Highland Capital closes $400M Fund

The Boston-based VC firm may shift from high-cost pharma to IT and Internet plays.

Highland Capital has closed its eighth fund, worth $400 million. The firm plans to use Highland Capital Partners VIII Limited Partnership to fuel investments in early through growth stage companies in healthcare, internet & digital media and technology companies.

This fund is half the size of its $800 million Fund VII, raised in 2006, a reflection of leaner times, but also of continued confidence on the part of LP’s. The company has done well in recent years, helping 90 of its 200+ companies to get acquired or go public. Some of the firm’s recent successes include Conor Medsystems (IPO/acquired by Johnson & Johnson), lululemon athletica (Nasdaq: LULU), Starent Networks (Nasdaq: STAR) and VistaPrint (Nasdaq: VPRT).

Based in Boston, Highland has had a strong showing of pharmaceutical startups, but general partner Bob Higgins tells PE Hub that the firm will now be “more cautious on deals with high capital commitments,” which will likely mean shifting to lower-cost digital media and IT sectors.