Expanded Tax Credit Program Creates New Fund for Growing Firms
Governor M. Jodi Rell has announced that a key provision of the bipartisan Jobs Bill is triggering a $72 million investment in at least 25 Connecticut small businesses, helping to create jobs, spur innovation and strengthen the state’s economy.
Advantage Capital Partners is the first venture capital and small business finance firm to be certified as a fund manager under the newly revised Insurance Reinvestment Tax Credit program, which was updated as part of the Jobs Bill. The program leverages private capital provided by insurance companies that is then invested by state-certified fund managers.
The Jobs Bill – passed by the Legislature in the waning days of the regular session – is a sweeping, bipartisan package that offers incentives for employers, supports small business and emerging industries, provides resources for tuition and training, helps manufacturers find efficiencies and includes accountability measures to safeguard state taxpayer dollars. The bill was the product of cooperative efforts Governor Rell began in the first leadership meeting of the legislative session.
“As I have traveled the state, one of the top concerns I have heard – especially as the economy has struggled – has been the lack of access to capital, especially risk capital for new ventures with considerable start-up costs but high growth potential,” Governor Rell said. “With the changes that we made to the Insurance Reinvestment Tax Credit program, there will be a much-needed infusion of investment dollars into our state to support business formation and growth, as well as strengthen our high-tech work force. I expect that this program will be paying important economic dividends for years to come.”
Advantage Capital Partners, a group of venture capital partnerships that has raised more than $1.3 billion since 1992, has raised $72 million for investment in Connecticut-based companies. The firm provides equity and debt capital, along with value-added counsel and other support, to operating businesses that have the potential for excellent investor returns as well as significant community impact.
For the Connecticut fund, Advantage Capital has partnered with Ironwood Capital, an Avon-based investment management firm focused on private equity, mezzanine and senior debt investments. Ironwood Capital will identify, underwrite and manage these investments.
Advantage Capital’s fund will identify promising debt and equity investment opportunities in everything from seed-stage through mature but growing companies.
“Advantage Capital Partners is committed to fostering the growth of small businesses in Connecticut,” said Steven T. Stull, President of Advantage Capital Partners. “Our firm has a strong track record of raising private capital for investments which promote economic opportunity, enable job creation and retention, and contribute to a robust investment climate. We look forward to working with the State of Connecticut and with Ironwood Capital to accomplish these important goals.”
The revamped Insurance Reinvestment Tax Credit program now allows fund managers to invest in any Connecticut-based business, not just insurance-related companies. Twenty-five percent of the investments must be committed to green technology efforts, while 3 percent must go toward pre-seed investments.
“The passage of the jobs bill earlier this year was a momentous occasion for Connecticut,” said Joan McDonald, DECD commissioner and Connecticut Innovations board chair. “It provided a host of new incentives and resources for businesses to boost investment and create jobs across all industry sectors. The changes made to the Insurance Reinvestment Tax Credit program, most notably in the pre-seed area, are another important building block in our efforts to move to an innovation-based economy.”
To learn more about the Advantage Capital Connecticut fund, please contact Victor Budnick at (860) 409-2108 or John Strahley at (860) 409-2106. Companies seeking capital can submit requests for funding via email to icc@ironwoodcap.com.
Thursday, December 30, 2010
Tuesday, December 28, 2010
Cleantech venture capital
11 predictions for 2011
by Rob Day, a Partner with Black Coral Capital, based in Boston.
1. The cleantech venture capital shakeout will become more obvious
I haven't seen too much written about this by those outside the industry, mostly because it's been pretty quietly done. But as we've talked about here before, there's been an exodus of investors out of the sector lately. To date, it's been mostly individuals -- either individual VCs leaving their firms, or the "cleantech guy" at diversified firms now being redirected back out of cleantech investing into other sectors. But wearing my limited partner hat, I'm seeing a whole lot of cleantech-specific firms out there or getting ready to go out there and raise new funds. And I just don't think the LP community will be able to support all of them. The big institutional LPs have been shifting away from venture capital as an asset class, and they've become more tepid about cleantech. 2010 saw a stop of any new cleantech venture firms; 2011 will see the shakeout of existing cleantech venture firms. Certainly there are a good number of cleantech-specific funds that previously had been able to raise funds simply on the basis of being cleantech specialists, but who now will be competing against each other for increasingly scarce LP dollars. And (often because of the overall VC category performance, and the lack of VC exits overall over the past decade) many won't have an advantaged track record, and won't have a really differentiated pitch versus their peers. I think it'll be lean times for many of those funds. The firms won't go away, but there may be more obvious slimming of staff as operating budgets go down and the lack of dry powder makes it less necessary to keep staff on. The good news is, given the continued need for experienced senior management at cleantech venture-backed firms, I think a lot of this will be VCs leaving to take operating roles. The other good news is that I think things will continue to get gradually better for cleantech venture fundraising.
See the other 10 predictions here.
by Rob Day, a Partner with Black Coral Capital, based in Boston.
1. The cleantech venture capital shakeout will become more obvious
I haven't seen too much written about this by those outside the industry, mostly because it's been pretty quietly done. But as we've talked about here before, there's been an exodus of investors out of the sector lately. To date, it's been mostly individuals -- either individual VCs leaving their firms, or the "cleantech guy" at diversified firms now being redirected back out of cleantech investing into other sectors. But wearing my limited partner hat, I'm seeing a whole lot of cleantech-specific firms out there or getting ready to go out there and raise new funds. And I just don't think the LP community will be able to support all of them. The big institutional LPs have been shifting away from venture capital as an asset class, and they've become more tepid about cleantech. 2010 saw a stop of any new cleantech venture firms; 2011 will see the shakeout of existing cleantech venture firms. Certainly there are a good number of cleantech-specific funds that previously had been able to raise funds simply on the basis of being cleantech specialists, but who now will be competing against each other for increasingly scarce LP dollars. And (often because of the overall VC category performance, and the lack of VC exits overall over the past decade) many won't have an advantaged track record, and won't have a really differentiated pitch versus their peers. I think it'll be lean times for many of those funds. The firms won't go away, but there may be more obvious slimming of staff as operating budgets go down and the lack of dry powder makes it less necessary to keep staff on. The good news is, given the continued need for experienced senior management at cleantech venture-backed firms, I think a lot of this will be VCs leaving to take operating roles. The other good news is that I think things will continue to get gradually better for cleantech venture fundraising.
See the other 10 predictions here.
Wednesday, December 22, 2010
Women In Venture Capital
High Performance Entrepreneurs: Women in High Tech
New research shows what many have long suspected: women entrepreneurs are poised to lead the next wave of growth in global technology ventures. The full report, prepared by Illuminate Ventures, documents the performance of women entrepreneurs in the past decade and the trends that are propelling them towards critical mass in the high-tech sector. Register to receive the full 15-page paper.
Big Progress in Recent Times: More women are serving as officers of venture-backed companies with successful exits. In 1988, only 4% of the 134 firms that went public in the U.S. had women in top management positions. Of 2009’s 19 high-tech IPOs, all but two had at least one woman officer.
Venture-level Returns: In the past 10 years more than 125 companies with over 200 women co-founders or officers have achieved IPOs or >$50M M&A exits in the U.S. high-tech sector alone.
Impact of Women Investors: Women now represent just over 15 percent of angel investors, but just 5%-7% of partner-level high-tech venture capital investors in the U.S. Firms with women investment partners are 70 percent more likely to lead an investment in a woman entrepreneur than those with only male partners.
The bottom line: More than ever before, women are influencing the face of business. They are on the cusp of becoming a leading entrepreneurial force in technology. As the global economy regenerates, new business models are needed to stimulate economic and job growth. Investors seeking to reinvigorate bottom-line performance and to favorably impact the entrepreneurial strength of our economy would be wise to support strategies that enable high-tech start-ups that are inclusive of women entrepreneurs.
Please Register Here to Receive The Complete Whitepaper
New research shows what many have long suspected: women entrepreneurs are poised to lead the next wave of growth in global technology ventures. The full report, prepared by Illuminate Ventures, documents the performance of women entrepreneurs in the past decade and the trends that are propelling them towards critical mass in the high-tech sector. Register to receive the full 15-page paper.
Big Progress in Recent Times: More women are serving as officers of venture-backed companies with successful exits. In 1988, only 4% of the 134 firms that went public in the U.S. had women in top management positions. Of 2009’s 19 high-tech IPOs, all but two had at least one woman officer.
Venture-level Returns: In the past 10 years more than 125 companies with over 200 women co-founders or officers have achieved IPOs or >$50M M&A exits in the U.S. high-tech sector alone.
Impact of Women Investors: Women now represent just over 15 percent of angel investors, but just 5%-7% of partner-level high-tech venture capital investors in the U.S. Firms with women investment partners are 70 percent more likely to lead an investment in a woman entrepreneur than those with only male partners.
The bottom line: More than ever before, women are influencing the face of business. They are on the cusp of becoming a leading entrepreneurial force in technology. As the global economy regenerates, new business models are needed to stimulate economic and job growth. Investors seeking to reinvigorate bottom-line performance and to favorably impact the entrepreneurial strength of our economy would be wise to support strategies that enable high-tech start-ups that are inclusive of women entrepreneurs.
Please Register Here to Receive The Complete Whitepaper
Monday, December 13, 2010
3rd Quarter Venture Capital Activity
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Full report:
ß DowJones VentureSource (“VentureSource”) reported that the amount invested by venture capitalists in the U.S. in the third quarter of 2010 was approximately $5.5 billion in 662 deals, a decrease from the $7.7 billion invested in 740 deals in 2Q10. The PwC/NVCA MoneyTree™ report based on data from Thomson Reuters (the “MoneyTree™ Report”) also reported a decrease in 3Q10 venture capital investment, with $4.8 billion invested in 780 deals, compared to $6.9 billion being invested in 962 deals in 2Q10. Despite the decrease in 3Q10, investments by venture capital funds in 2010 is on pace to modestly surpass the amount invested in 2009, although 2009 was the weakest year for venture investment since 2003.
ß VentureSource reported 102 acquisitions of venture-backed companies in the U.S. in 3Q10, for a total of $5.7 billion, an increase from the $4.8 billion paid in 85 acquisitions reported for 2Q10.Thomson Reuters and the National Venture Capital Association reported 104 acquisitions of venture-backed companies in the third quarter of 2010, compared to 97 currently being reported for 2Q10. Acquisitions of venture-backed companies in the first three quarters of 2010 have almost already surpassed total acquisitions in all of 2009. The largest acquisition in 3Q10 was Walt Disney’s acquisition of Playdom for $563 million.
ß There were 14 venture-backed IPOs in the third quarter of 2010 raising a total of $1.2 billion, compared to 17 in 2Q10 raising a total of $1.3 billion, according to Thomson Reuters and the National Venture Capital Association. Although IPOs declined in the third quarter, there have already been significantly more IPOs in the first three quarters of 2010 (40) than in all of 2009 VentureSource reported nine venture-backed IPOs in 3Q10 raising a total of $723 million, compared to 15 IPOs raising $900 million in 2Q10. The largest IPO in 3Q10 was by Green Dot Corp. raising $164 million.
ß Fundraising by U.S. venture capital funds increased in the third quarter, with 45 firms raising $3 billion in the quarter, compared to 51 firms raising $2.1 billion in the second quarter of 2010, according to Thomson Reuters and the National Venture Capital Association. The largest fundraising in 3Q10 was $750 million by IVP. Both Thomson Reuters/NVCA and VentureSource report VC fundraising in 2010 to be behind the pace of 2009, which was the lowest year for fundraising in six years.
ß Since the first quarter of 2009, venture capitalists have invested significantly more in companies ($41.4 billion per VentureSource, $34.9 billion per the MoneyTree) than new capital that has been committed to venture funds ($22.7 billion per VentureSource, $25.4 billion per Thomson Reuters/NVCA), which is not sustainable over a prolonged period.
ß The Silicon Valley Venture Capital Confidence Index produced by Professor Mark Cannice at the University of San Francisco reported the confidence level of Silicon Valley venture capitalists at 3.7 on a 5 point scale, which was a significant increase from the previous quarter’s reading of 3.28.
Full report:
ß DowJones VentureSource (“VentureSource”) reported that the amount invested by venture capitalists in the U.S. in the third quarter of 2010 was approximately $5.5 billion in 662 deals, a decrease from the $7.7 billion invested in 740 deals in 2Q10. The PwC/NVCA MoneyTree™ report based on data from Thomson Reuters (the “MoneyTree™ Report”) also reported a decrease in 3Q10 venture capital investment, with $4.8 billion invested in 780 deals, compared to $6.9 billion being invested in 962 deals in 2Q10. Despite the decrease in 3Q10, investments by venture capital funds in 2010 is on pace to modestly surpass the amount invested in 2009, although 2009 was the weakest year for venture investment since 2003.
ß VentureSource reported 102 acquisitions of venture-backed companies in the U.S. in 3Q10, for a total of $5.7 billion, an increase from the $4.8 billion paid in 85 acquisitions reported for 2Q10.Thomson Reuters and the National Venture Capital Association reported 104 acquisitions of venture-backed companies in the third quarter of 2010, compared to 97 currently being reported for 2Q10. Acquisitions of venture-backed companies in the first three quarters of 2010 have almost already surpassed total acquisitions in all of 2009. The largest acquisition in 3Q10 was Walt Disney’s acquisition of Playdom for $563 million.
ß There were 14 venture-backed IPOs in the third quarter of 2010 raising a total of $1.2 billion, compared to 17 in 2Q10 raising a total of $1.3 billion, according to Thomson Reuters and the National Venture Capital Association. Although IPOs declined in the third quarter, there have already been significantly more IPOs in the first three quarters of 2010 (40) than in all of 2009 VentureSource reported nine venture-backed IPOs in 3Q10 raising a total of $723 million, compared to 15 IPOs raising $900 million in 2Q10. The largest IPO in 3Q10 was by Green Dot Corp. raising $164 million.
ß Fundraising by U.S. venture capital funds increased in the third quarter, with 45 firms raising $3 billion in the quarter, compared to 51 firms raising $2.1 billion in the second quarter of 2010, according to Thomson Reuters and the National Venture Capital Association. The largest fundraising in 3Q10 was $750 million by IVP. Both Thomson Reuters/NVCA and VentureSource report VC fundraising in 2010 to be behind the pace of 2009, which was the lowest year for fundraising in six years.
ß Since the first quarter of 2009, venture capitalists have invested significantly more in companies ($41.4 billion per VentureSource, $34.9 billion per the MoneyTree) than new capital that has been committed to venture funds ($22.7 billion per VentureSource, $25.4 billion per Thomson Reuters/NVCA), which is not sustainable over a prolonged period.
ß The Silicon Valley Venture Capital Confidence Index produced by Professor Mark Cannice at the University of San Francisco reported the confidence level of Silicon Valley venture capitalists at 3.7 on a 5 point scale, which was a significant increase from the previous quarter’s reading of 3.28.
SEC proposes regulations under Dodd-Frank affecting venture capital
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During October and November 2010, the U.S. Securities and Exchange Commission proposed several key regulations called for by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which Congress passed and President Obama signed into law in July 2010. Now, through its rulemaking proposals in October and November 2010 (the Proposed Regulations) which are summarized below, the SEC has begun to fill in a number of important details left unspecified by Congress in the original legislation.
The Proposed Regulations affect all private funds which claim exemption from the Investment Company Act of 1940 under Section 3(c)(1) or 3(c)(7) of that statute. This includes practically all hedge, leveraged-buyout, venture-capital, real-estate, mezzanine-debt, and distressed-debt funds, as well as funds-of-funds. As they relate specifically to private funds, the Proposed Regulations do three major things:
* First, they propose definitions and details regarding certain exemptions from registration with the SEC under the Investment Advisers Act of 1940 (the Advisers Act). (Dodd-Frank eliminated, effective in July 2011, the exemption which most private funds had been relying on until now, replacing it with new exemption criteria.)
