Charles River Promotes Armony and Guerster to Principal Role –

BOSTON – Charles River Ventures in July promoted Senior Associates Jonathan Guerster and Izhar Armony to principals, increasing the firm’s senior-level staff to five members.

The two men began working at Charles River in the summer of 1997, each leading numerous deals in his respective area of expertise. Guerster led and managed many investments in e-commerce companies including eDocs Inc., Instill Corp.,, and Synchrony Inc. Armony meanwhile, focused on enterprise software and business-to-business companies, leading the firm’s investments in Celarix Inc., iBasis Inc., Oberon Software Inc., TrainingNet Inc. and Yantra Corp.

Expanded Responsibilities

Both Guerster and Armony will continue to focus on investing in early-stage information technology projects. In addition to maintaining seats on the boards of directors of those companies, the two men will take on more active roles in Charles River’s decision-making and management activities, including setting policy, fund raising and managing the firm’s portfolio companies.

“We’ve had a chance to work closely with [Guerster and Armony] now for some time,” said Charles River Partner Ted Dintersmith, emphasizing their top-flight performance as investors and the personal chemistry of the investment staff as the main reasons for the promotions.

While the title changes will not affect day-to-day activities at Charles River, the move solidifies the firm’s commitment to being market-focused, Guerster said, explaining that he and Armony are experts in the e-commerce, e-services and business-to-business markets.

“Each of them is legitimately a domain expert of certain sectors of the e-business map,” Dintersmith said.

Prior to joining Charles River, Guerster was director of financial services and then director of corporate development at Open Market Inc., an Internet commerce software company.

Armony worked for General Atlantic Partners, where he focused on enterprise software. Before that, he worked with Onyx Interactive Ltd., an interactive training software company, where he was director of business development and helped design software.

Charles River provides capital for start-up technology companies in the data communications, software and information services sectors. The firm mainly invests in companies between Washington, D.C. and Boston, although it is willing to invest elsewhere.

The firm currently is investing its $175 million Charles River Partnership IX, some 75% of which already is invested or committed, Armony said.