Fund briefs, October 2007

Globespan closes fund V

Globespan Capital Partners has raised $380 million for its fifth fund, coming in below its $400 million target, according to a regulatory filing. The fifth fund is bigger than its $285 million fourth fund, which closed in 2004. Globespan will take a 2.5% management fee for the fifth fund, according to the filing.

The firm, with offices in Boston, Palo Alto, Calif., and Tokyo, has taken five of its portfolio companies public, including BladeLogic (Nasdaq: BLOG), Clearwire (Nasdaq: CLWR), Glu Mobile (Nasdaq: GLUU), Shoretel (Nasdaq: SHTL) and Virtusa (Nasdaq: VRTU).

New Leaf branches out

New Leaf Venture Partners is raising its second fund with a $400 million target, although it could close as high as $500 million. The firm—with offices in New York and Menlo Park, Calif.—was founded in 2004 by the life sciences team from the Sprout Group, the longstanding venture capital affiliate of Credit Suisse First Boston.

New Leaf closed its inaugural fund in August 2005 with $310 million, and late last year had a big hit with the $480 million sale of portfolio company Cerexa Inc. to Forest Labs. That deal could grow even larger, with $100 million in possible milestone payments. Cerexa had raised $50 million in a lone round of funding in 2005 from New Leaf and other investors.

Zone loses partner

Zone Ventures, an affiliate of Draper Fisher Jurvetson, is pushing ahead with plans to raise a third fund, despite losing longtime Partner Paulo de Rezende Jr. The reasons for his departure are unknown.

Zone, which is based in Los Angeles, hopes to raise up to $150 million for its third early stage tech fund. It raised $100 million for its second fund in 1999. The firm is led by Managing Director Frank Creer and Partner N. Darius Sankey.

Zone was an investor in DivX Inc., a San Diego-based provider of video compression technology. DivX raised about $47 million from Zone and other investors before it launched a $150 million IPO last year.

DFJ opens up in India

Draper Fisher Jurvetson

plans to open an office in Bangalore in October, according to The Economic Times. It will be run by Partner Mohanjit Jolly, who will relocate. Venture Partner Sateesh Andra will remain stationed in Hyderabad. DFJ has allocated about $75 million of its $600 million fund for Indian portfolio companies.

Glenmont seeks $50M

Glenmont Partners is raising up to $50 million for a fund that will back early stage companies in upstate New York, according to a regulatory filing. The Albany, N.Y.-based firm also plans to make investments in New Jersey, Connecticut, Massachusetts and eastern Pennsylvania.

MSBI nears $95M target

MSBI Capital is raising its third fund with a $95 million target. The Montreal, Quebec-based firm backs early stage spinouts from Canadian universities. It held a $60 million first close back in April.

Craton halfway to first cleantech fund

Craton Equity Partners is nearing the halfway mark for raising its venture capital fund, which is focused on cleantech companies. The Los Angeles-based firm is targeting $250 million, and has raised more than $40 million on top of an $82 million first close last year.

Claritas Capital nets $12M

Nashville-based Claritas Capital, an investor in early stage health care and information service companies, has closed on about $12 million for its third fund, which has a target of $50 million, according to a regulatory filing. The firm raised $12 million for its second fund in 2005.

Venture unit to spin off from Bell Canada

BCE Capital, the venture arm of Bell Canada Enterprises, plans to spin off from its parent company and raise a $175 million fund. The fund already has commitments of $140 million, according to VentureWire, which cited two people familiar with the situation.

The new VC group, called Summerhill Venture Partners Holdings, is led by Managing Directors Gary Rubinoff, David McCarthy and Joe Catalfamo. It focuses on early stage communications, digital media and information technology businesses.

The spin off follows the secondary purchase of BCE Capital’s corporate venture portfolio, which consisted of 13 companies, to Paul Capital Partners, Permal Group Ltd., Abu Dhabi Investment Authority, Dupont and Credit Suisse First Boston. —VCJ staff