per SEC documents. Having existed for nearly 30 years, this marks their largest fund so far.

Altos Ventures refrained from providing comments on the filing or the upcoming fund.

The multistage venture capital organization handles over 15 funds distributed among three types, according to PitchBook. This includes Altos Ventures and Altos Hybrid funds, investing in both U.S. and global firms, plus the Altos Korea Opportunity Fund focusing on South Korean startups. Altos Ventures holds over $7 billion in managed assets.

Specializing in the enterprise and consumer software arenas, Altos Ventures has a strong emphasis on SaaS, consumer goods, and mobile. The firm takes pride in being the “initial institutional investor in rapidly growing, founder-led companies.”

The emergence of this new fund is significant as it indicates that well-established firms are still successfully gathering substantial funding, even when other areas of the venture market are cooling. Fundraising has become more arduous for newer fund managers, many later-stage startups are finding it tough to secure growth funding, valuations are generally weaker (notably if the company is not in the AI sector), and the IPO market has been stagnant for a long time.

Unlike the few venture capital firms that have expanded to massive multibillion-dollar funds over the past ten years, Altos has opted for a more modest method, regularly limiting its funds to below $1 billion every few years. This is akin to Benchmark, which has stayed conservative, raising a $425 million fund earlier in the year along with an extra $170 million partners-only fund.

For such firms, concentrating on making primary investments in a limited number of early-stage startups—and later-stage investments in Altos’ instance—has shown more success than pursuing enormous multibillion-dollar funds chasing FOMO deals during both the ZIRP (zero interest rate policy) and current AI investment surges.

Data from Cambridge Associates, which establishes and manages investment portfolios for institutional investors, supports this trend: Historically, smaller funds have delivered higher returns. Reflective of this, CRV, an established venture firm more than half a century old, recently returned over half of its $500 million late-stage fund, attributing it to the inflated appraisals of mature startups.

Altos Ventures’ supporters seem satisfied with their strategy for investing. The firm, now 28 years old, asserts to have been the initial and leading investor in over 50 enterprises, with more than a dozen portfolio firms going public or being acquired by publicly listed entities. Thus far, Altos has backed nearly 250 firms, based on PitchBook data.