SEATTLE – Guide Ventures in late October wrapped its inaugural fund, Guide Ventures II L.P., on $21 million.
Managing directors Russ Aldrich and Jim Thornton raised the fund from 19 limited partners, including institutional investors, late-stage venture capital firms and family offices. Thornton said Guide targeted West Coast L.P.s exclusively, and he described the fund-raising process as “relatively painless.”
Guide II will invest in seed- to start-up information-technology companies, backing nine companies with $2 million to $2.5 million each, Thornton said.
In October, Guide II had its first liquidity event when Media Metrix Inc. bought AdRelevance Inc., a Seattle-based Guide portfolio company. Both are in the Internet-traffic measurement business.
Aldrich, a founding partner of Redleaf Ventures, formed Guide in February with former angel investor Jim Thornton (VCJ, February, page 5.) Guide II reached a first close on $10 million in June (VCJ, July, page 25). The Roman numeral II in the fund’s name reflects the fact that it is a follow-up to Aldrich’s Redleaf, which invested a fund using the same strategy as Guide employs. The fund was launched with a $20 million to $25 million target, but the group opted to discontinue fund raising after the AdRelevance sale, Thornton said.
In addition to closing the fund, in October Guide added David Kowalick as a senior associate.