Insight Partners has raised $12.5 billion, marking its 13th fund and the largest haul by a venture capital firm in over two years

• Insight Partners has raised $12.5 billion for new software investments as the tech market heats up.
• The new funds mark the largest raise by a VC firm in over two years, per PitchBook data.
• Insight investors say they expect a higher caliber of startups to show up for funding this year.

As more startups go to fundraise to top off their bank accounts, Insight Partners is leaning into the opportunity with billions in new cash for its software investments.

Insight has closed on $12.5 billion for its newest set of funds, Business Insider has learned. The sum is little more than half the size of its previous fundraise of $20 billion in 2022 — a big step down that Insight managing director Ryan Hinkle says is indicative of a "great reset" in tech investing over the last several years.

The firm will allocate the new funds across several different categories: its 13th flagship fund, buyout investments, and an opportunities fund, which provides later-stage companies with financing that combines debt and equity features. Insight declined to share the exact financial breakdown of funds.

Insight had initially set out to raise $20 billion for this set of funds, The Financial Times reported last year. The firm lowered its target as investors in venture capital funds broadly backed off the asset class, spooked by plunging tech stock prices, geopolitical chaos, and recession fears. Household names like Tiger Global and TCV have also switched up strategies and closed funds below their targets in recent years.

Insight's $12.5 billion haul is still an impressive get in a market that's limping back to normalcy. According to PitchBook data, the new funds mark the largest sum raised by a venture capital firm in over two years. In 2024, General Catalyst raked in $8 billion in fresh capital, while Andreessen Howoritz's newest fundraise topped $7.2 billion.

Insight invests in companies from the seed round to the IPO and focuses on categories powered by software, such as healthcare, cybersecurity, data, and the future of work. The firm employs about 485 people, including a hundred investment professionals — a massive dragnet for sourcing and closing deals. Early investments include Twitter, Alibaba, Shopify, and, more recently, buzzy AI startups like Jasper, Wiz, and Writer.

Insight returned over $8 billion to the firm's own investors last year out of profits from exits in the portfolio, according to the firm. Among them, Salesforce bought Own, a data management provider, for $1.9 billion, and Mastercard purchased the threat intelligence company Recorded Future from Insight for over $2 billion.

Insight has gassed up the tank as investors widely expect funding for startups to rebound. In late 2022, many founders saw the writing on the wall and cut spending to stretch their cash reserves further. Fewer founders went out to fundraise in an investor-friendly market. Two and a half years later, some of those same founders are now electing to raise money again in order to lean into risk and spend to grow. Hinkle said Insight is eagerly awaiting those firms.

"The better the income statement and performance of these companies, the less likely they have been raising capital the past two and a half years," said Hinkle, noting he was generalizing.

"This is my expectation, at least, that the batch of companies that hasn't raised since 2021, they're either thinking about an exit, which is good because we can buy those companies, or they're thinking about raising capital again, which is good because we can provide the capital," Hinkle said. Either way, he said, Insight has a product for them.

Praveen Akkiraju, a managing director at Insight, had another reason to feel optimistic. Software spending cooled off in the downturn, but more businesses are planning to increase their tech budgets to capture the efficiencies that artificial intelligence can provide. Recent leaps in the field, such as the application of "agents" and the shrinking cost of computing, have also amplified their interest. This is good news for software companies that sell into the enterprise market.

"Every company cares about AI. It doesn't matter if you're legacy software, hardware, transportation, construction, or you're an electrician," Akkiraju said. "That's what's unique about this. It's enabling tech that's going to fundamentally lift the entire ecosystem."

Hinkle also offered a caveat to his funding outlook. He doesn't expect startups to come to market for funding in the same numbers as they did in 2021. Dealmaking will remain subdued, he said. Hinkle put it this way: After weeks of freezing temperatures in New York, 42 degrees and sun can feel downright tropical. But it's still frigid. And the tech winter hasn't thawed yet.