Silicon Valley venture firm August Capital, which made bets on companies like BarkBox, GitLab Splunk and Bill.com, has returned the commitments raised for its eighth fund to limited partners, according to Axios. The firm, which was founded in 1995, struggled to secure the $250 million it had sought for Fund VIII after investors expressed displeasure over lackluster returns on a previous fund, Axios said. With only half the capital raised for Fund VIII, August Capital decided to throw in the towel altogether.
There isn’t a clear reason for Fund VIII’s abrupt end. While August Capital general partner David Hornik tells Axios that the firm intends to reinvigorate its efforts on the existing portfolio rather than seek out new commitments, one August Capital employee characterized to Axios the decision as unexpected and “rash.”
Additionally, the dissolution of Fund VIII has resulted in an internal shakeup: Axios reports that at least four of the firm’s members, including general partners Tripp Jones and Villi Iltchev, are expected to seek out new employment. August didn’t respond to a request for comment.