* Second, the Proposed Regulations would require every firm that serves as an investment adviser to any 3(c)(1) or 3(c)(7) fund to file with the SEC and update annually a Form ADV. This requirement would apply even to smaller advisory firms which will remain exempt from registration because their assets under management are below Dodd-Frank's registration threshold.
* Third, the Proposed Regulations would impose new recordkeeping and reporting requirements on registered investment advisers.
Key definitions and details included in the Proposed Regulations
Advisers whose only clients are private funds and whose assets under management (AUM) are less than $150 million will generally remain exempt from registration under the Advisers Act when Dodd-Frank becomes effective in July 2011. (For advisers who have at least some non-fund clients, the applicable AUM threshold is $100 million.) The Proposed Regulations give guidance on how AUM is to be measured for this purpose.
Advisers whose only clients are venture capital funds will remain exempt from registration, regardless of the amount of their AUM. The Proposed Regulations would define the term "venture capital fund" for this purpose.
Advisers who qualify as "family offices" will also remain exempt from registration under the Advisers Act, regardless of the amount of their AUM. The Proposed Regulations would define the term "family office" for this purpose.
Exemption for advisers to private funds with cumulative AUM less than $150 million
The Advisers Act defines the term "assets under management" by reference to the "securities portfolios" with respect to which an investment adviser provides "continuous and regular supervisory or management services." The Proposed Regulations provide guidance on the calculation of AUM for private funds, as follows:
* An adviser to a private fund must include the fund's unfunded capital commitments in its AUM.
* An adviser to a private fund must include the value of proprietary assets, assets which the adviser manages on an uncompensated basis, and assets of foreign clients in its AUM.
* Advisers must use a fair-value methodology when measuring AUM, and cannot simply rely on cost basis.
Exemption for advisers to venture capital funds
Dodd-Frank exempts advisers solely to venture capital funds from registration under the Advisers Act. The Proposed Regulations define the term "venture capital fund" to include only private funds which satisfy all of the following criteria:
* The private fund invests only in equity securities of qualifying portfolio companies to provide them with business expansion and operating capital. At least 80% of the private fund's interest in the issuing company must be acquired directly from the company and not from the issuer's existing equity holders. An issuer can be a qualifying portfolio company if no more than 20% of the private fund's interest was acquired from founders or other preexisting investors.
* The private fund controls, or provides significant managerial services to, the qualifying portfolio companies.
* The private fund does not incur leverage at the private fund level, other than certain permitted short-term borrowings.
* The private fund is a closed-end fund, i.e., it does not offer routine redemption rights to investors.
* The private fund holds itself out as a venture capital fund to investors.
To be a "venture capital fund" a private fund may invest only in "qualifying portfolio companies." The Proposed Regulations define that term to include only an entity which satisfies all of the following criteria:
* is not publicly traded at the time of the venture capital fund's investment,
* does not incur leverage in connection with the investment by the venture capital fund,
* uses the capital provided by the venture capital fund for business expansion or operating purposes, and
* is not itself a fund.
Exemption for Family Offices
Dodd-Frank exempts family offices from registration under the Advisers Act. The Proposed Regulations define "family office" as an adviser whose clients include only persons who are family members. A "family member" includes a spouse, a spousal equivalent, a subsequent spouse, a parent, a sibling, a child (including children by adoption and stepchildren), and a spouse or spousal equivalent of the foregoing.
In the event of an involuntary transfer from a family member, the Proposed Regulations would afford the adviser a four-month transition period in which to register under the Advisers Act or transfer the management of the assets. In case of a divorce, a former spouse could continue to receive advice for the assets already being managed by the family office, but could not make additional investments with such adviser.
The clients of a family office may include any charitable organization that is funded solely by a family member, and any trust or estate existing for the sole benefit of a family client, or any investment vehicle wholly-controlled by a family client and operated for the sole benefit of family clients. Clients may also include non-family members who are executive officers, directors, trustees or general partners of the adviser, or other persons who have participated in the investment activities of the family office for at least 12 months.
New filing requirements for advisers exempt from registration
Under the Proposed Regulations, all investment advisers which are exempt from registration under the Advisers Act, but whose clients include any 3(c)(1) or 3(c)(7) private fund, would nevertheless be required to comply with certain limited reporting obligations. These exempt advisers would be required to file a limited Form ADV with the SEC and provide certain information about their activities to the SEC. The information required to be reported would include, among other things, the adviser's form of organization, a description of its other business activities, its financial industry affiliations, the identity of its control persons and owners, and any disciplinary history for the adviser and its employees.
The Proposed Regulations would require exempt advisers to file their first limited Form ADV by August 20, 2011, and to update their Form ADV filings annually.
Additional Reporting for Advisers to Private Funds
The Proposed Regulations amend Form ADV for a registered adviser to a private fund (exempt advisers will also be required to provide certain of this information in its limited Form ADV) in order to require reporting of the following information:
* The amount of AUM.
* Information regarding its private funds, including: (1) names and jurisdictions of such funds (though a code can be used to preserve anonymity); (2) general partners and directors; (3) names and jurisdictions of any foreign financial regulatory authorities are subject; (4) status as a master/feeder.
* Whether private fund is a fund of funds.
* The fund's investment strategy. The fund's gross and net asset value, minimum investment and number of beneficial owners.
* Whether clients of the adviser are solicited to in the fund, and the percentage of the adviser's clients invested in the fund.
* The number and types of investors in the fund.
* The name of the adviser's auditor, whether it is independent and registered with the PCAOB and whether audited financials are distributed to investors.
* The name of the adviser's prime broker and whether it is SEC-registered and acts as a fund's custodian.
* The name and role of the fund's administrator.
* The name of each marketer, whether it is a related person of the adviser, its SEC file number and URL for any website used to market the fund.
* Information regarding employees, including the number employees registered as representatives of a broker-dealer.
* Information regarding the adviser's clients, including disclosure as to whether any are business development companies, insurance companies or other investment advisers and whether any are subject to ERISA.
* Disclosure about participation in client transactions: The Proposed Regulations require advisers with discretionary authority to determine whether brokers or dealers used in client transactions would be required to report whether any such brokers or dealers are related persons.
* Information about the adviser's non-advisory activities.
* Advisers with $1 billion in AUM may be subject to future rules regarding certain incentive-based compensation arrangements.
During October and November 2010, the U.S. Securities and Exchange Commission proposed several key regulations called for by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which Congress passed and President Obama signed into law in July 2010. Now, through its rulemaking proposals in October and November 2010 (the Proposed Regulations) which are summarized below, the SEC has begun to fill in a number of important details left unspecified by Congress in the original legislation.
The Proposed Regulations affect all private funds which claim exemption from the Investment Company Act of 1940 under Section 3(c)(1) or 3(c)(7) of that statute. This includes practically all hedge, leveraged-buyout, venture-capital, real-estate, mezzanine-debt, and distressed-debt funds, as well as funds-of-funds. As they relate specifically to private funds, the Proposed Regulations do three major things:
* First, they propose definitions and details regarding certain exemptions from registration with the SEC under the Investment Advisers Act of 1940 (the Advisers Act). (Dodd-Frank eliminated, effective in July 2011, the exemption which most private funds had been relying on until now, replacing it with new exemption criteria.)
* Second, the Proposed Regulations would require every firm that serves as an investment adviser to any 3(c)(1) or 3(c)(7) fund to file with the SEC and update annually a Form ADV. This requirement would apply even to smaller advisory firms which will remain exempt from registration because their assets under management are below Dodd-Frank's registration threshold.
* Third, the Proposed Regulations would impose new recordkeeping and reporting requirements on registered investment advisers.
Key definitions and details included in the Proposed Regulations
Advisers whose only clients are private funds and whose assets under management (AUM) are less than $150 million will generally remain exempt from registration under the Advisers Act when Dodd-Frank becomes effective in July 2011. (For advisers who have at least some non-fund clients, the applicable AUM threshold is $100 million.) The Proposed Regulations give guidance on how AUM is to be measured for this purpose.
Advisers whose only clients are venture capital funds will remain exempt from registration, regardless of the amount of their AUM. The Proposed Regulations would define the term "venture capital fund" for this purpose.
Advisers who qualify as "family offices" will also remain exempt from registration under the Advisers Act, regardless of the amount of their AUM. The Proposed Regulations would define the term "family office" for this purpose.
Exemption for advisers to private funds with cumulative AUM less than $150 million
The Advisers Act defines the term "assets under management" by reference to the "securities portfolios" with respect to which an investment adviser provides "continuous and regular supervisory or management services." The Proposed Regulations provide guidance on the calculation of AUM for private funds, as follows:
* An adviser to a private fund must include the fund's unfunded capital commitments in its AUM.
* An adviser to a private fund must include the value of proprietary assets, assets which the adviser manages on an uncompensated basis, and assets of foreign clients in its AUM.
* Advisers must use a fair-value methodology when measuring AUM, and cannot simply rely on cost basis.
Exemption for advisers to venture capital funds
Dodd-Frank exempts advisers solely to venture capital funds from registration under the Advisers Act. The Proposed Regulations define the term "venture capital fund" to include only private funds which satisfy all of the following criteria:
* The private fund invests only in equity securities of qualifying portfolio companies to provide them with business expansion and operating capital. At least 80% of the private fund's interest in the issuing company must be acquired directly from the company and not from the issuer's existing equity holders. An issuer can be a qualifying portfolio company if no more than 20% of the private fund's interest was acquired from founders or other preexisting investors.
* The private fund controls, or provides significant managerial services to, the qualifying portfolio companies.
* The private fund does not incur leverage at the private fund level, other than certain permitted short-term borrowings.
* The private fund is a closed-end fund, i.e., it does not offer routine redemption rights to investors.
* The private fund holds itself out as a venture capital fund to investors.
To be a "venture capital fund" a private fund may invest only in "qualifying portfolio companies." The Proposed Regulations define that term to include only an entity which satisfies all of the following criteria:
* is not publicly traded at the time of the venture capital fund's investment,
* does not incur leverage in connection with the investment by the venture capital fund,
* uses the capital provided by the venture capital fund for business expansion or operating purposes, and
* is not itself a fund.
Exemption for Family Offices
Dodd-Frank exempts family offices from registration under the Advisers Act. The Proposed Regulations define "family office" as an adviser whose clients include only persons who are family members. A "family member" includes a spouse, a spousal equivalent, a subsequent spouse, a parent, a sibling, a child (including children by adoption and stepchildren), and a spouse or spousal equivalent of the foregoing.
In the event of an involuntary transfer from a family member, the Proposed Regulations would afford the adviser a four-month transition period in which to register under the Advisers Act or transfer the management of the assets. In case of a divorce, a former spouse could continue to receive advice for the assets already being managed by the family office, but could not make additional investments with such adviser.
The clients of a family office may include any charitable organization that is funded solely by a family member, and any trust or estate existing for the sole benefit of a family client, or any investment vehicle wholly-controlled by a family client and operated for the sole benefit of family clients. Clients may also include non-family members who are executive officers, directors, trustees or general partners of the adviser, or other persons who have participated in the investment activities of the family office for at least 12 months.
New filing requirements for advisers exempt from registration
Under the Proposed Regulations, all investment advisers which are exempt from registration under the Advisers Act, but whose clients include any 3(c)(1) or 3(c)(7) private fund, would nevertheless be required to comply with certain limited reporting obligations. These exempt advisers would be required to file a limited Form ADV with the SEC and provide certain information about their activities to the SEC. The information required to be reported would include, among other things, the adviser's form of organization, a description of its other business activities, its financial industry affiliations, the identity of its control persons and owners, and any disciplinary history for the adviser and its employees.
The Proposed Regulations would require exempt advisers to file their first limited Form ADV by August 20, 2011, and to update their Form ADV filings annually.
Additional Reporting for Advisers to Private Funds
The Proposed Regulations amend Form ADV for a registered adviser to a private fund (exempt advisers will also be required to provide certain of this information in its limited Form ADV) in order to require reporting of the following information:
* The amount of AUM.
* Information regarding its private funds, including: (1) names and jurisdictions of such funds (though a code can be used to preserve anonymity); (2) general partners and directors; (3) names and jurisdictions of any foreign financial regulatory authorities are subject; (4) status as a master/feeder.
* Whether private fund is a fund of funds.
* The fund's investment strategy. The fund's gross and net asset value, minimum investment and number of beneficial owners.
* Whether clients of the adviser are solicited to in the fund, and the percentage of the adviser's clients invested in the fund.
* The number and types of investors in the fund.
* The name of the adviser's auditor, whether it is independent and registered with the PCAOB and whether audited financials are distributed to investors.
* The name of the adviser's prime broker and whether it is SEC-registered and acts as a fund's custodian.
* The name and role of the fund's administrator.
* The name of each marketer, whether it is a related person of the adviser, its SEC file number and URL for any website used to market the fund.
* Information regarding employees, including the number employees registered as representatives of a broker-dealer.
* Information regarding the adviser's clients, including disclosure as to whether any are business development companies, insurance companies or other investment advisers and whether any are subject to ERISA.
* Disclosure about participation in client transactions: The Proposed Regulations require advisers with discretionary authority to determine whether brokers or dealers used in client transactions would be required to report whether any such brokers or dealers are related persons.
* Information about the adviser's non-advisory activities.
* Advisers with $1 billion in AUM may be subject to future rules regarding certain incentive-based compensation arrangements.
Statement by NVCA President Mark Heesen and TechNet President Rey Ramsey Regarding Support for Extending Clean Energy Tax Incentives
The National Venture Capital Association (NVCA) and TechNet strongly support the addition of two critical energy tax provisions to the tax bill. The Treasury Grant Program, Section 1603 and the Advanced Energy Manufacturing Credit, Section 48C are both due to expire at the end of the year and, if they are allowed to lapse, investment into clean energy technology companies in the United States will suffer. Failure to extend these critical energy tax programs will further widen the lead that other countries – most notably China – now enjoy in the global clean energy marketplace.
Hundreds of renewable energy companies have applied for and received Section 1603 “grants in lieu of tax credits.” In turn, these companies have used the cash grants to fuel their growth in the creation of thousands of new “green jobs” in the U.S. Without Section 1603, the investment and production tax credits intended to benefit these companies will remain dormant and fail to achieve their legislative purpose.
Similarly, Section 48C of the Internal Revenue Code provides a 30% tax credit for investments in facilities that manufacture components for the production of renewable or clean energy. The program was over-subscribed, and the 48C credit was instrumental in incentivizing the location of manufacturing plants and the creation of high-wage, skilled “green jobs” in the United States.
We believe that tax policy must be used to link American innovation with American production. All too often in the past innovating American companies have located their manufacturing plants in other countries. The provisions contained in Sections 1603 and 48C are vital to our ongoing global competitiveness. The NVCA and TechNet are asking Congress to take this opportunity to ensure our clean energy future with these extensions.
The economic downturn has significantly reduced the amount of private sector lending. For technologies that require significant upfront costs, the 1603 and 48C programs have been critical. Both of these programs proved extremely popular and the demand remains; extending them will help the clean tech industry move forward as the economy continues its slow recovery.
According to NVCA President Mark Heesen, “For the first time, tax policy was used to link American innovation – where the U.S. has always been strong –with American production – where too often in the past innovating companies have located their manufacturing plants in other countries so that they could remain viable companies.”
TechNet President and CEO Rey Ramsey added, “Clean tech represents an enormous economic opportunity for the United States and if we are to be a global leader in this area, we must support the growth of companies and entrepreneurs. The Treasury grant programs are effective in creating good paying jobs nationwide. Therefore, they ought to be extended.”
