.406 Ventures Raises $167 Million Early Stage Venture Fund
.406 Ventures Raises $167 Million Early Stage Venture Fund
Mar. 11, 2008 08:09 PM
BOSTON, MA -- (MARKET WIRE) -- 03/11/08 -- .406 Ventures, an early stage, technology and
tech-enabled services-focused venture capital fund, announced that it has
successfully closed .406 Ventures I LP at $167 million of committed
capital. The fund was oversubscribed.
"We are extremely pleased to have exceeded our $150 million target in
raising our first fund and especially pleased to be partnered with such
high caliber institutional and family office investors. We found that our
strategy resonated with investors who believe that there are unparalleled
returns in early stage venture and that this type of investing is best done
by smaller funds with highly focused, operationally-oriented partners,"
said Liam Donohue, Managing Director.
.406's investors include Credit Suisse's Customized Fund Investment Group,
Invesco Private Capital, Parish Capital Advisors, Washington University
(St. Louis) Endowment, New York City Employee Retirement System and
Employees Retirement System of the State of Rhode Island in addition to
foundations, family offices and the General Partners.
.406's investment team includes founding partners Larry Begley, Maria
Cirino and Liam Donohue as well as Greg Dracon, Principal, and Graham
Brooks and Kara Sweeney, Associates. The support team includes So-June
Min, Chief Financial Officer, and Kelci Horan, Office Manager.
.406 targets true early stage companies and generally expects to be among
the first institutional investors in its portfolio companies. In addition
to capital, .406's team brings extensive operating and entrepreneurial
experience as well as strong professional networks to its investments.
"As former entrepreneurs and operational executives, we understand
firsthand how important it is to have active, well-connected and passionate
investors involved at the early stages of a company. We see an exceptional
opportunity for firms like .406 to make investments early in a company's
lifecycle so that the combination of our capital and our operational
expertise can help get companies launched successfully and headed in the
right direction," said Maria Cirino, Managing Director. "We aspire to be
the type of investor we sought to have around our boardroom tables when we
were running companies and facing the challenges and opportunities inherent
in starting companies," Cirino added.
.406 invests in technology and technology-enabled business services, with a
strong emphasis on IT Security, Open Source software and businesses that
address large IT problems by applying proprietary technology via a service
model. "We have decades of experience building companies in the technology
and services industries and continue to see exciting opportunities for
investment there. We make investments where we have experience and can
bring value beyond our capital. We have found that the more value we can
provide, the greater and faster the portfolio company builds value," added
Larry Begley, Managing Director.
To date, .406 has made nine investments including Business Intelligence
Advisors, a unique provider of investment-oriented insights; Optaros, a
leading provider of next generation Internet applications; RatePoint, a
leading online reputation service; identity verification provider
ChosenSecurity Inc.; RFID pioneer ThingMagic; enterprise application
whitelisting leader Bit9 Inc; application security testing pioneer
Veracode; and Memento Inc., which offers an industry leading software
product to detect internal fraud.
In addition, the Fund had its first exit in December with the sale of
Health Dialog Services Corporation to BUPA for $775 million in cash.
About .406 Ventures
Founded in 2006, .406 Ventures is an early-stage venture capital firm that
invests in innovative Information Technology ("IT") and services companies
founded by the finest entrepreneurs. The .406 Ventures team is comprised of
industry entrepreneurs, operators and investors who apply real world
experience, deep industry knowledge and networks, and strong
company-building skills to create value for our entrepreneurs and investing
partners. .406 Ventures makes early-stage and de novo investments in
market-changing IT Security and Infrastructure, Technology-Enabled Business
Services, and Next-Generation Software companies.
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