Carthage Venture Partners, an African American-owned private-equity firm that targets minority-owned technology companies. Carthage formed in 1996, is comprised of sheffield and fellow partners Anthony Gee and Steve Sallion, and associate erik Miller.
Pasadena, California, Idealab Founder Bill Gross. It's a 25 employee idea factory with the sole mission of creating, developing and eventually spinning off Net ventures. Think eToys, Free-PC, GoTo.com, CitySearch.
As of June 1999 Etoys: Recently acquired BabyCenter and aims to be an all purpose children's site with a retail focus. Toby Lenk is CEO. Weddingchannel.com: geared to wedding planning. Tim Gray is CEO. Ticketmaster-CitySearch:One of the best established localized content sites onthe Internet. Charles Conn is CEO. HomePage.com: A site with free home pages. Free-PC: headed by Don LaVigne, provides users with a free computer and Internet access in exchange for personal information allowing them to deliver targeted advertising straight to your desktop where there is a permanent space reserved for the ads. GoTo.com: headed by Jeffery Brewer, is a search engine that lets merchants pay for top positions in a directed search. NetZero.com, a free ad-supported Internet service provider, headed by CEO Mark Goldston CarDirect.com, a site run by Scott Painter, which allows you to research cars, design your configuration and then order it on line. Eve.com, an on-line beauty supply store, head by Mariam Naficy and Varsha Rao. Petsmart.com, a full-service pet store, CEO is Tom McGovern
Intellimedia commerce Inc.
Ben Dyer and his internet development company Intellimedia commerce Inc. have been incubating companies on an ad-hoc basis for years. Now, he's just ready to formalize the process by adding offices and venture capital to the mix. Mr. Dyer is joing forces with Cordova Ventures, one of the city's oldest venture capital firms, and is forming a $50 million venture capital fund that will target companies in Intellimedia's inculbator as well as others. The incubator will be Internet focused and the fund will be set up to invest in early-stage companies-a riskier venture capital investment. the average investment will be about $1.5 million for between a 15% and 35% stake.
Ehatchery is tough to beat. Founder Jeff Levy modeled his incubator after Bill Gross's idealab, the Pasadena, California based incubator.
High-Tech Partners Group
High-Tech Partners Groups acts as a combination consultant and money broker, helping an entrepreneur dissect its business plan, offer strategies and then help it find start-up capital-typlically between $200,000 and $1 Million. It charges $28,000 for the business analysis, which is based on about 62 hours of work, at $450-an-hour spread over 60 days. And it charges 3% to 6% of the companies' equity as a brokering fee for finding angel financing.
Red Hot Technology Accelerator
Evelyn Ashley offers a simple reason for starting an incubator in the office with her boutique law firm, Red How Law Group: "We had the space."
Founders of successful venture capital-backed companies usually don't end up with a controlling interest in the company.
Venture capitalists will usually focus on a liquidity event-typically a sale of the company or an IPO-to generate a return 20 times their initial investment. And don't expect them to wait 10 years to cash out. "We have a duty to our investors to give them a healthy return on their investment within a very specific time frame, usually within five years," adds Collins.
Size matters. Venture capitalists are concerned with the size of the market and the speed with which your firm can capture a significant market share.