Zone Ventures, a member of the Draper Fisher Jurvetson affiliate network, has launched a $200 million third fund, double the size of its last fund, according to a regulatory filing.
Zone, based in Los Angeles, will no doubt sell its fund based on the strength of the firm’s only IPO to date: DivX (Nasdaq: DIVX). The company offered at $16 per share on Sept. 22 and was trading at about $30 a share early in December.
DivX raised $47 million from its venture investors, starting in 2000, and now has a market capitalization of $970 million. Zone participated in the first three rounds along with WI Harper, Wasatch Ventures, Draper Richards, Draper Atlantic Ventures, Argus Capital Group and Cardinal Venture Capital. Insight Venture Partners was the only DivX investor in the $17 million Series D.
DivX is Zone’s only major hit. The firm has seen four of its portfolio companies get acquired since it was founded in 1998. It sold facial recognition startup Neven Vision, which had raised $5 million in venture investment, to Google for an undisclosed amount in August 2006. It sold online catalogue company Allpets.com, which had raised $1.3 million, to PetQuarters for $8.6 million in May 2000. It sold productivity software maker Advanced Software Technologies Inc., which had raised $5.5 million, to Embarcadero Technologies for $15 million in November 2000. And it sold engineering software startup 3GA, which had raised $4 million, to Kubota for an undisclosed amount.
It has been a year of change for the DFJ affiliate network. It lost DFJ ePlanet Ventures in January when firm founder Asad Jamal launched his own $550 million fund. Then, in October, Draper Atlantic Ventures and DFJ New England opted out of the network and formed a new independent entity known as New Atlantic Ventures.
It is unclear from the filings if Zone Ventures III will be included under the DFJ affiliate umbrella. None of the partners was available for comment. The firm is led by Managing Director Frank Creer and Partners Darius Sankey and Paulo de Rezende. —Alexander Haislip