About TechNet:
TechNet is the national, bipartisan network of CEOs that promotes the growth of technology industries and the economy by building long-term relationships between technology leaders and policymakers and by advocating a targeted policy agenda. TechNet’s members represent more than one million employees in the fields of information technology, clean energy, biotechnology, e-commerce and finance. TechNet has offices in Washington, DC, Palo Alto, Sacramento, Seattle, Boston and Austin,Texas. Web address: www.technet.org.
Hundreds of renewable energy companies have applied for and received Section 1603 “grants in lieu of tax credits.” In turn, these companies have used the cash grants to fuel their growth in the creation of thousands of new “green jobs” in the U.S. Without Section 1603, the investment and production tax credits intended to benefit these companies will remain dormant and fail to achieve their legislative purpose.
Similarly, Section 48C of the Internal Revenue Code provides a 30% tax credit for investments in facilities that manufacture components for the production of renewable or clean energy. The program was over-subscribed, and the 48C credit was instrumental in incentivizing the location of manufacturing plants and the creation of high-wage, skilled “green jobs” in the United States.
We believe that tax policy must be used to link American innovation with American production. All too often in the past innovating American companies have located their manufacturing plants in other countries. The provisions contained in Sections 1603 and 48C are vital to our ongoing global competitiveness. The NVCA and TechNet are asking Congress to take this opportunity to ensure our clean energy future with these extensions.
The economic downturn has significantly reduced the amount of private sector lending. For technologies that require significant upfront costs, the 1603 and 48C programs have been critical. Both of these programs proved extremely popular and the demand remains; extending them will help the clean tech industry move forward as the economy continues its slow recovery.
According to NVCA President Mark Heesen, “For the first time, tax policy was used to link American innovation – where the U.S. has always been strong –with American production – where too often in the past innovating companies have located their manufacturing plants in other countries so that they could remain viable companies.”
TechNet President and CEO Rey Ramsey added, “Clean tech represents an enormous economic opportunity for the United States and if we are to be a global leader in this area, we must support the growth of companies and entrepreneurs. The Treasury grant programs are effective in creating good paying jobs nationwide. Therefore, they ought to be extended.”
About TechNet:
TechNet is the national, bipartisan network of CEOs that promotes the growth of technology industries and the economy by building long-term relationships between technology leaders and policymakers and by advocating a targeted policy agenda. TechNet’s members represent more than one million employees in the fields of information technology, clean energy, biotechnology, e-commerce and finance. TechNet has offices in Washington, DC, Palo Alto, Sacramento, Seattle, Boston and Austin,Texas. Web address: www.technet.org.
Thursday, December 2, 2010
Proposed regulations exempting advisers to “venture capital funds” from the registration requirements
On Friday November 19, 2010, the SEC issued Release No. IA‐ 3111 in which it articulated, among other things, the proposed regulations exempting advisers to “venture capital funds” from the registration requirements of the Investment Advisers Act of 1940. The proposed regulations are mandated by Section 407 of the Dodd‐Frank Wall Street Reform and Consumer Protection Act, and are expected to be codified by new Rule 203(l)‐1 under the Investment Advisers Act of 1940.
Overview
The proposed regulations are narrowly tailored to exempt those serving in an adviser capacity to venture capital funds. They do not apply to advisers to other types of private investment funds, such as private equity funds or hedge funds. Key points that are relevant to venture capital fund advisers are as follows:
1. A “venture capital fund” would qualify as such under the exemption only if it meets the following requirements:
* The fund represents itself as a venture capital fund to investors;
* The fund invests in equity securities of private companies in order to provide operating and business expansion capital (i.e., “qualifying portfolio companies,”) and at least 80 percent of each company’s securities owned by the fund were acquired directly from the qualifying portfolio company cash (and cash equivalents) and U.S. Treasuries with a remaining maturity of 60 days or less;
* The fund directly, or through its investment advisers, offers or provides significant managerial assistance to, or controls, the qualifying portfolio company;
* The fund is not registered under the Investment Company Act and has not elected to be treated as a “business development company”;
* The fund does not borrow or otherwise incur leverage (other than limited short‐term borrowing); and
* The fund does not offer its investors redemption or other similar liquidity rights except in extraordinary circumstances.
2. The exemption applies without regard to the number of venture capital funds advised by the adviser or the size of such funds.
3. The exemption is not mandatory, thus an adviser may voluntarily register.
4. The SEC has proposed a grandfathering provision for those existing funds that make venture capital investments and hold themselves out as venture capital funds. The provision applies to any venture capital fund that (i) represented to investors and potential investors at the time the fund offered its securities that it is a venture capital fund; (ii) has sold securities to one or more investors prior to December 31, 2010; and (iii) does not sell any securities to, including accepting any additional capital commitments from, any person after July 21, 2011.
Complete article
Overview
The proposed regulations are narrowly tailored to exempt those serving in an adviser capacity to venture capital funds. They do not apply to advisers to other types of private investment funds, such as private equity funds or hedge funds. Key points that are relevant to venture capital fund advisers are as follows:
1. A “venture capital fund” would qualify as such under the exemption only if it meets the following requirements:
* The fund represents itself as a venture capital fund to investors;
* The fund invests in equity securities of private companies in order to provide operating and business expansion capital (i.e., “qualifying portfolio companies,”) and at least 80 percent of each company’s securities owned by the fund were acquired directly from the qualifying portfolio company cash (and cash equivalents) and U.S. Treasuries with a remaining maturity of 60 days or less;
* The fund directly, or through its investment advisers, offers or provides significant managerial assistance to, or controls, the qualifying portfolio company;
* The fund is not registered under the Investment Company Act and has not elected to be treated as a “business development company”;
* The fund does not borrow or otherwise incur leverage (other than limited short‐term borrowing); and
* The fund does not offer its investors redemption or other similar liquidity rights except in extraordinary circumstances.
2. The exemption applies without regard to the number of venture capital funds advised by the adviser or the size of such funds.
3. The exemption is not mandatory, thus an adviser may voluntarily register.
4. The SEC has proposed a grandfathering provision for those existing funds that make venture capital investments and hold themselves out as venture capital funds. The provision applies to any venture capital fund that (i) represented to investors and potential investors at the time the fund offered its securities that it is a venture capital fund; (ii) has sold securities to one or more investors prior to December 31, 2010; and (iii) does not sell any securities to, including accepting any additional capital commitments from, any person after July 21, 2011.
Complete article
Wednesday, November 24, 2010
Alpha Males Take Greater Risks: Study Links Finger Length to Behavior
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Potential investors might wish to examine the fingers of their financial advisor prior to signing over any savings. A new study from Concordia University has found the length between the second and fourth finger is an indicator of high levels of prenatal testosterone, risk-taking and potential financial success in men.
The findings, published in the journal of Personality and Individual Differences, suggest that alpha males may take greater risks in relationships, on the squash court and in the financial market.
"Previous studies have linked high testosterone levels with risky behaviour and financial success," says senior researcher Gad Saad, Concordia University Research Chair in Evolutionary Behavioral Sciences and Darwinian Consumption as well as a marketing professor at the John Molson School of Business. "We investigated the relationship between prenatal testosterone and various risk proclivities. Our findings show an association between high testosterone and risk-taking among males in three domains: recreational, social and financial."
"Since women tend to be attracted to men who are fit, assertive and rich, men are apt to take risks with sports, people and money to be attractive to potential mates. What's interesting is that this tendency is influenced by testosterone exposure -- more testosterone in the womb can lead to more risks in the rink, the bar and the trading floor in later in life," says first author and Concordia doctoral student, Eric Stenstrom.
Link only observed in men
Saad and his team analyzed risk-taking among 413 male and female students using a survey. "Prenatal testosterone exposure not only influences fetal brain development," adds study co-author and graduate student, Zack Mendenhall, "but it also slows the growth of the index finger relative to the sum of the four fingers excluding the thumb."
The change in finger length produced by testosterone provides a handy measure of prenatal testosterone exposure. The study compared the length of the index finger with all four digits (known as the rel2 ratio) and found that those with lower ratios were more likely to engage in risk-taking. These findings were further confirmed by the additional measurement of the ratio between the index and ring finger. These correlations were only observed in men.
"A possible explanation for the null effects in women is that they do not engage in risky behaviour as a mating signal, whereas men do," says Professor Saad.
Potential investors might wish to examine the fingers of their financial advisor prior to signing over any savings. A new study from Concordia University has found the length between the second and fourth finger is an indicator of high levels of prenatal testosterone, risk-taking and potential financial success in men.
The findings, published in the journal of Personality and Individual Differences, suggest that alpha males may take greater risks in relationships, on the squash court and in the financial market.
"Previous studies have linked high testosterone levels with risky behaviour and financial success," says senior researcher Gad Saad, Concordia University Research Chair in Evolutionary Behavioral Sciences and Darwinian Consumption as well as a marketing professor at the John Molson School of Business. "We investigated the relationship between prenatal testosterone and various risk proclivities. Our findings show an association between high testosterone and risk-taking among males in three domains: recreational, social and financial."
"Since women tend to be attracted to men who are fit, assertive and rich, men are apt to take risks with sports, people and money to be attractive to potential mates. What's interesting is that this tendency is influenced by testosterone exposure -- more testosterone in the womb can lead to more risks in the rink, the bar and the trading floor in later in life," says first author and Concordia doctoral student, Eric Stenstrom.
Link only observed in men
Saad and his team analyzed risk-taking among 413 male and female students using a survey. "Prenatal testosterone exposure not only influences fetal brain development," adds study co-author and graduate student, Zack Mendenhall, "but it also slows the growth of the index finger relative to the sum of the four fingers excluding the thumb."
The change in finger length produced by testosterone provides a handy measure of prenatal testosterone exposure. The study compared the length of the index finger with all four digits (known as the rel2 ratio) and found that those with lower ratios were more likely to engage in risk-taking. These findings were further confirmed by the additional measurement of the ratio between the index and ring finger. These correlations were only observed in men.
"A possible explanation for the null effects in women is that they do not engage in risky behaviour as a mating signal, whereas men do," says Professor Saad.
High Level of Practical Intelligence a Factor in Entrepreneurial Success
Ω
General intelligence is not enough. Practical intelligence can mean the difference between entrepreneurial success or failure.
Psychologists have identified multiple kinds of intelligence, but a University of Maryland researcher's study has found one--practical intelligence--to be an indicator of likely entrepreneurial success.
J. Robert Baum, Director of Entrepreneurship Research at the University of Maryland, defines practical intelligence as "an experience based accumulation of skills and explicit knowledge as well as the ability to apply that knowledge to solve every day problems," he said. In other words, practical intelligence can be referred to as "know-how" or common sense.
Learning orientation has an impact on entrepreneurship success. Some people learn little from their experiences and therefore don't acquire the practical intelligence necessary to begin a successful business venture, said Baum. Practical intelligence is the result of an experimental hands-on operating style that leads to specific learning. "Those with high practical intelligence tend to develop useful knowledge by doing and learning, not by watching or reading," he said.
People with strong general intelligence sometimes fail at business. Conversely, there are plenty of examples of those with comparatively lower IQs who are successful in business. Practical intelligence helps explain this surprising phenomenon, says Baum.
To determine how practical intelligence impacted entrepreneurs' success, Baum and his fellow researchers, Barbara Jean Bird of American University and Sheetah Singh of the University of Maryland, sought evidence that the interaction of entrepreneurs' practical intelligence and growth goals led to increased venture success.
In other words, can practical intelligence explain why some are successful and others are not? Yes, to some degree, it can, he said.
In fact, the model of practical intelligence interacting with growth goals successfully predicted venture increase in sales and employment 27 percent of the time.
Comparing responses to a set of business scenarios from founders of newly started businesses and founder/CEO's of successful and established printing companies, they were able to identify those founders with different levels of practical intelligence.
"If there was little difference in the comparative answers, the newcomer was considered to have high practical intelligence. A wide variance of answers indicated low practical intelligence," Baum said.
There are many kinds of intelligence, including emotional, social and creative. Practical intelligence is just one; but a critical one for entrepreneurial success, said Baum.
The study will be published in an upcoming issue of Personnel Psychology.
Other factors needed for entrepreneurial success include a demand for the product from customers that will result in a profit, having financial resources, industry experience and a strategic plan that includes specific goals.
Baum also said personal characteristics are important as well in venture creation and growth.
For example, entrepreneurs typically have confidence in what they are undertaking and have the ability to make quick decisions and take action. They are also willing to use their knowledge or what they have learned to experiment and try new approaches to improve the process or product.
Practical intelligence is gained by learning from past experiences and using that knowledge to enhance the enterprise, said Baum.
"A person with high practical intelligence who starts and grows a company in a specific industry and who has specific experience and has learned specific things from that experience and who has specific venture growth goals will grow their company faster and more successfully that someone who does not have the same level of practical intelligence," said Baum.
General intelligence is not enough. Practical intelligence can mean the difference between entrepreneurial success or failure.
Psychologists have identified multiple kinds of intelligence, but a University of Maryland researcher's study has found one--practical intelligence--to be an indicator of likely entrepreneurial success.
J. Robert Baum, Director of Entrepreneurship Research at the University of Maryland, defines practical intelligence as "an experience based accumulation of skills and explicit knowledge as well as the ability to apply that knowledge to solve every day problems," he said. In other words, practical intelligence can be referred to as "know-how" or common sense.
Learning orientation has an impact on entrepreneurship success. Some people learn little from their experiences and therefore don't acquire the practical intelligence necessary to begin a successful business venture, said Baum. Practical intelligence is the result of an experimental hands-on operating style that leads to specific learning. "Those with high practical intelligence tend to develop useful knowledge by doing and learning, not by watching or reading," he said.
People with strong general intelligence sometimes fail at business. Conversely, there are plenty of examples of those with comparatively lower IQs who are successful in business. Practical intelligence helps explain this surprising phenomenon, says Baum.
To determine how practical intelligence impacted entrepreneurs' success, Baum and his fellow researchers, Barbara Jean Bird of American University and Sheetah Singh of the University of Maryland, sought evidence that the interaction of entrepreneurs' practical intelligence and growth goals led to increased venture success.
In other words, can practical intelligence explain why some are successful and others are not? Yes, to some degree, it can, he said.
In fact, the model of practical intelligence interacting with growth goals successfully predicted venture increase in sales and employment 27 percent of the time.
Comparing responses to a set of business scenarios from founders of newly started businesses and founder/CEO's of successful and established printing companies, they were able to identify those founders with different levels of practical intelligence.
"If there was little difference in the comparative answers, the newcomer was considered to have high practical intelligence. A wide variance of answers indicated low practical intelligence," Baum said.
There are many kinds of intelligence, including emotional, social and creative. Practical intelligence is just one; but a critical one for entrepreneurial success, said Baum.
The study will be published in an upcoming issue of Personnel Psychology.
Other factors needed for entrepreneurial success include a demand for the product from customers that will result in a profit, having financial resources, industry experience and a strategic plan that includes specific goals.
Baum also said personal characteristics are important as well in venture creation and growth.
For example, entrepreneurs typically have confidence in what they are undertaking and have the ability to make quick decisions and take action. They are also willing to use their knowledge or what they have learned to experiment and try new approaches to improve the process or product.
Practical intelligence is gained by learning from past experiences and using that knowledge to enhance the enterprise, said Baum.
"A person with high practical intelligence who starts and grows a company in a specific industry and who has specific experience and has learned specific things from that experience and who has specific venture growth goals will grow their company faster and more successfully that someone who does not have the same level of practical intelligence," said Baum.
Monday, November 22, 2010
NVCA Commends Makower Study on the FDA Impact on Med Tech Innovation
Contact: Emily Mendell, NVCA. 610-565-3904, emendell@nvca.org
Today the National Venture Capital Association commended the release of a new study led by professor and entrepreneur, Dr.Josh Makower, entitled "FDA Impact on U.S. Medical Technology Innovation."
