KIRKLAND, Wash./LAKE OSWEGO, Ore. – Just two months after going on the fund raising trail, Olympic Venture Partners exceeded its $100 million target, and in March wrapped its $150 million Olympic Venture Partners V said General Partner Gerry Langeler.
Olympic invests in information technology, communications and health-care companies, typically in the Pacific Northwest. The fund will back between 15 and 20 companies, with average investments of $5 million to $8 million over the life of a company. At press time, some 10% or 20% of the fund had been invested, Langeler said.
The firm’s previous vehicle, the $64 million Olympic Venture Partners IV, which closed in 1997, is completely invested in 16 companies. Typical deal sizes, ranged from $3 million to $5 million over several rounds. About half of Fund IV was invested in Internet and IT companies, as will Fund V, Langeler said.
Three of the Olympic’s recent investments – software provider Webridge Inc., genomic drug technology developer Rosetta Inpharmatics Inc. and 800.com Inc., an online seller of consumer electronics – filed to go public in March.
A vast majority of the firm’s previous limited partners joined Fund V, including Oregon Public Employees Retirement System, Washington State Investment Board, Western Metal Industry Pension Fund and Tredegar Industries. New investors include Nationwide Insurance Group, McCamish Group, Lewis and Clark College and A.G. Edwards & Sons Inc.
For the third time, Olympic created a side fund for some 80 entrepreneurs and individual investors who will assist the firm with sourcing and evaluating deals, providing perspectives on particular industries and helping its portfolio companies with making connections, Langeler said. In exchange, the investors benefit from a lower management fee and a higher percentage of the carry than is standard in the main fund. The purpose of the side fund is to join forces with the angel community rather than compete with it for deals. The $20 million Olympic Venture Partners V Entrepreneurs Fund will invest alongside the main fund.
Founded in 1983, the firm is led by General Partners George Clute, Chad Waite and Bill Miller, all based in the Kirkland office, and Langeler, based in Lake Oswego.