Austin Ventures in another buyout play

Texas-based venture capital group Austin Ventures has launched a new rollup in the information services space, backing Bloomberg veteran Elisabeth DeMarse.

Texas-based VC group Austin Ventures has launched a new platform to target the information services industry, putting $50 million (€41 million) behind Bloomberg veteran Elisabeth DeMarse to pursue a rollup in the space.

The company, which will be based in New York and operate under the banner DeMarseCo, will look to acquire and develop high-growth information services businesses.

We believe that there are numerous attractive, high-growth segments within the digital information business, traditional media and new media sectors.

Craig Milius, principal, Austin Ventures

Craig Milius, a principal at Austin Ventures, noted in a statement that the firm was attracted to the high-growth prospects present in the sector, and added that DeMarse has demonstrated a talent in the past for driving performance.

“We believe that there are numerous attractive, high-growth segments within the digital information business, traditional media and new media sectors,” Milius said.

In addition to Bloomberg, DeMarse has also put in stints at Hoovers, Citibank and most recently Bankrate, where she served as president and chief executive of the publicly held banking website.

Austin Ventures has increasingly shown a taste for buyouts in the past couple of years. The firm, in February, launched a bid to take private IP network and data services provider 724 Solutions and has also launched similar rollups to the DeMarsco platform, including a platform in the supply-chain and outsourcing space that is headed by FedEx veteran William Razzouk.