The study, which was the first of its kind and conducted with support from the NVCA and the Medical Device Manufacturers Association (MDMA), surveyed more than 200 medical technology company CEOs regarding their experiences with the Food and Drug Administration (FDA) approval process for new medical technologies. The study found that inefficiencies at the FDA have led to U.S. medical technologies being available in Europe on average two years sooner than in the United States.
NVCA President Mark Heesen stressed the importance of the study to U.S. patients and
the economy while committing to continue working with the FDA on improving the
approval pathway:
“This study quantifies, in no uncertain terms, the challenge that small medical
device companies have when seeking approval for their products in the United States,”
said Heesen. “The current approval path is paved with inefficiency and uncertainty for
our most important innovators, compelling them to launch their medical breakthroughs
overseas years before offering them here in the U.S. Not only does this environment hurt American patients who would benefit from these innovations sooner rather than later, but it also hurts our entire health care system and the economy. We feel strongly that there are meaningful changes that can be made at the FDA which would improve efficiency and transparency without compromising on safety. We will continue working with the FDA to explore these remedies and feel confident that officials are committed to long term solutions that will help advance important medical breakthroughs in this country.”
About NVCA
The National Venture Capital Association (NVCA) represents more than 400 venture
capital firms in the United States. NVCA's mission is to foster greater understanding of
the importance of venture capital to the U.S. economy and support entrepreneurial
activity and innovation. According to a 2008 Global Insight study, venture-backed
companies accounted for 12.1 million jobs and $2.9 trillion in revenue in the United
States in 2008. The NVCA represents the public policy interests of the venture capital
community, strives to maintain high professional standards, provides reliable industry
data, sponsors professional development, and facilitates interaction among its members.
The Medical Device Manufacturers Association (MDMA) also applauded the efforts by one of America’s leading med-tech entrepreneurs, Dr. Josh Makower, to examine the impact of the current regulatory environment on medical device innovation. Dr. Makower led a study that details how patients in Europe are getting access to new therapies an average of two years before patients in the United States due to regulatory challenges at the FDA.
MDMA President and CEO Mark Leahey noted the importance of working together to protect America’s leadership position in medical technology:
“This powerful study provides compelling evidence of what we have been hearing for years at MDMA: the current regulatory environment is adversely impacting innovation, patient care and job-creation here in the United States. We must all work together to ensure that the FDA’s dual mission to protect and promote the public health maintains a balance that supports innovation and improves the lives of patients.
MDMA members who participated in this study are at the forefront of developing new products to improve our quality of life. They are the small and mid-sized companies that are helping to turn around this economy, and ignite the entrepreneurial spirit that makes the United States so unique. It is critical to support their efforts to develop tomorrow’s medical advancements, and that American patients and workers are the beneficiaries of American innovation.”
Today the National Venture Capital Association commended the release of a new study led by professor and entrepreneur, Dr.Josh Makower, entitled "FDA Impact on U.S. Medical Technology Innovation."
The study, which was the first of its kind and conducted with support from the NVCA and the Medical Device Manufacturers Association (MDMA), surveyed more than 200 medical technology company CEOs regarding their experiences with the Food and Drug Administration (FDA) approval process for new medical technologies. The study found that inefficiencies at the FDA have led to U.S. medical technologies being available in Europe on average two years sooner than in the United States.
NVCA President Mark Heesen stressed the importance of the study to U.S. patients and
the economy while committing to continue working with the FDA on improving the
approval pathway:
“This study quantifies, in no uncertain terms, the challenge that small medical
device companies have when seeking approval for their products in the United States,”
said Heesen. “The current approval path is paved with inefficiency and uncertainty for
our most important innovators, compelling them to launch their medical breakthroughs
overseas years before offering them here in the U.S. Not only does this environment hurt American patients who would benefit from these innovations sooner rather than later, but it also hurts our entire health care system and the economy. We feel strongly that there are meaningful changes that can be made at the FDA which would improve efficiency and transparency without compromising on safety. We will continue working with the FDA to explore these remedies and feel confident that officials are committed to long term solutions that will help advance important medical breakthroughs in this country.”
About NVCA
The National Venture Capital Association (NVCA) represents more than 400 venture
capital firms in the United States. NVCA's mission is to foster greater understanding of
the importance of venture capital to the U.S. economy and support entrepreneurial
activity and innovation. According to a 2008 Global Insight study, venture-backed
companies accounted for 12.1 million jobs and $2.9 trillion in revenue in the United
States in 2008. The NVCA represents the public policy interests of the venture capital
community, strives to maintain high professional standards, provides reliable industry
data, sponsors professional development, and facilitates interaction among its members.
The Medical Device Manufacturers Association (MDMA) also applauded the efforts by one of America’s leading med-tech entrepreneurs, Dr. Josh Makower, to examine the impact of the current regulatory environment on medical device innovation. Dr. Makower led a study that details how patients in Europe are getting access to new therapies an average of two years before patients in the United States due to regulatory challenges at the FDA.
MDMA President and CEO Mark Leahey noted the importance of working together to protect America’s leadership position in medical technology:
“This powerful study provides compelling evidence of what we have been hearing for years at MDMA: the current regulatory environment is adversely impacting innovation, patient care and job-creation here in the United States. We must all work together to ensure that the FDA’s dual mission to protect and promote the public health maintains a balance that supports innovation and improves the lives of patients.
MDMA members who participated in this study are at the forefront of developing new products to improve our quality of life. They are the small and mid-sized companies that are helping to turn around this economy, and ignite the entrepreneurial spirit that makes the United States so unique. It is critical to support their efforts to develop tomorrow’s medical advancements, and that American patients and workers are the beneficiaries of American innovation.”
Thursday, October 21, 2010
Connecticut Innovations has launched the Connecticut Innovations Pre-Seed Fun
$4 million of new funding now available
Connecticut Innovations (CI), the state’s quasi-public authority responsible for technology investing and innovation development, has launched the Connecticut Innovations Pre-Seed Fund. The objective of the fund is to support the formation of new technology companies and jobs.
“This new fund enables CI to broaden its reach and impact,” said Peter Longo, CI president and executive director. “It enhances CI’s ability to support very early-stage technology ventures. By providing both guidance and funding at the earliest stages, CI will be helping to build brand new technology companies and local jobs, as well as cultivate candidates for funding under CI’s Seed Investment Fund and Eli Whitney Fund.”
The Pre-Seed Fund provides direct financial assistance in the form of loans to Connecticut-based startup and early-stage technology companies. The fund, created pursuant to Public Act 10-75, “An Act Concerning the Recommendations of the Majority Leaders’ Job Growth Roundtable,” replaces CI’s Pre-Seed Support Services Program. To date, $4 million has been allocated to the fund. Companies can apply for loans of up to $150,000, and funding may be used for a wide range of startup expenses such as accounting; legal; intellectual property development; prototype development; business plan assistance and development; technology reviews, assessment or development; market analysis; market entry strategy development; and hiring resources, consultants or employees. Flexible repayment terms are offered.
Applications will be assessed for uniqueness, value and innovativeness of the technology, the problem the technology solves, commercialization potential, market potential, management expertise, and evidence of private matching funds equal to 50% of the financial assistance requested.
CI is now accepting applications under the new Pre-Seed Fund. Interested parties can find information, terms and conditions, and the application online at: www.ctinnovations.com/preseed.
About Connecticut Innovations, Inc.
Connecticut Innovations (CI) is a quasi-public organization dedicated to driving a vibrant, entrepreneurial, technology-based economy in Connecticut. CI stimulates high-tech growth by investing in: early-stage Connecticut technology companies, university/industry research collaborations, technology transfer, and clean energy initiatives through the Connecticut Clean Energy Fund. CI also fosters collaboration among government, business, nonprofit and academic organizations to advance technology growth and promotes public policies consistent with CI’s mission.
Connecticut Innovations (CI), the state’s quasi-public authority responsible for technology investing and innovation development, has launched the Connecticut Innovations Pre-Seed Fund. The objective of the fund is to support the formation of new technology companies and jobs.
“This new fund enables CI to broaden its reach and impact,” said Peter Longo, CI president and executive director. “It enhances CI’s ability to support very early-stage technology ventures. By providing both guidance and funding at the earliest stages, CI will be helping to build brand new technology companies and local jobs, as well as cultivate candidates for funding under CI’s Seed Investment Fund and Eli Whitney Fund.”
The Pre-Seed Fund provides direct financial assistance in the form of loans to Connecticut-based startup and early-stage technology companies. The fund, created pursuant to Public Act 10-75, “An Act Concerning the Recommendations of the Majority Leaders’ Job Growth Roundtable,” replaces CI’s Pre-Seed Support Services Program. To date, $4 million has been allocated to the fund. Companies can apply for loans of up to $150,000, and funding may be used for a wide range of startup expenses such as accounting; legal; intellectual property development; prototype development; business plan assistance and development; technology reviews, assessment or development; market analysis; market entry strategy development; and hiring resources, consultants or employees. Flexible repayment terms are offered.
Applications will be assessed for uniqueness, value and innovativeness of the technology, the problem the technology solves, commercialization potential, market potential, management expertise, and evidence of private matching funds equal to 50% of the financial assistance requested.
CI is now accepting applications under the new Pre-Seed Fund. Interested parties can find information, terms and conditions, and the application online at: www.ctinnovations.com/preseed.
About Connecticut Innovations, Inc.
Connecticut Innovations (CI) is a quasi-public organization dedicated to driving a vibrant, entrepreneurial, technology-based economy in Connecticut. CI stimulates high-tech growth by investing in: early-stage Connecticut technology companies, university/industry research collaborations, technology transfer, and clean energy initiatives through the Connecticut Clean Energy Fund. CI also fosters collaboration among government, business, nonprofit and academic organizations to advance technology growth and promotes public policies consistent with CI’s mission.
Tuesday, October 19, 2010
CVG Member Radius Ventures, LLC leads financing
Radius Ventures, LLC (“Radius”). Radius, a focused health and life sciences venture fund, hs led a financing round for Healthsense, Inc., a leading provider of next-generation wireless sensors and remote monitoring solutions for the senior care market. Radius was joined in the round by Healthsense’s existing investors, including Ziegler HealthVest Partners, LP and its affiliate The Ziegler Companies, Inc. Healthsense has emerged as a leader in Wi-Fi sensors, nurse call systems and advanced algorithmically-enabled remote monitoring solutions. Since the initial introduction of its first commercial product in 2006, the company has built a large installed base of customers and demonstrated substantial year-over-year growth.
The Radius financing supports Healthsense’s goal of accelerating its sales and marketing efforts and expanding the company’s platform into new markets. “Radius has impressed the entire Healthsense team with its unique approach, outstanding network of healthcare industry executives, and track record of supporting the rapid growth of its portfolio companies,” stated Brian J. Bischoff, President & CEO of Healthsense.
“Radius has been studying the senior care market for several years and searching for an emerging company with best-of-breed technology, a well-conceived business model, and the potential for rapid and profitable growth. Healthsense has built a highly differentiated, integrated remote monitoring platform, which scales broadly across a range of healthcare applications targeting the senior care market – the company has developed an exciting and competitive product offering which delivers great value to its customers. The Healthsense team is very innovative, strong and agile, and unique in how they have engaged their customers in designing and deploying technology and processes to transform healthcare delivery.” said Daniel C. Lubin, Managing Partner at Radius.
The partnership with Radius marks a transition point for Healthsense in terms of its corporate development and provides the company with both significant financial resources and unique access to world-class intellectual capital. “Many firms talk about how their networks can drive organizational success – Radius showed us. The caliber of people that we’ve worked with proved to us that the Radius team is willing to jump in and help us firmly establish our leadership position in deploying technology solutions for the care of older adults,” said Bischoff.
About Radius Ventures, LLC. Founded in 1997, Radius Ventures, LLC (“Radius”) is a health and life sciences focused venture capital firm that manages in excess of $200 million. Radius deploys capital across the industry’s key sectors including medical devices, biotechnology, pharmaceuticals, services, and healthcare/life sciences information technology. The firm pursues a highly engaged investment style by leveraging the expertise of its internal team and by providing access to its extensive network of senior industry and professional relationships. For more information, visit
The Radius financing supports Healthsense’s goal of accelerating its sales and marketing efforts and expanding the company’s platform into new markets. “Radius has impressed the entire Healthsense team with its unique approach, outstanding network of healthcare industry executives, and track record of supporting the rapid growth of its portfolio companies,” stated Brian J. Bischoff, President & CEO of Healthsense.
“Radius has been studying the senior care market for several years and searching for an emerging company with best-of-breed technology, a well-conceived business model, and the potential for rapid and profitable growth. Healthsense has built a highly differentiated, integrated remote monitoring platform, which scales broadly across a range of healthcare applications targeting the senior care market – the company has developed an exciting and competitive product offering which delivers great value to its customers. The Healthsense team is very innovative, strong and agile, and unique in how they have engaged their customers in designing and deploying technology and processes to transform healthcare delivery.” said Daniel C. Lubin, Managing Partner at Radius.
The partnership with Radius marks a transition point for Healthsense in terms of its corporate development and provides the company with both significant financial resources and unique access to world-class intellectual capital. “Many firms talk about how their networks can drive organizational success – Radius showed us. The caliber of people that we’ve worked with proved to us that the Radius team is willing to jump in and help us firmly establish our leadership position in deploying technology solutions for the care of older adults,” said Bischoff.
About Radius Ventures, LLC. Founded in 1997, Radius Ventures, LLC (“Radius”) is a health and life sciences focused venture capital firm that manages in excess of $200 million. Radius deploys capital across the industry’s key sectors including medical devices, biotechnology, pharmaceuticals, services, and healthcare/life sciences information technology. The firm pursues a highly engaged investment style by leveraging the expertise of its internal team and by providing access to its extensive network of senior industry and professional relationships. For more information, visit
Connecticut Venture Group members Canaan Partners and Radius Ventures co-lead $30 million financing
Connecticut Venture Group members Canaan Partners and Radius Ventures have co-led a $30 Million Series F financing designed to support ENDOGASTRIC SOLUTIONS (EGS),the recognized leader in the emerging field of Natural Orifice Surgery (NOS), through profitability. Existing investors Advanced Technology Ventures, MPM Capital, Foundation Medical Partners, Chicago Growth Partners, and De Novo Ventures joined to finalize the investment round.
Brent Ahrens, General Partner of Canaan Partners, commented, “EndoGastric Solutions sits in the unique position of offering patients and surgeons therapeutic solutions to significant unmet clinical needs. The company has demonstrated a clinical advantage, developed a business model to bring this value to patients, and built a management team that knows how to execute. We are excited to support the company in accelerating the adoption of these innovative procedures and building a franchise with significant value.”
Kathleen Regan, Venture Partner of Radius Ventures, added, “It is rare to find a company experiencing this level of growth and addressing markets as substantial as reflux and obesity. We believe firmly that EndoGastric Solutions is on the path to establishing NOS as the standard of care in these two areas.” Following the investment, Brent Ahrens and Kathleen Regan joined the Board of Directors for EndoGastric Solutions. Rockport Ventures advised on the transaction.
Brent Ahrens, General Partner of Canaan Partners, commented, “EndoGastric Solutions sits in the unique position of offering patients and surgeons therapeutic solutions to significant unmet clinical needs. The company has demonstrated a clinical advantage, developed a business model to bring this value to patients, and built a management team that knows how to execute. We are excited to support the company in accelerating the adoption of these innovative procedures and building a franchise with significant value.”
