Private Equity
I often hear that the best VCs are those who once sat on the other side of the table -- investors who "get it" because they were once "in it." On the other hand, that argument is usually coming from VC firms who just hired one of those ex-operators, or from an entrepreneur who just took funding from one. So a simple question: Do ex-operators make the best venture capitalists? To get an answer, I pulled out the latest edition of Forbes' Midas List, which is supposed to rank the most successful venture capitalists. We can certainly quibble about Forbes' inclusion methodology and individual results (the older skew, for example), but hopefully can agree that the overall list is a good sample of quality investors. Next to each of the 100 Midas Listers, I put one of three classifications that best described the individual's career prior to venture capital. They were: "C" for C-level executive, "O" for lower-tier operators and "X" for those without, or virtually without, formal operating experience (ex-bankers, consultants, career VCs, etc.).
2 min read · 14 July 2009
LinkedIn CEO Jeff Weiner was recently profiled in the U.K.'s Sunday Telegraph, in a feature that surprised -- not for what Weiner revealed, but for what he didn't. Asked in which country his European-born wife was born, for example, Weiner inexplicably declined to answer. Asked where his family enjoys vacationing, he declined to respond. (I can understand security concerns, but even a country name would have come across as more polite.) Weiner also wouldn’t say what kind of car he drives. The reporter reasoned that “perhaps Weiner's reticence fits in rather well with LinkedIn's business model as ‘a place for serious business people to do serious business.’” I think that’s an overly generous conclusion to draw.
3 min read · 14 July 2009
Steven Brill, founder of the company whose "Clear" system allowed members to pass quickly through airport security, has never been a shrinking violet. It should come as no surprise then that Brill is publicly distancing himself from the company's failure, just months after being pushed out by venture capitalists who invested over $50 million. “There are different measures of success,” Brill said in an interview today with the Atlanta Journal-Constitution. “One is business success. And the other is this: Did you handle yourself in each situation with integrity and were you there to answer questions when it succeeded or it failed? I’m very proud of all of that in my life.”
2 min read · 13 July 2009
Insight Venture Partners is one of the VC world's darlings right now, having taken two portfolio companies public in the past month. But peHUB has learned that a partner on one of those investments, George McCulloch, has left the firm to hang his own shingle. Joining him are fellow Insight managing director Ben Levin and senior associate Sarah Haas. The new firm is called Level Equity, and is based in New York City. No word yet on firm strategy, although both McCulloch and Levin have historically focused on the IT sector. Prior to joining Insight in 2002, MCulloch worked on growth equity deals for Summit Partners in software, semiconductor and communications companies, while Levin concentrated on data networking deals for Greenwich Technology Partners. "They are good, talented guys who saw an opportunity to scratch their entrepreneurial itch," says Jeff Horing, a co-founder
2 min read · 13 July 2009
1 min read · 06 July 2009
Ryan Sweeney has joined Accel Partners as a partner focused on growth equity investments. He previously was a principal with North Bridge Venture Partners and, before that, with Summit Partners.
1 min read · 06 July 2009
Mike Volpi has joined Index Ventures as a partner in the firm's London office. He previously was CEO of online video company Joost, where he will continue to serve as chairman. Joost last week announced major layoffs and a business strategy shift. Joost is an Index portfolio company. Prior to Joost, Volpi oversaw Cisco's routing and service provider business.
2 min read · 06 July 2009
Marc Andreessen stopped by our offices last week to discuss his new fund, and I took the opportunity to throw out some off-topic questions about Twitter (he's an angel investor), LinkedIn (ditto) and Facebook (he's on the board): How does Facebook CEO Mark Zuckerberg remind you of your younger self and how is he different? The big difference is he really wants to be the CEO and has tremendously applied himself to doing that. I actually think he’s not that similar to me from that standpoint. He’s doing a really good job of running company and really wants to. That’s a big difference. Similarities? I don’t know. Young? . Young and hard working. He’s the real deal. He wants to buckle down. He wants to build a great company. He doesn’t want to sell it.
6 min read · 06 July 2009
1 min read · 06 July 2009
Navin Chaddha joined Mayfield Fund less than three years ago, but he is already one of the firm’s most recognizable faces. The 38-year-old got his start as an entrepreneur at the age of 25 and successfully co-founded three VC-backed companies that were eventually acquired or went public: VXtreme, a VC-backed streaming media software company; iBeam Broadcasting, an Internet streaming media provider; and Rivio, which provided Web-based services to optimize operations for small businesses. Chaddha made the shift to venture in 2003, joining Mobius Venture Capital as an EIR, then transitioning to venture partner. A year later, he became a general partner at Gabriel Venture Partners, then joined Mayfield as a managing director in September 2006.
2 min read · 01 July 2009
