MENLO PARK, Calif. – Menlo Ventures primarily invests in early-stage and emerging growth companies in the communications, software, Internet and health-care industries in the United States.
The firm’s latest vehicle, Menlo Ventures VII, closed in 1996 at $250 million, bringing in a few new institutional investors, as it has with previous funds. Each fund typically invests in 30 to 35 companies, and Menlo Ventures VII has so far invested in or committed to more than 20. The firm plans to raise an eighth fund in 1999, said General Partner H. DuBose Montgomery.
The fully invested $175 million Menlo Ventures VI closed in 1993, and Menlo Ventures V, also fully invested, closed in 1988 at $110 million.
Menlo Ventures acts as the lead investor in 80% to 90% of its deals and often serves as the deal originator in the early rounds. The firm seeks companies that are potential leaders in new, emerging and rapidly growing markets, and Menlo Ventures’ investments typically range from $2 million to $10 million over several rounds of financing. The firm’s partners typically assume a board seat, but in some cases they have taken two.
The firm, founded in 1976, has six general partners: Mr. Montgomery, Thomas Bredt, Douglas Carlisle, John Jarve, Dr. Michael Laufer and Sonja Hoel. They are supported by associates Mark Siegel and Dr. Christopher Kersey, chief financial officer Catherine Shaw and analyst Hilary Hoover.
Following is a list of selected portfolio companies:
Amplitude Software (San Francisco) provides time-oriented applications for the World Wide Web.
Co-investors include New Enterprise Associates.
Ascend Communications (Alameda, Calif.) delivers communications equipment in the key areas required to build high-performance, cost-effective public and private network infrastructures.
Co-investors include Greylock Management Corp.
Asterion (Seattle, Wash.) provides software for connecting physicians, laboratories and hospitals to improve health-care delivery.
BlueGill Technologies (Ann Arbor, Mich.) develops software applications that allow corporations to present bills and other mass-produced documents to consumers via the Internet.
Co-investors include Morgenthaler Ventures.
Carrier Access Corp. (Boulder, Colo.) provides communications products to phone companies and their customers.
Needham & Co. Inc. is co-investor.
Cielo Communications (Broomfield, Colo.) manufactures gigabit-per-second optical communications components.
Co-investors include Mayfield Fund and HarbourVest Partners.
Digital Insight (Calabasas, Calif.) provides Internet banking services to banks and credit unions.
HarbourVest Partners, L.L.C. is co-investor.
GoDigital Communications (Santa Clara, Calif.) develops products that help phone companies with installing, testing and maintaining digital services for customers in remote locations.
Co-investor is Accel Partners.
Priority Call Management (Wilmington, Mass.) develops intelligent telecommunications platforms and applications for service providers and corporations.
Co-investors include Canaan Venture Partners.
Rubric (San Mateo, Calif.) is a provider of enterprise marketing automation software applications.
Co-investors include Brentwood Venture Capital.
Sonnet Financial (San Mateo, Calif.) is an online international discount wire service enabling customers to get better exchange rates.
Co-investors include Draper Fisher Jurvetson and Technology Crossover Ventures.
SURx Inc. (Pleasanton, Calif.) designs, manufactures and markets medical devices that cure female urinary incontinence.
Piper Jaffray Ventures Inc. is a co-investor.
Woodside Biomedical (San Diego) develops, manufactures and sells medical devices that provide relief from the pain and discomfort of nausea and vomiting.
Co-investors include Enterprise Partners and Mayfield Fund.
Menlo Ventures is located at 3000 Sand Hill Road, Building 4, Suite 100, Menlo Park, CA 94025, tel. (650) 854-8540, fax (650) 854-7059. Additional information on the firm can be found at its Web site located at www.menloventures.com.