Kathleen Regan, Venture Partner of Radius Ventures, added, “It is rare to find a company experiencing this level of growth and addressing markets as substantial as reflux and obesity. We believe firmly that EndoGastric Solutions is on the path to establishing NOS as the standard of care in these two areas.” Following the investment, Brent Ahrens and Kathleen Regan joined the Board of Directors for EndoGastric Solutions. Rockport Ventures advised on the transaction.
Insight Venture Partners Goes Into OverDrive
(Cleveland, OH) - October 18, 2010 - OverDrive, the leading global distributor of eBooks, audiobooks and digital content services to retailers, libraries, and schools, announced today that Insight Venture Partners, a leading private equity firm focused on technology companies, has made a major investment in the company. The investment, subject to regulatory approval, will provide additional resources and capital to help fuel the company's impressive growth.
Since its inception in 1986, OverDrive has pioneered the development of hosted solutions for eBooks and other digital media. OverDrive has long-term trusted partnerships with leading publishers including Random House, HarperCollins, Penguin, Hachette, McGraw-Hill, John Wiley, and hundreds of others. Today, OverDrive operates a comprehensive, secure digital content repository (Content Reserve) and fulfillment platform for eBooks, audiobooks, music, and video for a global network of more than 11,000 retailers, libraries, schools, and other digital channels.
"We are particularly excited about OverDrive's strong growth, market leadership, and commitment to customers," said Larry Handen, managing director at Insight Venture Partners. "Our investment coincides with the 20th consecutive quarter of continuous profitability. This is a tribute to the company's management team."
"Insight values OverDrive's partnerships with leading librarians, educators, publishers, and authors, and how we help them benefit from new business models and technologies for their eBook and digital content offerings," said Steve Potash, OverDrive founder and CEO. "The combination of Insight's focus on technology, software, and Internet markets, along with their vast financial and human capital resources, makes them an extraordinary partner to help advance OverDrive's mission of maximizing the value we provide to our publisher and channel partners."
OverDrive distributes one of the world's largest catalogs of eBooks, audiobooks and multimedia, with more than 500,000 premium copyrighted titles. The collection includes one of the world's largest catalogs of eBooks in the EPUB format, the open standard for eBooks developed by the International Digital Publishing Forum (IDPF). OverDrive will soon be releasing eBook applications for AndroidTM, iPhone®, and iPadTM, all of which will display EPUB eBooks in their native format and include multimedia support. By providing EPUB eBooks in their native format -- which requires no conversion to additional formats -- OverDrive simplifies the management and fulfillment processes for publishers, retailers, libraries, and consumers.
"We are big believers in the future of digital books and e-reading for library patrons, students and consumers," noted Peter Sobiloff, managing director at Insight Venture Partners, who, together with Larry Handen, will join OverDrive's board of directors. "We look forward to leveraging Insight's capital and network to help accelerate OverDrive's growth and expand its portfolio of solutions."
OverDrive continues to extend its international presence with the addition of new library and education partners in London, Dublin, Ankara, and Amsterdam. Leading online booksellers who recently went live with popular eBooks supplied by OverDrive include Gato Sabido (Brazil), Xue-Si (Taiwan), Avusa Retail (South Africa), and Papataka (Indonesia). These international booksellers join Borders.com, Barnesandnoble.com, BooksonBoard.com, LivrariaCultura.com.br, Waterstones.co.uk, WHSmith.co.uk, and dozens of other online retailers selling download audiobooks and/or eBooks supplied by OverDrive.
Sagent Advisors Inc. served as financial advisor and Miller Goler Faeges LLP served as legal advisor to OverDrive. O'Melveny & Myers LLP served as legal advisor to Insight Venture Partners.
About OverDrive, Inc.
OverDrive is a leading full-service digital distributor of eBooks, audiobooks, music, and video. We deliver secure management, DRM protection, and download fulfillment services for hundreds of publishers and thousands of libraries, schools, and retailers, serving millions of end users globally. OverDrive has been named to the EContent 100 as a company that matters most in the digital content industry. Founded in 1986, OverDrive is based in Cleveland, OH. www.overdrive.com. To view libraries and schools that are members of the OverDrive network, visit http://search.overdrive.com
About Insight Venture Partners
Founded in 1995, Insight Venture Partners is a leading private equity and venture capital firm focused on the global software, Internet and data services industries. Insight's team is composed of experienced investors and operating executives with more than 150 years of collective experience in these industries, and a capital base of $3 billion to support the companies in which they invest. The company is headquartered in New York City. www.insightpartners.com
Since its inception in 1986, OverDrive has pioneered the development of hosted solutions for eBooks and other digital media. OverDrive has long-term trusted partnerships with leading publishers including Random House, HarperCollins, Penguin, Hachette, McGraw-Hill, John Wiley, and hundreds of others. Today, OverDrive operates a comprehensive, secure digital content repository (Content Reserve) and fulfillment platform for eBooks, audiobooks, music, and video for a global network of more than 11,000 retailers, libraries, schools, and other digital channels.
"We are particularly excited about OverDrive's strong growth, market leadership, and commitment to customers," said Larry Handen, managing director at Insight Venture Partners. "Our investment coincides with the 20th consecutive quarter of continuous profitability. This is a tribute to the company's management team."
"Insight values OverDrive's partnerships with leading librarians, educators, publishers, and authors, and how we help them benefit from new business models and technologies for their eBook and digital content offerings," said Steve Potash, OverDrive founder and CEO. "The combination of Insight's focus on technology, software, and Internet markets, along with their vast financial and human capital resources, makes them an extraordinary partner to help advance OverDrive's mission of maximizing the value we provide to our publisher and channel partners."
OverDrive distributes one of the world's largest catalogs of eBooks, audiobooks and multimedia, with more than 500,000 premium copyrighted titles. The collection includes one of the world's largest catalogs of eBooks in the EPUB format, the open standard for eBooks developed by the International Digital Publishing Forum (IDPF). OverDrive will soon be releasing eBook applications for AndroidTM, iPhone®, and iPadTM, all of which will display EPUB eBooks in their native format and include multimedia support. By providing EPUB eBooks in their native format -- which requires no conversion to additional formats -- OverDrive simplifies the management and fulfillment processes for publishers, retailers, libraries, and consumers.
"We are big believers in the future of digital books and e-reading for library patrons, students and consumers," noted Peter Sobiloff, managing director at Insight Venture Partners, who, together with Larry Handen, will join OverDrive's board of directors. "We look forward to leveraging Insight's capital and network to help accelerate OverDrive's growth and expand its portfolio of solutions."
OverDrive continues to extend its international presence with the addition of new library and education partners in London, Dublin, Ankara, and Amsterdam. Leading online booksellers who recently went live with popular eBooks supplied by OverDrive include Gato Sabido (Brazil), Xue-Si (Taiwan), Avusa Retail (South Africa), and Papataka (Indonesia). These international booksellers join Borders.com, Barnesandnoble.com, BooksonBoard.com, LivrariaCultura.com.br, Waterstones.co.uk, WHSmith.co.uk, and dozens of other online retailers selling download audiobooks and/or eBooks supplied by OverDrive.
Sagent Advisors Inc. served as financial advisor and Miller Goler Faeges LLP served as legal advisor to OverDrive. O'Melveny & Myers LLP served as legal advisor to Insight Venture Partners.
About OverDrive, Inc.
OverDrive is a leading full-service digital distributor of eBooks, audiobooks, music, and video. We deliver secure management, DRM protection, and download fulfillment services for hundreds of publishers and thousands of libraries, schools, and retailers, serving millions of end users globally. OverDrive has been named to the EContent 100 as a company that matters most in the digital content industry. Founded in 1986, OverDrive is based in Cleveland, OH. www.overdrive.com. To view libraries and schools that are members of the OverDrive network, visit http://search.overdrive.com
About Insight Venture Partners
Founded in 1995, Insight Venture Partners is a leading private equity and venture capital firm focused on the global software, Internet and data services industries. Insight's team is composed of experienced investors and operating executives with more than 150 years of collective experience in these industries, and a capital base of $3 billion to support the companies in which they invest. The company is headquartered in New York City. www.insightpartners.com
MA Company Gets Asian, European and MA VC $
1366 Technologies, whose innovative approaches to solar manufacturing have the potential to halve the cost of solar energy, announced today the close of a $20 million Series B financing bringing the Company's total amount raised to $37.55 million. Korea's Hanwha Chemical and Ventizz Capital Fund IV L.P., one of Europe's leading clean technology investors, join return investors North Bridge Venture Partners and Polaris Venture Partners in backing the company. The new round will enable 1366 to take its revolutionary Direct Wafer technology into production, a milestone the company will achieve well in advance of its original plan.
North Bridge Venture Partners and Polaris Venture Partners are both located in Waltham MA.
"During the past two years, we have kept our cash position strong and focused on solving the key manufacturing challenges in silicon photovoltaics," said Frank van Mierlo, CEO, 1366 Technologies. "We've managed expectations and steadily built our credibility. Now, with this investment, we're moving towards manufacturing. Our goal is to bring our transformative Direct Wafer technology into production and deliver the manufacturing innovations that will make solar electricity cheaper than coal."
1366's Direct Wafer technology forms a 156mm multi-crystalline wafer directly from molten silicon in a semi-continuous, capital- and silicon-efficient process. This is in stark contrast to standard multi-crystalline wafer manufacturing which involves a multi-step, batch process of ingot casting, blocking, squaring, and sawing that wastes up to 50% of the high-value silicon. By using standard silicon feedstocks and producing compatible wafers, Direct Wafer integrates into the existing silicon photovoltaics' supply chain, providing cost savings to cell customers without added complexity. The Company's rapid progress during the last year was triggered by a $4 million grant the company received from the Department of Energy's ARPA-E program in December of 2009.
In addition to its investment role, Hanwha Chemical, which just recently acquired China's SolarFun, is also planning to be a 1366 Direct Wafer customer. "Hanwha is constantly seeking to reinvent the way we deliver solar energy to the world in a more efficient and truly sustainable manner," said Ki-joon Hong, CEO of Hanwha Chemical and head of Hanwha's Solar Business Unit. "Our partnership with 1366 marks a critical step in our common commitment to provide innovative solutions for high quality solar energy at a time when the world demand for solar power is rising steeply and governments are taking aggressive steps to cut carbon emissions."
"1366's philosophy is in line with our own: renewable energy technologies must be developed in a manner that avoids lengthy times to market and uncertain demand," said Bjorn Sondgerath, Managing Partner, Ventizz Private Equity AG which exclusively advises Ventizz Capital Fund IV L.P. "By focusing on the existing silicon solar supply chain, 1366 has eliminated the now common concerns associated with other approaches – significant capital investment and a prolonged horizon. We're excited to join their other investors and have every confidence that 1366's innovations will fundamentally change solar manufacturing."
"For us, one of the most obvious benefits to 1366's approach to silicon photovoltaics is that it doesn't require heavy investment," said Carmichael Roberts, Partner, North Bridge Venture Partners. "Relative to other transformative renewable energy technologies, the company's business model is not capital intensive. By focusing on high-value manufacturing technologies that increase cell efficiencies and reduce processing costs, 1366 has created an incredibly attractive value proposition. Their promise is exceptional and North Bridge is proud to name them among its portfolio companies."
For the past year, 1366 Technologies has been actively selling its Self-Aligned Cell, a technology exclusively licensed by MIT, which features innovative cell texturing and fine-line metallization to deliver higher efficiencies for cell manufacturers.
About 1366 Technologies
1366 Technologies' eliminates the cost and production challenges that have hampered solar power's ability to replace fossil fuels. The company combines breakthrough innovations in silicon cell architecture with lean manufacturing processes to make the world's most cost effective and commercially viable high efficiency solar cells. Developed by a veteran team of scientists, engineers and entrepreneurs, including MIT professor and photovoltaic industry expert Dr. Emanuel Sachs, the company's novel approach breaks the historic efficiency and cost tradeoff of photovoltaics. 1366 Technologies is headquartered in Lexington, MA. For more information, please visit www.1366tech.com.
North Bridge Venture Partners and Polaris Venture Partners are both located in Waltham MA.
"During the past two years, we have kept our cash position strong and focused on solving the key manufacturing challenges in silicon photovoltaics," said Frank van Mierlo, CEO, 1366 Technologies. "We've managed expectations and steadily built our credibility. Now, with this investment, we're moving towards manufacturing. Our goal is to bring our transformative Direct Wafer technology into production and deliver the manufacturing innovations that will make solar electricity cheaper than coal."
1366's Direct Wafer technology forms a 156mm multi-crystalline wafer directly from molten silicon in a semi-continuous, capital- and silicon-efficient process. This is in stark contrast to standard multi-crystalline wafer manufacturing which involves a multi-step, batch process of ingot casting, blocking, squaring, and sawing that wastes up to 50% of the high-value silicon. By using standard silicon feedstocks and producing compatible wafers, Direct Wafer integrates into the existing silicon photovoltaics' supply chain, providing cost savings to cell customers without added complexity. The Company's rapid progress during the last year was triggered by a $4 million grant the company received from the Department of Energy's ARPA-E program in December of 2009.
In addition to its investment role, Hanwha Chemical, which just recently acquired China's SolarFun, is also planning to be a 1366 Direct Wafer customer. "Hanwha is constantly seeking to reinvent the way we deliver solar energy to the world in a more efficient and truly sustainable manner," said Ki-joon Hong, CEO of Hanwha Chemical and head of Hanwha's Solar Business Unit. "Our partnership with 1366 marks a critical step in our common commitment to provide innovative solutions for high quality solar energy at a time when the world demand for solar power is rising steeply and governments are taking aggressive steps to cut carbon emissions."
"1366's philosophy is in line with our own: renewable energy technologies must be developed in a manner that avoids lengthy times to market and uncertain demand," said Bjorn Sondgerath, Managing Partner, Ventizz Private Equity AG which exclusively advises Ventizz Capital Fund IV L.P. "By focusing on the existing silicon solar supply chain, 1366 has eliminated the now common concerns associated with other approaches – significant capital investment and a prolonged horizon. We're excited to join their other investors and have every confidence that 1366's innovations will fundamentally change solar manufacturing."
"For us, one of the most obvious benefits to 1366's approach to silicon photovoltaics is that it doesn't require heavy investment," said Carmichael Roberts, Partner, North Bridge Venture Partners. "Relative to other transformative renewable energy technologies, the company's business model is not capital intensive. By focusing on high-value manufacturing technologies that increase cell efficiencies and reduce processing costs, 1366 has created an incredibly attractive value proposition. Their promise is exceptional and North Bridge is proud to name them among its portfolio companies."
For the past year, 1366 Technologies has been actively selling its Self-Aligned Cell, a technology exclusively licensed by MIT, which features innovative cell texturing and fine-line metallization to deliver higher efficiencies for cell manufacturers.
About 1366 Technologies
1366 Technologies' eliminates the cost and production challenges that have hampered solar power's ability to replace fossil fuels. The company combines breakthrough innovations in silicon cell architecture with lean manufacturing processes to make the world's most cost effective and commercially viable high efficiency solar cells. Developed by a veteran team of scientists, engineers and entrepreneurs, including MIT professor and photovoltaic industry expert Dr. Emanuel Sachs, the company's novel approach breaks the historic efficiency and cost tradeoff of photovoltaics. 1366 Technologies is headquartered in Lexington, MA. For more information, please visit www.1366tech.com.
Buddy Media Closes $23 Million Series C to Fund Massive Expansion
Institutional Venture Partners Leads Financing As Facebook Marketing Sector Matures
New York, NY, October 19, 2010 -- Buddy Media, the Facebook management system of choice for seven of the ten world’s largest advertisers, today announced it has raised $23 million in Series C funding to fuel its continued growth. Institutional Venture Partners (IVP), which has funded many of the best known digital brands like Netflix, Twitter and Zynga, led the new round and was joined by existing Buddy Media investors, including Softbank Capital, Greycroft Partners and Bay Partners.
