Dali Hook Partners splits up

Dali Hook Partners is no more, as co-founders Paul Dali and David Hook appear to have gone their separate ways. Dali is now in charge of successor firm Keynote Ventures, while Hook is running a separate entity called Baymark Partners.

Messages to the firm’s partners were not returned before press time.

The two venture veterans co-founded Dali Hook, which is based in Menlo Park, Calif., in early 2001 to make early stage investments in communications, software and semiconductor companies.

Dali, who works out of Menlo Park, previously had been the founder and managing general partner of Convergence Partners, with past GP experience at Nazem & Co. and 3i Group. Hook, who is based in Dallas, previously worked at Mohr Davidow Ventures in the mid-1980s, before co-founding a firm named Hook Partners.

Dali Hook soon added venture partner Haru Kato, and then closed its inaugural fund with nearly $70 million in 2001. Like most vintage funds of that era, Dali Hook invested in its fair share of since-deceased startups, including Clique.com, Metera Networks, Monet Mobile, OptiMight Communications and Yotta Networks. But it also had its fare share of liquidity events, with a pair of IPOs, including Power Integrations (which went public in 1997 in a $32 million IPO and was funded by a predecessor fund) and Volterra Semiconductors ($36 million IPO in 2004) and more than one dozen portfolio company acquisitions.

The firm added Alessandro Biral in 2003, and then last year raised a little more than $40 million for an annex fund from limited partners, such as Adams Street Partners and HarbourVest Partners. A related regulatory filing just lists Dali, Katu and Biral—with David Hook only present as a masthead namesake. The final public mention of Dali Hook came on Feb. 7, when LoadStar Sensors announced that the firm had participated in a $7 million Series B round. Since then, Dali Hook’s website has been redirected to the new Keynote Ventures page, without mention of either Hook or the Dallas office.

On its website, Keynote calls itself an early stage venture firm that focuses on technology plays.

A source familiar with the situation says to expect a Keynote fund offering shortly, while Hook is currently looking to staff up. —Dan Primack