2010 And 12 Exits Have Been Very, Very Good For Bessemer

Bessemer Venture Partners has had a good 2010.

A string of 12 exits brought welcome liquidity to the firm, which has offices in India, the United States and Israel. The firm saw a more than 3X return overall from the dozen deals, according to Rob Chandra, a partner in its Menlo Park, Calif.-based office.

“This is certainly a better year than the last two years,” he said in a recent interview. “It’s a good year.”

Good year, indeed.

Chandra says the exits lay a solid foundation for Bessemer’s $1.2 billion seventh fund raised in 2007. The fund invested in eight of the firm’s 12 portfolio companies that achieved liquidity and, as a result, is expected to return a large multiple of capital to investors, he said. It is expected to be a healthy, profitable fund, he added.

Three of the exits will add to returns for the firm’s fifth and sixth funds.

Chandra declined to offer deal-by-deal returns data for all but one of the transactions. But he said the exits came broadly from across the Bessemer portfolio in the United States and India and from investment categories such as life sciences, cleantech and technology.

In terms of IPOs Orient Green Power went public in India at a $475 million valuation; IL&FS Transportation Networks Ltd. went public in India at a $1.1 billion valuation; Aveo Pharmaceuticals went public on Nasdaq at a $265 million valuation; and Broadsoft Inc. went public on Nasdaq at a $250 million valuation (valuations provided by Bessemer).

With M&A activity (again, valuations provided by Bessemer), Playdom Inc. was bought by Walt Disney Co. for $760 million; Quidsi, owners of Diapers.com, was agreed to be bought by Amazon.com Inc. for $540 million; Alnara Pharamaceuticals was acquired by Eli Lilly & Co. for $380 million; CPower Inc. was acquired by Constellation Energy Group Inc. for $78 million; Storwize Inc. was bought by IBM for $140 million; Axis Network Technology Inc. was bought by Ace Technologies Corp and Ace & Partners for $35 million; Netsmart Technologies Inc. was acquired by Genstar Capital LLC for $265 million; and OLX was bought by Naspers for $167 million.

Of course now we all want to know what’s in store for 2011.