The Buddy Media investment is the first by IVP in its latest fund, a $750 million later-stage venture capital and growth equity fund announced in August 2010. The expansion capital will be used to triple Buddy Media’s employee headcount to 300 in the next 18 months, as well as fund other marketing and growth initiatives.
In addition to the financing, Buddy Media announced several important milestones:
* The company now employs more than 100 people in its new 25,000 square foot offices in mid-town Manhattan
* More than 300 companies and agencies license the Buddy Media Platform, up from less than 100 earlier this year
* 7 of the top 10 largest global advertisers have selected the Buddy Media Platform as their preferred Facebook management system
* New customers signed in Q3 2010 include Johnson & Johnson, Crate & Barrel, Ford Motor Company, Donna Karan, Armani Exchange & GNC
* The company has grown software licensing revenue by approximately fifteen percent (15%) month-over-month in 2010
Buddy Media’s Facebook management system, The Buddy Media Platform, is web-based marketing software that provides companies global scale, secure architecture and straightforward administrative tools to connect with their current and future customers using the power of Facebook’s 550-million strong and growing social network.
Steve Harrick, General Partner at IVP, joined the Buddy Media Board of Directors and said, “Buddy Media’s first mover advantage, superior offering and experienced management team are all reasons for their exponential growth and for our investment in the company. In the same way major brands and agencies have invested in web-based software for sales or display advertising, they are now investing in marketing software for the largest two-way communications platform of all time: Facebook. We looked at every company in the space and Buddy Media is the clear leader by a wide margin.”
Forrester Research predicts that social media marketing spend on platforms such as Facebook will reach $3.1 billion by 2014, eclipsing both email and mobile.
Michael Lazerow, Chairman and CEO of Buddy Media, said, “The power and scale of Facebook is truly unrivaled, and we’re eager to continue delivering best in class solutions to our clients, through the support of our industry’s best known and well respected investors. Our clients have seen firsthand the power of Facebook, and with this expansion capital, we can grow our operations more quickly in order to meet accelerating demand.”
About Buddy Media
The Buddy Media Platform is the Facebook management system of choice for the world’s largest brands and agencies. With its scalable, secure architecture and straightforward administrative tools, the Buddy Media Platform revolutionizes the way brands connect with their current and future customers using the power of Facebook’s social connections. The Buddy Media Platform offers the only solution that allows brands to launch, maintain and measure their Facebook presence in any country and in any language. The Buddy Media Platform is the enterprise Facebook management system of choice for the largest brands in the world, including Anheuser Busch, Procter & Gamble, Starwood, Delta, Southwest Airlines, Unilever, Samsung, L’Oreal, the National Hockey League and others. Based in New York, Buddy Media shares four investors with Facebook and was one of the first companies selected by Facebook as a preferred developer partner. The company is backed by Institutional Venture Partners (IVP), Softbank Capital, European Founders Fund, Greycroft Partners, Facebook investor Ron Conway, Facebook board member Peter Thiel, Zynga founder and CEO Mark Pincus, Roger Ehrenberg, Howard Lindzon and others. For more information, visit http://www.buddymedia.com.
About Institutional Venture Partners (IVP)
With $3 billion of committed capital, Institutional Venture Partners (IVP) is one of the premier later-stage venture capital and growth equity firms in the United States. The partnership is currently investing IVP XIII, a $750 million later-stage fund focused on investments in rapidly growing technology and digital media companies. Founded in 1980, IVP has invested in over 300 companies, 85 of which have gone public. IVP has a 30 year IRR of 43.2% and is one of the top performing firms in the industry. IVP specializes in venture growth investments, industry rollups, founder liquidity transactions and select public market investments. Since its inception, IVP investments include such notable companies as ArcSight (ARST), Aspect Communications (ASPT), At Road (ARDI), Business.com (RHD), Clarify (CLFY), ComScore (SCOR), Concur Technologies (CNQR), Danger (MSFT), Digital River (DRIV), Form Factor (FORM), Foundry Networks (FDRY), HomeAway, Juniper Networks (JNPR), Kayak, LSI Corporation (LSI), Mobile 365 (SY), MySQL (ORCL), Netflix (NFLX), Polycom (PLCM), Quigo (TWX), Seagate (STX), Synchronoss (SNCR), Tivo (TIVO), Twitter, Websense (WBSN) and Zynga. For more information, visit http://www.ivp.com or follow IVP on Twitter: http://twitter.com/ivp.
New York, NY, October 19, 2010 -- Buddy Media, the Facebook management system of choice for seven of the ten world’s largest advertisers, today announced it has raised $23 million in Series C funding to fuel its continued growth. Institutional Venture Partners (IVP), which has funded many of the best known digital brands like Netflix, Twitter and Zynga, led the new round and was joined by existing Buddy Media investors, including Softbank Capital, Greycroft Partners and Bay Partners.
The Buddy Media investment is the first by IVP in its latest fund, a $750 million later-stage venture capital and growth equity fund announced in August 2010. The expansion capital will be used to triple Buddy Media’s employee headcount to 300 in the next 18 months, as well as fund other marketing and growth initiatives.
In addition to the financing, Buddy Media announced several important milestones:
* The company now employs more than 100 people in its new 25,000 square foot offices in mid-town Manhattan
* More than 300 companies and agencies license the Buddy Media Platform, up from less than 100 earlier this year
* 7 of the top 10 largest global advertisers have selected the Buddy Media Platform as their preferred Facebook management system
* New customers signed in Q3 2010 include Johnson & Johnson, Crate & Barrel, Ford Motor Company, Donna Karan, Armani Exchange & GNC
* The company has grown software licensing revenue by approximately fifteen percent (15%) month-over-month in 2010
Buddy Media’s Facebook management system, The Buddy Media Platform, is web-based marketing software that provides companies global scale, secure architecture and straightforward administrative tools to connect with their current and future customers using the power of Facebook’s 550-million strong and growing social network.
Steve Harrick, General Partner at IVP, joined the Buddy Media Board of Directors and said, “Buddy Media’s first mover advantage, superior offering and experienced management team are all reasons for their exponential growth and for our investment in the company. In the same way major brands and agencies have invested in web-based software for sales or display advertising, they are now investing in marketing software for the largest two-way communications platform of all time: Facebook. We looked at every company in the space and Buddy Media is the clear leader by a wide margin.”
Forrester Research predicts that social media marketing spend on platforms such as Facebook will reach $3.1 billion by 2014, eclipsing both email and mobile.
Michael Lazerow, Chairman and CEO of Buddy Media, said, “The power and scale of Facebook is truly unrivaled, and we’re eager to continue delivering best in class solutions to our clients, through the support of our industry’s best known and well respected investors. Our clients have seen firsthand the power of Facebook, and with this expansion capital, we can grow our operations more quickly in order to meet accelerating demand.”
About Buddy Media
The Buddy Media Platform is the Facebook management system of choice for the world’s largest brands and agencies. With its scalable, secure architecture and straightforward administrative tools, the Buddy Media Platform revolutionizes the way brands connect with their current and future customers using the power of Facebook’s social connections. The Buddy Media Platform offers the only solution that allows brands to launch, maintain and measure their Facebook presence in any country and in any language. The Buddy Media Platform is the enterprise Facebook management system of choice for the largest brands in the world, including Anheuser Busch, Procter & Gamble, Starwood, Delta, Southwest Airlines, Unilever, Samsung, L’Oreal, the National Hockey League and others. Based in New York, Buddy Media shares four investors with Facebook and was one of the first companies selected by Facebook as a preferred developer partner. The company is backed by Institutional Venture Partners (IVP), Softbank Capital, European Founders Fund, Greycroft Partners, Facebook investor Ron Conway, Facebook board member Peter Thiel, Zynga founder and CEO Mark Pincus, Roger Ehrenberg, Howard Lindzon and others. For more information, visit http://www.buddymedia.com.
About Institutional Venture Partners (IVP)
With $3 billion of committed capital, Institutional Venture Partners (IVP) is one of the premier later-stage venture capital and growth equity firms in the United States. The partnership is currently investing IVP XIII, a $750 million later-stage fund focused on investments in rapidly growing technology and digital media companies. Founded in 1980, IVP has invested in over 300 companies, 85 of which have gone public. IVP has a 30 year IRR of 43.2% and is one of the top performing firms in the industry. IVP specializes in venture growth investments, industry rollups, founder liquidity transactions and select public market investments. Since its inception, IVP investments include such notable companies as ArcSight (ARST), Aspect Communications (ASPT), At Road (ARDI), Business.com (RHD), Clarify (CLFY), ComScore (SCOR), Concur Technologies (CNQR), Danger (MSFT), Digital River (DRIV), Form Factor (FORM), Foundry Networks (FDRY), HomeAway, Juniper Networks (JNPR), Kayak, LSI Corporation (LSI), Mobile 365 (SY), MySQL (ORCL), Netflix (NFLX), Polycom (PLCM), Quigo (TWX), Seagate (STX), Synchronoss (SNCR), Tivo (TIVO), Twitter, Websense (WBSN) and Zynga. For more information, visit http://www.ivp.com or follow IVP on Twitter: http://twitter.com/ivp.
Monday, October 18, 2010
Venture capital investment increased in the Philadelphia area
Venture capital investment increased in the Philadelphia area... in the third quarter, according to the latest MoneyTree Report.
There were 31 venture capital financings totaling $136.3 million involving companies in the Philadelphia Metro Region...
The report defines the Philadelphia Metro Region as eastern Pennsylvania, South Jersey (including Princeton) and Delaware....
Both the number of financings... and the amount invested were higher than they were in the first or second quarters of this year or the third quarter of last year. The deals were the most since 38 in the fourth quarter of 2008 and the amount invested was the most since $142.1 million in the fourth quarter of 2009.
Complete article.
There were 31 venture capital financings totaling $136.3 million involving companies in the Philadelphia Metro Region...
The report defines the Philadelphia Metro Region as eastern Pennsylvania, South Jersey (including Princeton) and Delaware....
Both the number of financings... and the amount invested were higher than they were in the first or second quarters of this year or the third quarter of last year. The deals were the most since 38 in the fourth quarter of 2008 and the amount invested was the most since $142.1 million in the fourth quarter of 2009.
Complete article.
Pennsylvania's Halfpenny Technologies Secures $2.6M in Venture Capital Funding
Halfpenny Technologies, a provider of clinical data integration solutions based in Blue Bell, Pa., announced that it has secured $2.6 million in capital investment to expand its laboratory and electronic medical record integration offerings for hospitals, healthcare providers, payors and others, according to a company press release.
For the past decade, Halfpenny's healthcare connectivity and integration solutions have been connecting physician EMR systems with hospitals and laboratories. In just the past two years, the company has connected EMR systems in 1,500 practices to hospitals and labs. Halfpenny has successfully worked with EMR systems from more than 100 different vendors, enabling computerized physician order entry and structured laboratory results reporting.
The capital funding was co-led by Osage Venture Partners and Milestone Venture Partners, with LORE Associates also participating in the round.
For the past decade, Halfpenny's healthcare connectivity and integration solutions have been connecting physician EMR systems with hospitals and laboratories. In just the past two years, the company has connected EMR systems in 1,500 practices to hospitals and labs. Halfpenny has successfully worked with EMR systems from more than 100 different vendors, enabling computerized physician order entry and structured laboratory results reporting.
The capital funding was co-led by Osage Venture Partners and Milestone Venture Partners, with LORE Associates also participating in the round.
Saturday, October 16, 2010
Harvard Launches Innovation Incubator
Harvard University announced today the opening of its first lab for innovation and entrepreneurship with the goal of spurring innovative ventures across the University, at Harvard Business School (HBS) and in the Allston-Brighton neighborhood. The Harvard Innovation Lab will open in Fall 2011 in a building on Western Avenue in Allston that formerly housed public broadcasting's WGBH.
"For the University as well as for the economy and our nation, the importance of innovation cannot be overstated," said Harvard President Drew Gilpin Faust. "It is also of utmost importance and great interest to our students and faculty, many of whom are inventors and entrepreneurs. This lab will foster team-based activities and deepen interactions among both aspiring and experienced innovators across the schools of Harvard."
Harvard Business School, long a center for teaching and scholarship in the area of entrepreneurship, will fund and develop the lab, while opening its doors to the university. "We see it as a potentially quite distinctive resource - not one that would attempt to replicate other successful innovation spaces in Massachusetts, but one that would leverage Harvard's people and resources in new and exciting ways," said HBS Dean Nitin Nohria. "Our goal is to drive innovation by connecting entrepreneurial teams, not only across the Charles River, but nationally and internationally, in an interdisciplinary approach to creating viable business ventures and social initiatives."
Boston Mayor Thomas M. Menino, a champion for spurring innovation in the city to grow the economy and create jobs, joined Dean Nohria at the announcement. He noted that Boston is a city with deep roots in innovation and entrepreneurship. "Harvard is an important part of that history and their investment in this facility in Allston will ensure that they play an important role in the future of innovation in Boston."
Like the very enterprises it will house, the concept for the Harvard Innovation Lab had entrepreneurial origins. HBS Professor Peter Tufano, who drafted the initial proposal, saw the potential for the lab. "Student entrepreneurs don't respect academic silos, but nevertheless often found it hard to connect across school boundaries," he said. "If we could find ways to facilitate those interactions, bringing them together in an environment that stimulates the sharing of ingenuity, knowledge, and skills, innovation and creativity could flourish. The potential of a unified Harvard could partially be realized."
Harvard School of Engineering and Applied Sciences (SEAS) Dean Cherry Murray sees the lab as an ideal way to bridge the gaps across academic disciplines. "Innovation isn't bounded by organizational structures and areas of study," said Murray. "I'm thrilled to broaden the experience of SEAS students by bringing them together with their counterparts from other fields such as design, business, government, law, medicine, and science."
The Harvard Innovation Lab is planned to come on line beginning in the fall semester of 2011. It will be open to student entrepreneurs across the university, including undergrads, students in Harvard's professional schools, and graduate students. Student teams will have shared space to work on their ventures, access to experienced Entrepreneurs in Residence, support by faculty and administrators, and a program of related activities to deepen their understanding of entrepreneurship and innovation. Some student teams will work independently, while others will work as part of established courses. For example, teams of students in the jointly taught HBS and SEAS course Inventing Breakthroughs & Commercializing Science will use the lab to create plans for commercializing university/private lab research. The course builds interdisciplinary student teams from several Harvard schools as well as MIT and Tufts with backgrounds in business, medicine, law, government, engineering and science. Also in stage one, the 150 or so teams entering the HBS Business Plan Competition would be given work space in the Lab along with HBS Entrepreneurs in Residence, who have included the likes of Jeffrey Bussgang of Flybridge Capital Partners and Susan Decker, former president of Yahoo. The intent is to create a supportive and interactive environment where ideas and activities can be shared across disciplines and ranges of experience.
The innovation lab will be led by a team whose job is to connect the various Harvard entrepreneurship programs-such as HBS's Rock Center and The Technology and Entrepreneurship Center at Harvard (TECH), based at SEAS, and to link student teams with the right people and resources to overcome hurdles and foster their success.
Stage two of the launch will include a mix of innovation-oriented programs and services that benefit small businesses and entrepreneurs in the surrounding community. For example, the lab will engage groups affiliated with HBS to work with local entrepreneurs and business and may provide rent-free space to such organizations and to others who can work with Allston community business owners and entrepreneurs.
"For the University as well as for the economy and our nation, the importance of innovation cannot be overstated," said Harvard President Drew Gilpin Faust. "It is also of utmost importance and great interest to our students and faculty, many of whom are inventors and entrepreneurs. This lab will foster team-based activities and deepen interactions among both aspiring and experienced innovators across the schools of Harvard."
