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Dave McClure led California-based, 500 Startups, an early-stage seed fund and accelerator program has raised $85 Mn for its third global fund.

The firm had targeted to close $100 Mn for this fund.

The partners in the fund include Tokyo-based Dentsu, Yahoo Japan and Malaysia Venture Capital Management Berhad, a venture firm backed by the Malaysian government.

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Founded in 2010 by Dave McClure and Christine Tsai, 500 Startups is an early stage seed fund and incubator program that aims on consumer and small & medium sized internet startups.

Speaking on the funding, McClure, co-founder of 500 startups, said “It wasn’t an easy road, U.S. institutions took exception with the firm’s “index fund” approach to venture capital and the small stakes it takes in companies, among other reasons.”

According to the company, all of the three 500 Startups’ main funds had a net investment rate of return of about 20% at the end of the second quarter. The firm is already eyeing to raise its fourth global fund and a growth fund of about $200 Mn each.

From a debut fund of $29.4 Mn, the firm had target of $50 Mn fund to raise in its 2nd round. However, in 2013 it only managed to close with $44.1 Mn; short of its $50 Mn target.

The firm which takes stake of no more than 1% or 2% is aiming to invest in about 350 to 400 startups this year. It has already invested in about 1,200 startups in the past. A few Indian startups in which it has invested include Pricebaba, Seat 14A, Tushky, SocialCops among others.

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