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From:
"Dan Primack"
Name:
Dan Primack
Email Address:
Dan_Primack@fortune.chtah.com
Subject:
Date:
06-10-2010 14:22:17
Message
Fortune Finance Street Sweep Term Sheet Economics Tech Wall Street Washington
Random Ramblings
Foundry Group, a Colorado-based VC firm known for investments in companies like Zynga and StockTwits,
yesterday announced that it has closed its second fund with $225 million in capital commitments (we had it
first at Fortune.com). It's also changing up what I once called "the best VC firm website ever."
First, the money: Foundry was launched in late 2006, out of the ashes of Mobius Venture Capital. It went
out seeking to raise $175 million for its debut fund, with a focus on early-stage IT, software and Internet
companies. Despite its first-time fund status, the team's track record -- including that of the ubiquitous Brad
Feld -- helped it secure $225 million from groups like Guardian Life, Parish Capital, Morgan Stanley and
UTIMCO.
And it seems to have been a smart investment. According to the latest performance data from UTIMCO
(through 5/31/10), Foundry's debut vehicle has the single best IRR of any other fund in the endowment's
entire private equity portfolio, at a whopping 63.67%. I'd assume that a lot of that figure is driven by Zynga,
but not all of it.
Foundry opted to target $225 million for the first fund, and held fast despite significant oversubscription. No
significant changes in investment strategy, and the team also remains intact (save for original partner Chris
Wand, who left more than a year ago).
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Now onto the website: After Wand left, Foundry opted to redesign its website with a Reservoir Dogs motif.
And, unlike a similar photo attempt by Blackstone Group execs, Foundry pulled it off.
To commemorate their new fund, however, Foundry has dropped the Dogs in favor of the Mad Men. It
looks right, and I know the show has its legions of fans (you should see Fortune.com's pageviews for Mad
Men-related posts). Unfortunately, I'm not one of them. So I'll keep the old site in my heart, while I await
what Foundry comes up with for Fund III (perhaps we should compile suggestions).
You can see the Reservoir Dogs and Mad Men photos by going here.
*** Henry Kravis yesterday said that he will donate $100 million to the Columbia Business School, to help
build around 450,000 square feet of new facilities on an old Manhattanville manufacturing zone. I've got
more info here, including video of Kravis explaining his donation.
*** Microsoft M&A: Yesterday I mentioned that Microsoft was nearing completion of a new acquisition, but
that it wouldn't make an announcement via press release. I've since learned that the deal is for AVIcode, a
Baltimore-based provider of application performance monitoring solutions. No financial terms will be
disclosed, although the price-tag is below $50 million.
*** I had dinner last night with a Silicon Valley "super-angel," and asked him the same question I ask
most of my biz dining companions: "If you were me, what would you be writing about?"
His reply was to investigate whether any other industry verticals can replicate what's been done with Web
2.0, in terms of scaling companies with very lean resources. Seems difficult - considering that Web 2.0
requires no "materials" beyond coders and visionaries - but it's one worth pondering.
*** If I were a Patriots season ticket holder, I'd sue for fraud. Unless there was some small print saying:
"Dear fan: We're not actually trying to win this year."
*** Housekeeping: As you've probably noticed, we tweaked the design a bit for this morning's issue. I'm
hopeful that it is now easier to read for those of you who were having troubles. Please let me know
*** Oops: Seems I'm speaking at the Village Ventures meeting at Boston's Liberty Hotel this afternoon (not
tomorrow). Actually, it's more of an interview, with Village's Matt Harris asking me questions. Should be fun.
Hope to see a bunch of you there
Pre-Marketing, including the year's best Wall Street quotes, stupid VC questions, Silicon Valley at
an entertainment/science crossroad, Lehman keeps hiring and the evolution of American couch
potatoes.
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billion. Riverstone Holdings bought Dresser in 2007 for $2.4 billion from First Reserve and Odyssey
Investment Partners, although First Reserve bought back a minority stake.
VC Deals
AppNexus Inc., a New York-based maker of a virtualized cloud computing platform for online advertising
applications, has raised $50 million in Series C funding. Microsoft was joined by return backers Venrock,
Kodiak Venture Partners and First Round Capital. www.appnexus.com
Pathwork Diagnostics Inc., a Redwood City, Calif.-based molecular dianostics company focused on
oncology, has raised $30 million in Series C funding. Alta Partners led the round, and was joined by return
backers Abingworth, Advent Venture Partners, Novus Ventures, Prospect Venture Partners and Venrock.
The company previously raised around $70 million. www.pathworkdx.com
Eventbrite, a San Francisco-based online event ticketing company, has raised $20 million in Series D
funding. DAG Ventures led the round, and was joined by Tenaya Capital and return backer Sequoia
Capital. The company previously raised $9.5 million. www.eventbrite.com
SocialShield, a San Bruno, Calif.-based provider of a cloud-based service that lets parents monitor their
children's social network use, has raised $10 million in Series A funding. Venrock led the round, and was
joined by individual angels. www.socialshield.com
Passenger, a Los Angeles-based developer of social networks for existing brands, has raised $7.5 million
in new VC funding. Return backers include Shelter Capital Partners, StarVest Partners and Steamboat
Ventures. In related news, Shelter Capital's Bahram Nour-Omid is joining Passenger as CEO.
No World Borders Inc., a Newport Beach, Calif.-based healthcare management and IT consulting
company, has raised an undisclosed amount of equity funding led by Palos Verdes Venture Partners.
www.noworldborders.com
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KKR has acquired a 9% stake in India's Avantha Power & Infrastructure Ltd., ahead of the company's
IPO. The deal reportedly is worth around $49 million. www.kkr.com
VTB, a state-controlled bank in Russia, is in talks to sell a 10% equity stake to a consortium that includes
TPG Capital. According to The Financial Times, the deal could be worth upwards of $3 billion.
Welsh, Carson, Anderson & Stowe has acquired a majority stake in Peak 10 Inc., a Charlotte, N.C.based managed services company. No overall pricing terms were disclosed, but the transaction did include
a new $155 million credit facility co-lead arranged by RBC Capital Markets and General Electric Capital.
www.peak10.com
Wilmington Trust Corp. (NYSE: WL) is looking to raise capital from private equity firms, according to
Bloomberg. If unsuccessful, the Delaware bank may consider selling itself. Lazard and JP Morgan Chase
are serving as advisors.
TA Associates has agreed to invest an undisclosed amount in Amann Girrbach AG, a German maker of
equipment and consumables for dental reconstruction. Sellers include Alpine Equity. www.ta.com
PE-backed IPOs
Nordic Capital may relaunch its IPO plans for Danish ambulance service company Falck, following the
successful offering for Danish jeweler Pandora (owned by Axcel), according to Reuters.
Exits
Actis has hired Enam Securities to manage a sale of the firm's 66% stake in Indian lamp maker Halonix
Ltd. (BO: HALO), according to Reuters. The position is valued at around $56 million. www.act.is
Meda AB has acquired Alaven Pharmaceutical LLC, a Marietta, Ga.-based specialty drug company
focused on women's health, gastroenterology and anemia, from DFW Capital Partners and Greyrock
Capital Group. The deal values Alaven at $350 million. www.alavenpharm.com
Other Deals
Robins & Myers Inc. (NYSE: RBN) has agreed to acquire listed oilfield product maker T-3 Energy
Services for $422 million in cash and stock.
Crucell, a Dutch biotech company, said it would recommend a $2.4 billion acquisition offer from Johnson
& Johnson.
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