BALTIMORE – Anthem Capital plans to raise a second venture capital fund targeted between $50 million and $75 million, said General Partner Bill Gust.
Anthem makes early-stage investments in companies in the Internet, software, telecommunications and life-science industries. The firm focuses on companies based in Baltimore and outlying regions.
“We look at companies that, depending on how fast you go, are within a two-hour drive,” Gust said. “The larger fund will not be a major deviation from our current strategy, although we will now commit at least $1.5 million in a company’s seed round.”
The firm’s first investment vehicle, the $43 million Anthem Capital I LP, is nearly fully invested. In December, Anthem invested in the $25 million mezzanine round raised by Sequoia Software, which also included investments from Baker Communications Fund, divine interVentures, Mid-Atlantic Venture Funds and Flanders Language Valley Fund. Anthem led the Columbia, Md.-based software developer’s $2 million seed round in 1996.
Gust said terms of the second fund will remain the same as its predecessor, with a 80%/20% carried interest split and a 2.5% management fee. He added that Anthem plans to promote associate Alexander Perry as the firm’s fourth partner. Anthem likely will hire two additional associates to help manage the fund.
Gust expects to close the fund in first quarter of 2000.