LOS ALTOS, Calif. – Media Technology Equity Partners L.P. plans to raise a $75 million seed-stage fund this fall, on the heels of a $155 million April close on its first fund, which invests in early- to mid-stage media and information technology companies.
More than half of the inaugural fund already is invested, and the firm plans to commit the remaining $70 million in the next few months, said Managing Director Robert Ackerman, who added that several of the firm’s corporate limited partners are likely to invest in the new fund.
“We have built a broad network of corporate relationships and are looking for these corporations to buy into our vision,”Mr. Ackerman said.
The proposed seed-stage fund does not have a minimum investment size, Mr. Ackerman said.
“We need to work on writing small checks,” he said. “There is a danger in raising too much money too quickly.”
Limited partners in the $155 million fund include Thomson Multimedia, a division of VCJ’s corporate parent, MediaOne, Boeing, Freedom Communications Inc., WPP Group plc, GE Equity, NBC, Hearst New Media & Technology, Sonera, American Express and Siemens AG.
The fund will invest between $6 million and $10 million each in companies “that are formed from the convergence of communication content and electronic commerce,”Mr. Ackerman said. These include wireless and Internet platform telecommunications providers, broadband Internet service providers and e-commerce retailers. Media Partners will consider investing in content companies but only if their product is a component of larger operations.
“We are not big believers in pure advertising supported revenue models,” he said.
To date, Media Partners has committed $22 million to early-stage companies including Quokka Sports and EC Direct.
“We look for situations where the management team is largely complete, and the company is on the cusp of generating revenues,” he said.