NEW YORK – Morgan Stanley Dean Witter Venture Partners, a division of Morgan Stanley Dean Witter & Co., invests in growth-stage information technology and health-care companies throughout the country.
Since inception in 1985, the firm has raised some $550 million spread across four funds, with investments in more than 90 companies. Morgan Stanley Dean Witter does not back seed-stage companies and commits an average of $8 million to $10 million per deal.
The firm invests in later-stage companies because of the lower risk involved and the added bonus of customer feedback, said Guy de Chazel, a general partner.
General Partners Scott Halsted and Fazle Husain have operational experience with health-care companies, while William Harding and Robert Loarie have backgrounds in IT. Because of financial, technical and regulatory risks, however, Morgan Stanley Dean Witter no longer invests in biotechnology.
Morgan Stanley Venture Partners III, the firm’s most recent fund, closed in January 1997 on $275 million. The fund held an additional $10 million close on a separate side fund for entrepreneurs and high-net-worth individuals in September 1997. The firm’s previous fund, Morgan Stanley Venture Partners II, held a $164 million final close in December 1993.
Limited partners include public and corporate pension funds, financial institutions, corporate investors, high-net-worth individuals and Morgan Stanley Dean Witter employees.
Select Morgan Stanley Dean Witter portfolio companies follow:
Allscripts Inc. (Libertyville, Ill.) provides physicians with Internet and client/server medication management software and services.
Liberty Partners is a co-investor.
Biex Inc. (Dublin, Calif.) is a medical products company that has developed a salvia-based diagnostic test to identify the potential for premature deliveries in pregnant women.
The Columbine Venture Funds, Delphi Ventures, Patricof & Co. Ventures Inc., Kline Hawkes California SBIC L.P. and Landmark Partners Inc. are co-investors.
Business Engine Software Corp. (San Francisco) is a provider of enterprise software that manages an organization’s product demands and human resources needs.
Commerce One Inc. (Walnut Creek, Calif.) develops interactive e-commerce software for the business-to-business environment.
Canaan Partners, Rho Management and Foundation Capital are co-investors.
CommTech Corp. (Cranbury, N.J.) develops, designs, markets and supports advanced operations support systems software for the global telecommunications industry.
Copper Mountain Networks Inc. (Palo Alto, Calif.) develops and markets end-to-end digital subscriber line products that enable service providers to offer connectivity over existing copper wire.
Greylock Management Corp., Sutter Hill Ventures, Matrix Partners, Canaan Partners, Technology Crossover Ventures and InterWest Partners are co-investors.
FormFactor Inc. (Livermore, Calif.) develops a micro-interconnect technology that is used to test and package computer chips for the semiconductor industry.
Mohr, Davidow Ventures and Institutional Venture Partners are co-investors.
Intuitive Surgical Inc. (Mountain View, Calif.) is a medical device company that develops products to enhance a surgeon’s ability to perform minimally invasive surgery.
Mayfield Fund and Sierra Ventures are co-investors.
Microgenics Holding Corp. (Pleasanton, Calif.) develops and manufactures immunoassays, reagents and test kits used to determine the presence and quantity of certain drugs.
Skyline Ventures is a co-investor.
NetPartners Internet Solutions Inc. (San Diego) provides software products that specialize in Internet screening and filtering technology for blocking objectionable Web sites.
Edelson Technology Partners is a co-investor.
NetSelect Inc. (Westlake, Calif.) is a leading provider of real estate content on the Internet.
Kleiner Perkins Caufield & Byers and J.H. Whitney & Co. are co-investors.
Osprey Systems Inc. (Charlotte, N.C.) provides business and technology consulting services.
BankAmerica Ventures is a co-investor.
R2 Technology Inc. (Los Altos, Calif.) is a medical device company that develops image recognition software to improve a radiologist’s ability to read and interpret mammograms.
Indosuez Ventures, Sigma Partners and Alta Partners are co-investors.
Total Network Solutions Inc. (New York) is a provider of high-end network services for large enterprises.
Morgan Stanley Dean Witter Venture Partners is located at 1221 Avenue of the Americas, 33rd Floor, New York, N.Y. 10020, tel. (212) 762-7900, fax. (212) 762-8424; 3000 Sand Hill Road, Building Four, Suite 250, Menlo Park, Calif. 94025, tel. (650) 233-2600, fax. (650) 233-2626. The firm’s Web site can be found at www.msvp.com.