MENLO PARK, Calif. – Doll Capital Management expected a final close on about $450 million for its third vehicle, DCM III, in late September or early October, said Peter Moran, a general partner at the firm.
The fund held a first close on $250 million in late June, and the final close is expected to fall “distinctly in excess of the cover,” which reads $350 million, Moran said. The vehicle will back between 30 and 35 early-stage Internet and communications companies (VCJ, May 2000, page 20).
At press time, Doll Capital had made its first investment – $4.5 million – out of the new fund, Moran said, but would not disclose the name of the company.
Doll Capital plans to invest between 20% and 25% of its new fund internationally, with a focus in Asia. The firm set up a joint partnership with Itochu, an early-stage investment group in Japan, through which it will dedicate between $10 million and $15 million of its fund to Itochu’s $80 million vehicle. Doll Capital also will have the opportunity to co-invest and do follow-on investments with the foreign investor, Moran said.
Doll Capital’s previous fund, the $155.5 million Doll Technology Investment Fund II, which closed in September 1999, is now completely invested in 20 companies, Moran said.
Limited partners in the fund include Horsley Bridge Partners and FLAG Venture Partners LP, in addition to a host of other domestic and international players (VCJ, May 2000, page 20). The firm retains a 75%/25% carried interest split and a 2.5% management fee, he said.
The firm’s investment team consists of Managing General Partner Dixon Doll, General Partners David Chao, Rob Theis and Moran, and Partners Thomas Blaisdell and Eric Gonzales. The firm is in the market for an investor with experience in the wireless communications arena, Moran said.