The firm has been recognized for its commitment to open source and is noted for creating the first equal ownership and compensation structure for its partners. In 2007, London-based Benchmark Europe became an independent firm, named Balderton Capital. The firm's initial investments typically sit in the $3 million to $5 million range, and over the lifetime of a relationship the firm will often invest $5 million to $15 million in a portfolio company.īenchmark Capital was founded in 1995 and is based in Menlo Park, California with an additional office in Herzliya Pituach, Israel. There will be no change in the Israeli team’s name or organization, though Benchmark’s Harvey said the long-term goal is for that team to become an independent brand too.Benchmark Capital is a venture capital firm specializing in early stage investments. MySQL is an example of a company where both sides invested in the same company. as a “most favored nation” when its companies seek to raise money in the U.S. Maloney said Balderton will treat Benchmark U.S. The only difference is the change in carry.Īnother benefit is that Balderton can now encourage the entrepreneurs it backs to seek capital from Benchmark in the U.S., without those entrepreneurs getting concerned about giving too much of a stake to a single fund. Barry Maloney, general partner of Balderton, tells VentureBeat that the partners on both sides have invested in each other’s funds. Balderton doesn’t even have a Web site yet.īalterton has about $1.5 billion under management, and has invested in more than 70 companies, which also include Bebo, Betfair, Alphyra and Setanta. That fund will be called Balderton I, as of today. That carry diminished with Benchmark Europe’s second fund, and has been eradicated entirely for Benchmark Europe’s $500 million third fund raised in Dec. partners enjoyed significant ownership of “carry,” or profits, in Benchmark Europe’s funds. had the reputation that could help Benchmark Europe access deals. team had helped the European team firm with brand affiliation. In 2000, to get Benchmark Europe started, the U.S. Local managers with autonomy are more efficient and make better decisions, Harvey said. Kevin Harvey, of Benchmark here in Menlo Park, Calif., said the intent from the beginning was that Benchmark Europe would have local autonomy, and it has been run that way. Indeed, DFJ saw serious defections in China two years ago.īenchmark U.S., which has always had an equal partner structure internally, compared to most firms where there is significant hierarchy. DFJ, Kleiner Perkins, Sequoia Capital and others have all expanded internationally - and will have to deal with the same challenge of managing relationships with their foreign counterparts. The move is also notable because it shows how the venture model continues to tend toward local manager control. MySQL, another investment, plans also to go public soon. Benchmark Europe raised a $500 million fund in December, is one of the largest VC firms on the continent and is starting to see its first returns: One of its investments, Yingli Solar, filed to go public yesterday on the NYSE. firm has become successful enough to do business under its own name. The move is significant because it shows the European outpost of the U.S.
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