Portfolio Profiles – Draper Fisher Jurvetson –

REDWOOD CITY, Calif. – Draper Fisher Jurvetson exclusively invests in early- to seed-stage information technology companies in the United States.

The firm’s latest vehicle, Draper Fisher Jurvetson Fund VI, wrapped on $375 million in August 1999, above its $275 million target. Director Warren Packard expects to have the fund fully committed to or invested in 25 to 30 companies within the next 18 months.

Fund V closed on $200 million in 1998 and is fully invested in 21 companies. Draper Fisher Jurvetson Fund IV wrapped in 1997 on $90 million, Fund III closed in 1995 on $50 million and Fund II wrapped in 1992 on $20 million. The firm’s freshman effort, Draper Fisher Jurvetson Fund I, a small business investment company (SBIC) evergreen vehicle launched by Founder Tim Draper, wrapped on $6 million in 1985, Packard said.

Limited partners for the firm’s funds include high-net-worth individuals, entrepreneurs and some institutional investors. The firm declined to provide further details about its LPs.

Draper founded the firm along with John Fisher and Steve Jurvetson in 1985. Jennifer Scott Fonstad is a director, Mark Greenstein is a director and chief financial officer, Andreas Stavropoulos and Albert Tsuei are associates, and Stuart Davidson and Larry Kubal are venture partners.

Draper Fisher has attracted a lot of attention as a result of the huge successes of some of its portfolio companies such as Hotmail Corp., which was later sold to Microsoft Corp. for an estimated $395 million, Packard said.

Although Draper Fisher confines itself to domestic IT investments, its international and regional partners include Draper Atlantic, Draper International, Wasatch Venture Fund, Polaris Fund, Timberline Venture Partners and Zone Ventures. The firm and its partners form an extensive network of resources for their portfolio companies.

Draper Fisher Jurvetson does not have an advisory board, but is “fortunate to benefit” from the experience of its LPs.

Following are some of Draper Fisher Jurvetson’s portfolio companies:

Direct Hit Technologies Inc. (Wellesley, Mass.) develops a Web search engine that produces lists of sites based on their popularity.

Co-investors included Mosaic Ventures and TA Associates.

Digital Impact Inc. (San Mateo, Calif.) provides direct e-mail marketing campaigns for businesses and helps them target and personalize e-mail messages, manage campaigns, track results and monitor databases.

Institutional Venture Partners was a co-investor.

DigitalWork.com Inc (Chicago) provides entrepreneurs with a suite of easy-to-use online services organized into do-it-yourself’ workshops.

Co-investors included TL Ventures and Attractor Capital Management.

Entegrity Solutions Corp. (San Jose, Calif.) provides software and services to enable the exchange of secure e-mail messages within networks and between various platforms.

Co-investors included Internet Capital Group.

Everdream Corp. (Mountain View, Calif.) provides comprehensive computer services to small businesses, including extensive technical support and data recovery services.

There were no co-investors.

Hotmail Corp. (Sunnyvale, Calif.) is the largest provider of Web-based e-mail services and was sold to Microsoft Corp. in 1998.

Menlo Ventures was a co-investor.

Interwoven Inc. (Sunnyvale, Calif.) provides content production and management software to e-businesses.

Co-investors included Foundation Capital and JK&B Capital.

Kana Communications Inc. (Redwood City, Calif.) provides online customer communication software and services for e-business marketing, sales and services.

Benchmark Capital was a co-investor.

Net Zero Inc. (Westlake Village, Calif.) is an Internet service provider that does not charge its subscribers for Internet access, e-mail or navigation tools and gets its revenue from advertising.

Idealab Capital Partners was a co-investor.

RealNames Corp. (San Carlos, Calif.) offers simplified Internet searching capabilities based on company, brand and product names.

Co-investors included Idealab Capital Partners, Bowman Capital and Morgan Stanley Venture Partners.

Tumbleweed Communications Corp. (Redwood City, Calif.) provides businesses with secure document delivery over the Internet.

August Ventures was a co-investor.

Draper Fisher Jurvetson is located at 400 Seaport Court, Suite 250, Redwood City CA 94063. tel: (650) 599-9000, fax: (650) 599-9726. The firm’s Web site is http://www.drapervc.com/.