NEW YORK – Atlantic Venture Partners is raising an inaugural fund targeted at $50 million to $75 million.
The firm held a first close on more than $20 million in September and expects to have an additional one or two closes before a wrap sometime before March 2000, said Ross Goldstein, a managing partner at the firm.
Atlantic Venture plans to invest in about 12 to 15 early- to late-stage information technology companies primarily on the East Coast.
“The East Coast represents a great investment opportunity, given the number of high quality companies that have been formed or are being formed here,” said Daniel Schultz, a managing partner at the firm.
Atlantic Venture will back each company with some $1 million to $7 million, with typical investments of about $4 million spread out over several rounds of financing.
In addition to making traditional investments in U.S. companies, the firm’s strategy includes investing in companies of Israeli origin as they enter the U.S. market. Shultz points out, however, that it will be the quality of the companies, rather than the need to fill a quota for U.S. and Israeli companies, that will drive the firm as it rounds out its portfolio.
The managing partners believe their investments will fill a void in an underserved marketplace in the U.S., Goldstein said.
The firm’s limited partners are Comverse Technology Inc., a company that originated in Israel and is now based on Long Island, and a handful of high-net-worth individuals, some of whom are either current or former executives at Intel Corp., Sun Microsystems Inc., Dell Computer Corp., 24/7 Media Inc., Sapient Corp. and Cheyenne Software Inc.
The firm’s general partners are Schultz, formerly head of the equity private placement group at Lehman Brothers, and Goldstein, who focused on technology, telecom and media companies in Morgan Stanley’s investment banking division, and most recently was chief financial officer at Interactive Imaginations Inc., the predecessor to 24/7 Media.