MELO PARK, Calif. – When it comes to Information Technology Ventures (ITV), its name is truly apropos because the firm invests exclusively in IT.
Formed in 1994 by Mark Dubovoy, Sam Lee and Virginia Turezyn, ITV often is the first institutional investor, dedicating about $7 million over the life of a portfolio company. Eric Chin joined the group as a principal earlier this year.
The firm has $213 million under management, having closed Information Technology Ventures II, L.P. on $131 million, plus a $5 million affiliate fund, in early 1998. The vehicle was preceded by Information Technology Ventures, L.P., a $75 million fund that closed in 1996, along with a $2 million side fund. The first fund is fully invested, and the second is halfway completed.
ITV was a lead investor in two-thirds of the deals from its first fund and has thus far led every deal from its second vehicle, Dr. Dubovoy said. The firm often co-invests with other firms but at times goes it alone. “We’re not afraid to fly solo, but most of the time we syndicate.”
Dr. Dubovoy was uncertain when the firm would raise a third fund but indicated that 2000 was a “wild guess.”
Limited partners include the California Public Employees’ Retirement System, the University of Texas system (UTIMCO), FLAG Venture Management, the Hewlett Packard pension, the Commonfund Inc., PacifiCorp, the Los Angeles County Employees’ Retirement Association, BankAmerica Capital Corp., Glenmede Trust Co., Amherst College, Vulcan Ventures, CoreStates Investment Advisors and Penn Janney Advisory.
Following is a select list of ITV portfolio companies:
123tel Inc. (San Jose, Calif.) develops e-commerce software tailed to the telecommunications industry.
U.S. co-investors are TL Ventures, JAFCO America, Draper Richards and Intel Corp.
Berkeley Networks Inc. (San Jose) develops high-performance enterprise-level network switches to optimize handling of Internet Protocol packet traffic. The company was acquired by FORE Systems.
New Enterprise Associates also invested.
Chameleon Systems Inc. (Sunnyvale, Calif.) is a fabless semiconductor company developing an adaptable compute engine integrated-circuit for high-performance embedded communications processing applications.
Co-investors are Morgenthaler Venture Partners and Convergence Partners.
Lightwave Microsystems Corp. (Santa Clara, Calif.) makes optoelectronic modules and subsystems for data networking and telecommunications systems.
Co-investors are Oak Investment Partners, Draper Fisher Jurvetson, Worldview Technology Partners, ITech Partners, Weiss, Peck & Greer Venture Partners, Bessemer Venture Partners, Hitachi Chemical Co. and Lockheed Missiles and Space.
Smart Machines Inc. (San Jose) makes direct drive robots for transporting wafers in semiconductor process tools.
Bessemer Venture Partners, Tribridge Affiliates and Innotech co-invested.
StarVox Inc. (San Jose) develops IP telephony gateways that offer new services instead of just toll-bypass savings.
Novus Ventures, Aspen Ventures and Compass Technology Partners co-invested.
TeraStor Corp. (San Jose) makes ultra-high-capacity, high-performance data-storage devices based on proprietary magnetic and optical technologies.
Co-investors are Quantum Corp., Charter Ventures and Vulcan Ventures.
WAVTrace Inc. (Bellevue, Wash.) develops point-to-multi-point millimeter wave telecommunication systems that will be used to deploy alternative access links for local loop bypass applications.
Advent International, Alta Partners, Crosspoint Venture Partners, Bay Partners, NY Life Insurance Co., Hambrecht & Quist, Vulcan Venture and JF Shea & Co. co-invested.
ITV’s office is at 3000 Sand Hill Road, Building One, Suite 280, Meno Park, Calif., tel. (650) 854-5500, fax. (650) 234-0130. The firm’s Web site can be found at: www.itventures.com.