Solar startups turn to big companies for capital. PeHUB. Accel Partners Adds Paul Wahl as CEO-in-Residence. Venture firm Accel Partners has named ex-SAP and Siebel executive Paul Wahl CEO-in-residence, Reuters reported. Wahl will identify, invest in and mentor start-ups working on ways to reduce the complexity of enterprise IT infrastructure, Reuters said. Previously, Wahl was chief operating officer of Siebel, which was later bought by Oracle. Wahl ran the American business of German software company SAP in the 1990s. (Reuters) – Technology venture capital firm Accel Partners, whose investments include Facebook and Macromedia, has hired ex-SAP and Siebel executive Paul Wahl to strengthen its enterprise IT business.
As CEO-in-residence, Wahl will identify, invest in and mentor start-ups that help organisations to reduce the complexity of their IT infrastructure, Accel said on Monday. “We can’t keep building software that can only be maintained by armies of IT specialists. (Reporting by Georgina Prodhan; Editing by Jon Loades-Carter) Andreessen Horowitz Creates $200M Co-Investment Fund, Capital Under Management Now $1.2B. Venture capital firm Andreessen Horowitz today announced that it has created a $200 million that will co-invest alongside its second fund. The Menlo Park, Calif. -based firm now has $1.2 billion under management. The new capital will be invested in at growth-stage investments. The firm has made a number of growth-stage investments in hot Internet companies, such as Facebook, Groupon, Twitter and Zynga.
AH General Partner John O’Farrell wrote about the new fund on Partner Ben Horowitz’s blog. “Creating the co-investment fund was an easy decision,” O’Farrell said in a press release. Andreessen Horowitz Creates $200 Million Co-Investment Fund Aimed at Growth Companies Brings Total Funds Under Management to $1.2 Billion MENLO PARK, Calif. — Venture capital firm Andreessen Horowitz ( today announced that it has created a co-investment fund for its Fund II, bringing total assets under management to $1.2 billion.
About Andreessen Horowitz. What Down Fundraising Market? Insight Partners Bags $2B. Insight Venture Partners revealed Monday it has set up two funds with about $2 billion to manage, marking the latest in a rapid series of announcements from VCs of billion-dollar fundraising totals as the industry as a whole seemingly faces a dearth of willing investors. Insight Venture Partners Fund VII reeled in $1.5 million in commitments, and $70 million more from affiliates and friend commitments, the firm announced Monday, and Insight Venture Partners Coinvestment Fund II, which tags along on bigger deals, received $450 million in commitments.
Staying in line with Insight’s existing strategy, Fund VII will seek out global software and Internet services deals. Venture capitalists have struck some major funding commitments with LPs lately, coinciding with a meteoric rise in secondary markets at which many VCs’ assets are listed. Investors have been supportive of top-tier VCs this year. It’s No Joke. IPOs Are Back, Baby: Tech News and Analysis « Fourteen venture-backed companies went public in the first quarter of 2011, raising $1.4 billion in the process, according to the National Venture Capital Association. That’s the highest number to go public in a quarter since 2007. While only seven of these companies were in the Internet and technology fields (the rest were in medical and biotechnology), the more interesting data was on mergers and acquisition amounts, which were awesome for Internet-related businesses and pretty grim for hardware and semiconductors (see chart below).
In other words, it’s still all about the software. The NVCA reports that during the first quarter there were 74 M&A deals with a disclosed total dollar value of $3.3 billion. The report also offers good news for the companies that have gone public, as well as for the 49 companies that have filed to go public soon: Of the 14 IPOs in the first quarter, 11 are trading at or above their offering prices as of March 31, 2011. European Venture Fundraising On Track For A Boost In 2011; 89 Funds In Market. A total of 89 European-focused venture capital funds are raising capital this year, well more than double the number of funds that closed on new money last year, according to a study.
The news suggests an uptick of investment interest and perhaps confidence. It also foreshadows an improvement in fund formation. The 89 funds hope to raise $13.8 billion, according to the research firm Preqin. Last year, 34 European-focused venture funds closed on $5.8 billion, Preqin found. Almost half of the funds raising money have had at least one interim close, with commitments so far totaling $6.5 billion, according to the study. The largest fund seeking money is AF Eigenkapitalfonds Für Deutschen Mittelstand, which is targeting $705 million and expects to provide capital to 15 to 20 companies in Germany.
The second largest fund is Englefield Capital Fund III. Www.reuters.com/article/2011/03/29/kleinerperkins-whitman-idUSN2929300120110329?feedType=RSS&feedName=marketsNews. See no IPOs, hear no IPOs, but they’re coming fast. While we’ve seen a pickup in initial public offerings of late, most notably in Q4 2010 prior to the holiday slowdown, many people watching the market continue to expect muted IPO market prospects relative to the 1990s. Maybe that’s not such a bad thing. The last time there was anything approaching a positive consensus was early 2000, and we know how that ended. Sarbanes Oxley? Frivolous lawsuits? See No IPOs The IPO markets overall are highly receptive. This phenomenon is not unique to 2010 (Exhibit B).
Looking only at US IPOs, the last decade has seen a drought of biblical proportions. Supply: Previous droughts of even a few years were generally followed by floods of activity (Exhibit C). Taking a company public prior to break-even is not uncommon; going public years prior to projected profitability, with additional follow-on financings required keeping the company afloat … that was unsustainable.
Foregoing a public listing means a higher cost of capital. Size Matters? DFJ Esprit Sees 5x Return on TLC Exit. European venture investor DFJ Esprit said that it sold portfolio company TLC to Serco plc for 55.9 million pounds. The firm said the exit represents a 5x return on its investment. TLC is a supplier of customer relationship management technologies. PRESS RELEASE Leading European venture capital firm DFJ Esprit has announced the sale of TLC, supplier of Customer Relationship Management, call centre and telemarketing solutions, its fourth exit so far in 2011.
This success follows the sales of Lovefilm, and The Cloud this year, continuing a series of seven exits over the past twelve months totalling $1.2 billion in enterprise value. Announced yesterday, TLC was sold to Serco plc for £55.9m, this exit represents a 5x return on DFJ Esprit’s investment.” Paul Murray, Partner, DFJ Esprit: “TLC is an award winning company and has delivered terrific growth over the last few years. Simon Cook, CEO, DFJ Esprit, says: “We have begun the year with a bang.