New Enterprise Associates facts for kids
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| Private | |
| Industry | Venture capital |
| Founded | 1977 |
| Founders | Dick Kramlich Chuck Newhall Frank Bonsal |
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Key people
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| AUM | $25 billion (2023) |
New Enterprise Associates (NEA) is a company in America that helps other businesses grow. NEA is a venture capital firm. This means they invest money in new and growing companies. They focus on businesses in technology and healthcare. NEA is one of the biggest venture capital firms in the world, with over $25 billion to invest.
Contents
The Story of NEA: How It Started and Grew
NEA was started in 1977 by three people: C. Richard (Dick) Kramlich, Charles (Chuck) Newhall III, and Frank Bonsal, Jr. These founders had experience in finance and investing. Dick Kramlich had worked with a famous investor named Arthur Rock. Frank Bonsal helped new companies sell their shares to the public for the first time. This is called an initial public offering (IPO). Chuck Newhall managed money for an investment fund.
When NEA first started, it had offices on both the East and West Coasts of the United States. One of their very first investments was in a company called 3Com in 1981.
NEA's Growing Investment Funds
NEA's first investment fund had $16 million. An investment fund is like a big pot of money. Investors put their money into this pot. Then, NEA uses that money to invest in promising companies.
The company grew steadily over the years. Their second fund raised $45 million. The third fund collected $125 million from investors in 1984. By 1996, NEA had raised $900 million across four more funds.
After 1998, NEA started raising much larger funds. Their tenth fund, in 2000, had $2.3 billion. In 2004, they raised $1.1 billion for their eleventh fund. After that, they raised $2.3 billion and $2.5 billion for their next two funds.
In 2010, NEA launched its thirteenth fund with $2.5 billion. This was a very large fund, especially after the 2008 financial crisis. In 2012, their fourteenth fund closed with $2.6 billion.
By April 2015, NEA closed its fifteenth fund with $3.1 billion. This was the largest venture capital fund ever raised at that time. In June 2017, they raised their sixteenth fund with $3.3 billion. This again set a record for the largest venture capital fund.
In 2022, co-founder Chuck Newhall wrote a book. It was called Dare Disturb The Universe: A Memoir of Venture Capital. The Smithsonian Scholars chose it as a top pick for the year.
How NEA Works: Locations and Investments
NEA's main office is in Menlo Park, California. They also have offices in Timonium, London, and New York City. They work with partner offices in places like Mumbai, Bangalore, Beijing, and Shanghai.
Since it began, NEA has invested in almost 1,000 companies. Most of these companies are in the technology and healthcare industries. NEA has helped over 650 of these companies become successful. This often means the companies either had an IPO or were bought by a larger company. Over 250 companies they invested in had an IPO. More than 300 were acquired by other companies.
In 2018, Jeff Immelt, who used to be the CEO of General Electric, joined NEA. He became a venture partner, helping to guide investments.
Companies NEA Has Invested In
NEA invests in many different companies. Some of their investments include:
- Acadia Pharmaceuticals
- Adaptimmune
- Alimera Sciences
- Amicus Therapeutics
- Clovis Oncology
- Databricks
- Prosensa
- Tesaro
NEA has also invested in hundreds of other companies. Some of these include:
- Aerohive Networks
- Appian
- Automation Anywhere
- Bloom Energy
- Box, Inc.
- ByteDance
- Cloudflare
- Coursera
- FiscalNote
- Formlabs
- FTX
- Goop
- Houzz
- MasterClass
- MongoDB
- Patreon
- Plaid
- Robinhood Markets
- ThirdLove
- Upwork
- Wheels Up
- Zoomdata
See also
- Flagship Pioneering, life sciences venture capital firm