Harvard Business School, long a center for teaching and scholarship in the area of entrepreneurship, will fund and develop the lab, while opening its doors to the university. "We see it as a potentially quite distinctive resource - not one that would attempt to replicate other successful innovation spaces in Massachusetts, but one that would leverage Harvard's people and resources in new and exciting ways," said HBS Dean Nitin Nohria. "Our goal is to drive innovation by connecting entrepreneurial teams, not only across the Charles River, but nationally and internationally, in an interdisciplinary approach to creating viable business ventures and social initiatives."
Boston Mayor Thomas M. Menino, a champion for spurring innovation in the city to grow the economy and create jobs, joined Dean Nohria at the announcement. He noted that Boston is a city with deep roots in innovation and entrepreneurship. "Harvard is an important part of that history and their investment in this facility in Allston will ensure that they play an important role in the future of innovation in Boston."
Like the very enterprises it will house, the concept for the Harvard Innovation Lab had entrepreneurial origins. HBS Professor Peter Tufano, who drafted the initial proposal, saw the potential for the lab. "Student entrepreneurs don't respect academic silos, but nevertheless often found it hard to connect across school boundaries," he said. "If we could find ways to facilitate those interactions, bringing them together in an environment that stimulates the sharing of ingenuity, knowledge, and skills, innovation and creativity could flourish. The potential of a unified Harvard could partially be realized."
Harvard School of Engineering and Applied Sciences (SEAS) Dean Cherry Murray sees the lab as an ideal way to bridge the gaps across academic disciplines. "Innovation isn't bounded by organizational structures and areas of study," said Murray. "I'm thrilled to broaden the experience of SEAS students by bringing them together with their counterparts from other fields such as design, business, government, law, medicine, and science."
The Harvard Innovation Lab is planned to come on line beginning in the fall semester of 2011. It will be open to student entrepreneurs across the university, including undergrads, students in Harvard's professional schools, and graduate students. Student teams will have shared space to work on their ventures, access to experienced Entrepreneurs in Residence, support by faculty and administrators, and a program of related activities to deepen their understanding of entrepreneurship and innovation. Some student teams will work independently, while others will work as part of established courses. For example, teams of students in the jointly taught HBS and SEAS course Inventing Breakthroughs & Commercializing Science will use the lab to create plans for commercializing university/private lab research. The course builds interdisciplinary student teams from several Harvard schools as well as MIT and Tufts with backgrounds in business, medicine, law, government, engineering and science. Also in stage one, the 150 or so teams entering the HBS Business Plan Competition would be given work space in the Lab along with HBS Entrepreneurs in Residence, who have included the likes of Jeffrey Bussgang of Flybridge Capital Partners and Susan Decker, former president of Yahoo. The intent is to create a supportive and interactive environment where ideas and activities can be shared across disciplines and ranges of experience.
The innovation lab will be led by a team whose job is to connect the various Harvard entrepreneurship programs-such as HBS's Rock Center and The Technology and Entrepreneurship Center at Harvard (TECH), based at SEAS, and to link student teams with the right people and resources to overcome hurdles and foster their success.
Stage two of the launch will include a mix of innovation-oriented programs and services that benefit small businesses and entrepreneurs in the surrounding community. For example, the lab will engage groups affiliated with HBS to work with local entrepreneurs and business and may provide rent-free space to such organizations and to others who can work with Allston community business owners and entrepreneurs.
Thursday, October 14, 2010
Harris & Harris Group Announces First Venture Debt Investment
Harris & Harris Group, Inc. (HHG) has made its first venture debt investment of $500,000 in GEO Semiconductor, Inc. The round of venture debt financing was led by Montage Capital, LLC. HHG received warrants as part of this venture debt financing. This investment is part of Harris & Harris Group's efforts to expand its core venture capital investments in equity of privately held and publicly traded small companies with debt securities that provide predictable cash flows and timelines for returns on investment. In addition to providing venture debt financing, Harris & Harris Group continues to make equity-based venture capital investments in companies developing and integrating products enabled by nanotechnology and microsystems.
GEO Semiconductor develops high-performance, programmable video and geometry pixel processor solutions that enable correction of color and brightness uniformity issues in light-emitting diode and laser backlit displays and in correcting optical anomalies and non-uniformity issues in smartphone cameras. GEO Semiconductor plans to use the proceeds to support current design wins for its chips and ongoing business development activities. A press release issued by GEO Semiconductor regarding this financing can be accessed at http://www.businesswire.com/news/home/20100928006556/en/GEO-Semiconductor-Closes-2-Million-Venture-Debt.
Harris & Harris Group is a publicly traded venture capital company that invests in nanotechnology and microsystems.
GEO Semiconductor develops high-performance, programmable video and geometry pixel processor solutions that enable correction of color and brightness uniformity issues in light-emitting diode and laser backlit displays and in correcting optical anomalies and non-uniformity issues in smartphone cameras. GEO Semiconductor plans to use the proceeds to support current design wins for its chips and ongoing business development activities. A press release issued by GEO Semiconductor regarding this financing can be accessed at http://www.businesswire.com/news/home/20100928006556/en/GEO-Semiconductor-Closes-2-Million-Venture-Debt.
Harris & Harris Group is a publicly traded venture capital company that invests in nanotechnology and microsystems.
VENTURE CAPITAL FUNDRAISING ACTIVITY REMAINS LACKLUSTER IN Q3 2010
Fewer Firms Raising Smaller Funds Remains the Trend
New York, October 11, 2010 - Forty-five US venture capital funds raised nearly $3
billion in the third quarter of 2010, according to Thomson Reuters and the National
Venture Capital Association (NVCA). This level marks a 40% increase, by dollar
commitments, compared to the second quarter of 2010, which saw 51 funds raise $2.1
billion during the period. Most of this increase was attributable to a single $750
million fund closing in the quarter.
Fundraising by Venture Funds
Year/Quarter Number Venture
of Funds Capital
($M)
2005 245 29,786.5
2006 243 32,125.7
2007 252 35,426.7
2008 229 28,500.0
2009 151 16,455.2
2010 124 9,103.2
3Q'08 62 8,449.9
4Q'08 55 3,620.4
1Q'09 59 5,373.9
2Q'09 40 4,718.0
3Q'09 32 2,310.3
4Q'09 46 4,053.1
1Q'10 43 3,968.8
2Q'10 51 2,142.8
3Q'10 45 2,991.6
Source: Thomson Reuters and National Venture Capital Association
"With funds sizes getting smaller and fewer firms raising money, we are experiencing a
period of time in which venture capital investment is consistently outpacing
fundraising, creating an industry that will be considerably smaller in the next decade"
said Mark Heesen, president of the NVCA. "While the inclination is to assume that a
contracting industry is problematic, most venture capitalists and their limited partners
believe that this environment will drive future returns upward without harming
innovation and job creation."
There were 31 follow-on funds and 14 new funds raised in the third quarter of 2010, a
ratio of 2.2-to-1 of follow-on to new funds. The largest new fund reporting commitments
during the third quarter of 2010 was New York-based Raine Partners I, L.P., which raised
$303.4 million in its inaugural fund. A "new" fund is defined as the first fund at a
newly established firm, although the general partner of that firm may have previous
experience investing in venture capital.
VC Funds: New vs. Follow-On
No. of No. of Total
New Follow-
on
2005 54 191 245
2006 67 176 243
2007 77 175 252
2008 63 166 229
2009 42 109 151
2010 35 89 124
3Q'08 16 46 62
4Q'08 17 38 55
1Q'09 10 49 59
2Q'09 14 26 40
3Q'09 12 20 32
4Q'09 14 32 46
1Q'10 13 30 43
2Q'10 13 38 51
3Q'10 14 31 45
Source: Thomson Reuters and National Venture Capital Association
The largest funds raised during the third quarter of 2010 was Menlo Park,
California-based Institutional Venture Partners XIII, L.P. which raised $750 million
followed Boston, Massachusetts-based Third Rock Ventures II, L.P., which raised $426
million.
Methodology
The Thomson Reuters/National Venture Capital Association sample includes U.S.-based
venture capital funds. Classifications are based on the headquarter location of the
fund, not the location of venture capital firm. The sample excludes fund of funds.
About Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for businesses
and professionals. We combine industry expertise with innovative technology to deliver
critical information to leading decision makers in the financial, legal, tax and
accounting, healthcare and science and media markets, powered by the world's most
trusted news organization. With headquarters in New York and major operations in London
and Eagan, Minnesota, Thomson Reuters employs 55,000 people and operates in over 100
countries. For more information, go to www.thomsonreuters.com
http://thomsonreuters.com/ .
About National Venture Capital Association
The National Venture Capital Association (NVCA) represents more than 400 venture capital
firms in the United States. NVCA's mission is to foster greater understanding of the
importance of venture capital to the U.S. economy and support entrepreneurial activity
and innovation. According to a 2008 Global Insight study, venture-backed companies
accounted for 12.1 million jobs and $2.9 trillion in revenue in the United States in
2008. The NVCA represents the public policy interests of the venture capital community,
strives to maintain high professional standards, provides reliable industry data,
sponsors professional development, and facilitates interaction among its members. For
more information about the NVCA, please visit www.nvca.org http://www.nvca.org/ .
New York, October 11, 2010 - Forty-five US venture capital funds raised nearly $3
billion in the third quarter of 2010, according to Thomson Reuters and the National
Venture Capital Association (NVCA). This level marks a 40% increase, by dollar
commitments, compared to the second quarter of 2010, which saw 51 funds raise $2.1
billion during the period. Most of this increase was attributable to a single $750
million fund closing in the quarter.
Fundraising by Venture Funds
Year/Quarter Number Venture
of Funds Capital
($M)
2005 245 29,786.5
2006 243 32,125.7
2007 252 35,426.7
2008 229 28,500.0
2009 151 16,455.2
2010 124 9,103.2
3Q'08 62 8,449.9
4Q'08 55 3,620.4
1Q'09 59 5,373.9
2Q'09 40 4,718.0
3Q'09 32 2,310.3
4Q'09 46 4,053.1
1Q'10 43 3,968.8
2Q'10 51 2,142.8
3Q'10 45 2,991.6
Source: Thomson Reuters and National Venture Capital Association
"With funds sizes getting smaller and fewer firms raising money, we are experiencing a
period of time in which venture capital investment is consistently outpacing
fundraising, creating an industry that will be considerably smaller in the next decade"
said Mark Heesen, president of the NVCA. "While the inclination is to assume that a
contracting industry is problematic, most venture capitalists and their limited partners
believe that this environment will drive future returns upward without harming
innovation and job creation."
There were 31 follow-on funds and 14 new funds raised in the third quarter of 2010, a
ratio of 2.2-to-1 of follow-on to new funds. The largest new fund reporting commitments
during the third quarter of 2010 was New York-based Raine Partners I, L.P., which raised
$303.4 million in its inaugural fund. A "new" fund is defined as the first fund at a
newly established firm, although the general partner of that firm may have previous
experience investing in venture capital.
VC Funds: New vs. Follow-On
No. of No. of Total
New Follow-
on
2005 54 191 245
2006 67 176 243
2007 77 175 252
2008 63 166 229
2009 42 109 151
2010 35 89 124
3Q'08 16 46 62
4Q'08 17 38 55
1Q'09 10 49 59
2Q'09 14 26 40
3Q'09 12 20 32
4Q'09 14 32 46
1Q'10 13 30 43
2Q'10 13 38 51
3Q'10 14 31 45
Source: Thomson Reuters and National Venture Capital Association
The largest funds raised during the third quarter of 2010 was Menlo Park,
California-based Institutional Venture Partners XIII, L.P. which raised $750 million
followed Boston, Massachusetts-based Third Rock Ventures II, L.P., which raised $426
million.
Methodology
The Thomson Reuters/National Venture Capital Association sample includes U.S.-based
venture capital funds. Classifications are based on the headquarter location of the
fund, not the location of venture capital firm. The sample excludes fund of funds.
About Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for businesses
and professionals. We combine industry expertise with innovative technology to deliver
critical information to leading decision makers in the financial, legal, tax and
accounting, healthcare and science and media markets, powered by the world's most
trusted news organization. With headquarters in New York and major operations in London
and Eagan, Minnesota, Thomson Reuters employs 55,000 people and operates in over 100
countries. For more information, go to www.thomsonreuters.com
http://thomsonreuters.com/ .
About National Venture Capital Association
The National Venture Capital Association (NVCA) represents more than 400 venture capital
firms in the United States. NVCA's mission is to foster greater understanding of the
importance of venture capital to the U.S. economy and support entrepreneurial activity
and innovation. According to a 2008 Global Insight study, venture-backed companies
accounted for 12.1 million jobs and $2.9 trillion in revenue in the United States in
2008. The NVCA represents the public policy interests of the venture capital community,
strives to maintain high professional standards, provides reliable industry data,
sponsors professional development, and facilitates interaction among its members. For
more information about the NVCA, please visit www.nvca.org http://www.nvca.org/ .
World Heart Corp. to Raise $25.3 Million in Private Placement
SALT LAKE CITY, Oct 14, 2010 - World Heart Corporation (WorldHeart) (WHRT 2.05, 0.00, 0.00%) , a developer of mechanical circulatory systems, announced today that it has obtained commitments from certain new and existing institutional investors, including Venrock Associates, New Leaf Venture Partners and the Special Situations Funds, to purchase approximately $25.3 million of its common stock in a private placement. WorldHeart has entered into a securities purchase agreement with the investors pursuant to which WorldHeart will sell an aggregate of 11,850,118 shares of its common stock and warrants to purchase up to 11,850,118 additional shares of common stock. Each unit, consisting of one share of common stock and one warrant, to purchase one share of common stock, will be sold for a purchase price of $2.135. The private placement is subject to customary closing conditions and is expected to close during the week of October 18, 2010. Lazard Capital Markets LLC and Wedbush PacGrow Life Sciences acted as the placement agents for the offering.
BERINGEA INVESTS IN CLEANTECH COMPANY RECELLULAR
FARMINGTON HILLS, Mich. (October 11, 2010) --Beringea, Michigan’s largest venture capital firm, has invested in ReCellular, a Dexter, Mich.-based e-waste company specializing in the collection, reuse and recycling of used personal electronics, particularly mobile phones. The investment, made through Beringea’s InvestMichigan! Growth Capital Fund, will help fund ReCellular’s rapid growth and expansion into the global marketplace. Terms of the deal were not disclosed. This marks the 17th investment in the InvestMichigan! Growth Capital portfolio.
"We are excited to partner with Beringea in building upon our nearly 20-year heritage in Michigan," said Steve Manning, CEO for ReCellular. "This investment will allow us to increase both the volume of phones we keep out of landfills and our contribution to Michigan's recovery."
ReCellular, which employs 280 in Michigan, collects more than 400,000 mobile phones a month. Approximately 70 percent of those phones are refurbished and resold both domestically and worldwide; the rest are recycled for the precious metals, electronics and plastics that make up a phone. Phones are collected through partnerships with major mobile carriers, charities and large corporations and through direct purchases from consumers, and then sent to the company’s Dexter, Mich. facility for data removal and refurbishment or recycling. In 2009, the company collected and processed five million phones for reuse and recycling, keeping more than 1.6 million pounds of solid and potentially harmful waste out of landfills.
“The proliferation of electronic devices over the past decade (cell phones, cameras, mp3 players, etc.) has created a massive and urgent environmental challenge, yet presents an attractive opportunity to companies that provide effective and reliable solutions,” said Jeff Bocan, managing director for Beringea. “ReCellular has established itself as the cell phone recycling market leader and we are very excited to partner with its world-class team to help take the business to greater heights.”
About Beringea
Beringea is the largest venture capital firm in Michigan, with more than 70 portfolio companies in the United States and United Kingdom. Headquartered in Farmington Hills, Mich., the firm has additional offices in London and Shanghai and has more than 20 years of investing experience in a range of sectors, including health care and life sciences, clean technology, advanced manufacturing, media, Internet technologies and specialized consumer products. Among its many initiatives, Beringea is co-manager of the $185 million InvestMichigan! Growth Capital Fund, which provides venture and expansion-stage capital to emerging businesses headquartered or with substantial operations in the state of Michigan. For more information, visit www.beringea.com or www.investmichiganfund.com.
About ReCellular Inc.
With offices in the United States and Hong Kong, ReCellular Inc. is the world's leading electronics sustainability firm. We provide solutions for the collection, reuse and recycling of used personal electronics that generate financial return for our partners, quality products for our customers, funding for charity organizations, and protection of the environment. Corporate, charitable, consumer and wholesale information is available at www.ReCellular.com.
"We are excited to partner with Beringea in building upon our nearly 20-year heritage in Michigan," said Steve Manning, CEO for ReCellular. "This investment will allow us to increase both the volume of phones we keep out of landfills and our contribution to Michigan's recovery."
ReCellular, which employs 280 in Michigan, collects more than 400,000 mobile phones a month. Approximately 70 percent of those phones are refurbished and resold both domestically and worldwide; the rest are recycled for the precious metals, electronics and plastics that make up a phone. Phones are collected through partnerships with major mobile carriers, charities and large corporations and through direct purchases from consumers, and then sent to the company’s Dexter, Mich. facility for data removal and refurbishment or recycling. In 2009, the company collected and processed five million phones for reuse and recycling, keeping more than 1.6 million pounds of solid and potentially harmful waste out of landfills.
“The proliferation of electronic devices over the past decade (cell phones, cameras, mp3 players, etc.) has created a massive and urgent environmental challenge, yet presents an attractive opportunity to companies that provide effective and reliable solutions,” said Jeff Bocan, managing director for Beringea. “ReCellular has established itself as the cell phone recycling market leader and we are very excited to partner with its world-class team to help take the business to greater heights.”
About Beringea
Beringea is the largest venture capital firm in Michigan, with more than 70 portfolio companies in the United States and United Kingdom. Headquartered in Farmington Hills, Mich., the firm has additional offices in London and Shanghai and has more than 20 years of investing experience in a range of sectors, including health care and life sciences, clean technology, advanced manufacturing, media, Internet technologies and specialized consumer products. Among its many initiatives, Beringea is co-manager of the $185 million InvestMichigan! Growth Capital Fund, which provides venture and expansion-stage capital to emerging businesses headquartered or with substantial operations in the state of Michigan. For more information, visit www.beringea.com or www.investmichiganfund.com.
About ReCellular Inc.
With offices in the United States and Hong Kong, ReCellular Inc. is the world's leading electronics sustainability firm. We provide solutions for the collection, reuse and recycling of used personal electronics that generate financial return for our partners, quality products for our customers, funding for charity organizations, and protection of the environment. Corporate, charitable, consumer and wholesale information is available at www.ReCellular.com.
Canada's Top 10(TM) Annual VC Competition Winners Announced
Kane Biotech, iCo Therapeutics Inc. Selected as Among Canada's Top 10(TM) Life Sciences Companies
Kane Biotech Inc., a biotechnology company engaged in the development and commercialization of products that prevent and remove microbial biofilms, and iCo Therapeutics Inc. ia Vancouver-based reprofiling company focused on redosing or reformulating drugs with clinical history for new or expanded indications have been selected as one of the 2010 winners of the annual Canada's Top 10(TM) Competition. The award was announced on October 13th in Montreal. Top 10(TM) winners are chosen by an independent expert panel of Canadian and U.S. venture capitalists. The panel can be viewed at http://www.topcanadiancompanies.ca/jury/lifesciences.html.
"Kane is honored to have been selected to receive this award," stated Kane Biotech President & CEO, Gord Froehlich. "Independent validation from a jury of experienced venture capitalists that posses a strong track record of success in the life sciences industry is highly valuable. We are proud to be included among such a respected, high-profile group of companies."
Competition winners participate in a series of investment forums in select cities across the U.S. Developed together with key sponsors, partners and the Canadian consulates in each city, the forums expose the Top 10(TM) companies to an exclusive group of top tier United States and Canadian investors, venture capitalists, licensing executives and potential strategic partners in a series of invitation only events.
Current winners and alumni have secured over $600 million in disclosed venture capital financing since being selected for this award.
"I continue to be impressed by the quality of companies that I see coming out of Canada," says Bernhardt Zeisig, Partner, Cycle Ventures LLC. "Because of programs like this, I get to review companies that I would normally not see. This competition is an effective way to put companies in front of investors like us."
About the Canada's Top 10(TM) Competition
The vision for the Canada's Top 10(TM) is to be Canada's premier investment oriented competition by selecting the best potential investments in Canada for investors and providing high value added services to companies to increase their chances of success, both as they source investment and as they grow and compete in the global environment. Since its inception, competition alumni have secured more than $600M in venture capital financing.
Competition winners may participate in a series of investment forums in select cities across the U.S. Developed together with key sponsors, partners and the Canadian consulates in each city, the forums expose the Top 10(TM) companies to an exclusive opportunity to present to top tier U.S. and Canadian venture capitalists, licensing executives and potential strategic partners in a series of invitation only events.
About Kane Biotech Inc.
Kane Biotech is a biotechnology company engaged in the development and commercialization of products to prevent and remove biofilms. Biofilms are a major cause of a number of serious medical problems including chronic infections and medical device related infections. They develop on surfaces such as catheters, prosthetic implants, teeth, lungs and the urogenital tract. Biofilms are pervasive, costly to deal with and are involved in approximately 80% of all human bacterial infections. The healing of chronic wounds alone costs the United States health care system $20 Billion per year.
Kane Biotech uses patent protected technologies based on molecular mechanisms of biofilm formation/dispersal and methods for finding compounds that inhibit or disrupt biofilms. The Company has evidence that these technologies have potential to significantly improve the ability to prevent and/or destroy biofilms in several medical and industrial applications.
About iCo Therapeutics
iCo Therapeutics Inc. is a Vancouver-based reprofiling company focused on redosing or reformulating drugs with clinical history for new or expanded indications. iCo has exclusive worldwide rights to three products: iCo-007, moving into Phase II for the treatment of DME, iCo-008; a product with Phase II clinical history to be developed for severe ocular allergies and age-related macular degeneration; and iCo-009, an oral formulation of Amphotericin B for sight and life-threatening diseases. iCo-009 also represents a new drug delivery technology with the potential to reprofile other parenteral administered drugs to the oral route of administration. iCo was recently awarded a Gold Leaf Award as the Early Stage Company of the Year from BIOTECanada and trades on the TSX Venture Exchange under the symbol "ICO". For more information, visit the Company website at: www.icotherapeutics.com
Kane Biotech Inc., a biotechnology company engaged in the development and commercialization of products that prevent and remove microbial biofilms, and iCo Therapeutics Inc. ia Vancouver-based reprofiling company focused on redosing or reformulating drugs with clinical history for new or expanded indications have been selected as one of the 2010 winners of the annual Canada's Top 10(TM) Competition. The award was announced on October 13th in Montreal. Top 10(TM) winners are chosen by an independent expert panel of Canadian and U.S. venture capitalists. The panel can be viewed at http://www.topcanadiancompanies.ca/jury/lifesciences.html.
"Kane is honored to have been selected to receive this award," stated Kane Biotech President & CEO, Gord Froehlich. "Independent validation from a jury of experienced venture capitalists that posses a strong track record of success in the life sciences industry is highly valuable. We are proud to be included among such a respected, high-profile group of companies."
Competition winners participate in a series of investment forums in select cities across the U.S. Developed together with key sponsors, partners and the Canadian consulates in each city, the forums expose the Top 10(TM) companies to an exclusive group of top tier United States and Canadian investors, venture capitalists, licensing executives and potential strategic partners in a series of invitation only events.
Current winners and alumni have secured over $600 million in disclosed venture capital financing since being selected for this award.
"I continue to be impressed by the quality of companies that I see coming out of Canada," says Bernhardt Zeisig, Partner, Cycle Ventures LLC. "Because of programs like this, I get to review companies that I would normally not see. This competition is an effective way to put companies in front of investors like us."
About the Canada's Top 10(TM) Competition
The vision for the Canada's Top 10(TM) is to be Canada's premier investment oriented competition by selecting the best potential investments in Canada for investors and providing high value added services to companies to increase their chances of success, both as they source investment and as they grow and compete in the global environment. Since its inception, competition alumni have secured more than $600M in venture capital financing.
Competition winners may participate in a series of investment forums in select cities across the U.S. Developed together with key sponsors, partners and the Canadian consulates in each city, the forums expose the Top 10(TM) companies to an exclusive opportunity to present to top tier U.S. and Canadian venture capitalists, licensing executives and potential strategic partners in a series of invitation only events.
About Kane Biotech Inc.
Kane Biotech is a biotechnology company engaged in the development and commercialization of products to prevent and remove biofilms. Biofilms are a major cause of a number of serious medical problems including chronic infections and medical device related infections. They develop on surfaces such as catheters, prosthetic implants, teeth, lungs and the urogenital tract. Biofilms are pervasive, costly to deal with and are involved in approximately 80% of all human bacterial infections. The healing of chronic wounds alone costs the United States health care system $20 Billion per year.
Kane Biotech uses patent protected technologies based on molecular mechanisms of biofilm formation/dispersal and methods for finding compounds that inhibit or disrupt biofilms. The Company has evidence that these technologies have potential to significantly improve the ability to prevent and/or destroy biofilms in several medical and industrial applications.
About iCo Therapeutics
iCo Therapeutics Inc. is a Vancouver-based reprofiling company focused on redosing or reformulating drugs with clinical history for new or expanded indications. iCo has exclusive worldwide rights to three products: iCo-007, moving into Phase II for the treatment of DME, iCo-008; a product with Phase II clinical history to be developed for severe ocular allergies and age-related macular degeneration; and iCo-009, an oral formulation of Amphotericin B for sight and life-threatening diseases. iCo-009 also represents a new drug delivery technology with the potential to reprofile other parenteral administered drugs to the oral route of administration. iCo was recently awarded a Gold Leaf Award as the Early Stage Company of the Year from BIOTECanada and trades on the TSX Venture Exchange under the symbol "ICO". For more information, visit the Company website at: www.icotherapeutics.com
The growth of venture capital in Latin America
In October's edition, Latino Business Review presents an interesting article about the growth of venture capital in Latin America as a model for emerging business financing. In this article, Norma Hernandez, EGADE professor, gives her opinion about this phenomenon in the region and projects a slow but steady growth of this practice.
Latino Business Review presents the results of a recent survey conducted by The Latin American Venture Capital Association - LAVCA. Despite the decline in fundraising activities and offers in the region, VC has become an increased activity in Latin America.
Also, Mercedes Konin, Director for Mapeo Promoters of CSR, talks about corporate social responsibility in Latin America. She explains about ISO 26000 and the efforts of ECLAC to establish the standards for social responsibility as another quality in their management scheme.
The issue also shows how companies are using social media portals to provide better customer service and the implications that it may have on their corporate image. Additionally, find out about recent cutting edge smart phones released in Latin American.
About Latino Business Review
Latino Business Review is a leading digital media source of news and content for C-level executives focused on business and industry-specific news throughout Latin America. Through its digital magazine, online website, daily news and weekly e-newsletter, Latino Business Review helps executives stay up-to-date with the most fundamental operational issues in demanding and ever more competitive global business sectors. For more information, contact 1-760-827-7800 or visit http://www.latinobusinessreview.com/.
Latino Business Review presents the results of a recent survey conducted by The Latin American Venture Capital Association - LAVCA. Despite the decline in fundraising activities and offers in the region, VC has become an increased activity in Latin America.
Also, Mercedes Konin, Director for Mapeo Promoters of CSR, talks about corporate social responsibility in Latin America. She explains about ISO 26000 and the efforts of ECLAC to establish the standards for social responsibility as another quality in their management scheme.
The issue also shows how companies are using social media portals to provide better customer service and the implications that it may have on their corporate image. Additionally, find out about recent cutting edge smart phones released in Latin American.
About Latino Business Review
Latino Business Review is a leading digital media source of news and content for C-level executives focused on business and industry-specific news throughout Latin America. Through its digital magazine, online website, daily news and weekly e-newsletter, Latino Business Review helps executives stay up-to-date with the most fundamental operational issues in demanding and ever more competitive global business sectors. For more information, contact 1-760-827-7800 or visit http://www.latinobusinessreview.com/.
BASF Venture Capital invests in American company Aspen Aerogels
* Aerogel-based nanoporous insulation materials
* Promising new technology for energy-efficient construction
Ludwigshafen, Germany – BASF Venture Capital GmbH, Ludwigshafen, has led a $21.5 million (about €15.7 million) round of investment in Aspen Aerogels Inc., Northborough, Massachusetts. Aspen supplies reinforced, nanoporous aerogel insulation products that are up to five times more effective than other insulation materials. The company’s solutions enable customers to conserve energy in a variety of industries including building and construction, chemicals, transportation and oil and gas .
The current round of financing also included RockPort Capital, Tenaya Capital, Reservoir Capital Group, Arcapita Ventures and Argonaut Private Equity, among others.
Aerogels are silica foams with nanoporous cavities that comprise 97% of their volume; thus earning them the name “solid air.” Aerogels have been known as extremely fragile and brittle materials. Aspen has succeeded in producing aerogels in the form of thin, flexible mats at acceptable cost. These blankets are more robust than the existing monoliths and spheres, and just as easy to process as any other flexible insulation material.
“High-performance insulation materials are the key technology for energy-efficient retrofitting of buildings,” said Bruce Christensen, Vice President Global Technology and Innovation Management at BASF Construction Chemicals. “These new materials are space-saving and give home owners more options in designing their house to suit their own tastes. Aspen technology can contribute in a major way to energy-efficient homes that also look good.”
“Aspen has done an excellent job in advancing aerogel technology for industrial applications,” said Dr. Oliver Guthmann, Investment Manager at BASF Venture Capital. “We see an additional very large market potential and further opportunities for profitable growth in the construction industry.” Aspen Aerogels products are already in use at BASF, for example at the Antwerp site.
“We are pleased to have developed a strong technical, commercial, and financial partnership with BASF,” said Don Young, CEO of Aspen Aerogels. “The global building and construction market offers a significant opportunity for aerogel technology and BASF and Aspen will join forces to target and rapidly penetrate the European market. ”
About Aspen Aerogels, Inc.
Aspen Aerogels, Inc. is a rapidly growing company founded in 2001 to capitalize on proprietary and patented advances in aerogel technology. Aspen has developed a proprietary, easy-to-use blanket form of aerogels with broad application to a variety of markets including Oil & Gas, Building & Construction, Outdoor Gear & Apparel, Solar Thermal, Appliances, and Transportation. The company is headquartered in Northborough, Massachusetts and has 120 employees.
About BASF Venture Capital GmbH
BASF Venture Capital GmbH was established in 2001 as a wholly owned subsidiary of BASF Future Business GmbH, Ludwigshafen, Germany, with the aim of exploring new growth potentials based on investment in startup companies and funds. BASF Venture Capital GmbH’s financial commitment per company is in the range of one to five million euros, with active support provided for young start-ups. BASF Venture Capital GmbH selects businesses for investment whose success factors include innovative chemistry-based solutions and which are of strategic interest for BASF. More information about BASF Venture Capital GmbH is available at www.basf-vc.com.
About BASF
BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics and performance products to agricultural products, fine chemicals as well as oil and gas. As a reliable partner BASF creates chemistry to help its customers in virtually all industries to be more successful. With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility. BASF posted sales of more than €50 billion in 2009 and had approximately 105,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com.
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