High-Tech Tagged For Bulk Of Planned $400M Fund - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

High-Tech Tagged For Bulk Of Planned $400M Fund

The head of Batterson Venture Partners plans to raise a $400 million private equity fund, with 75% of investment dedicated to high-tech companies.

Some folks believe that when the Internet bubble burst, the resulting splatter extinguished venture capitalists' fire in the belly. Len Batterson isn't one of those folks. The head of Batterson Venture Partners in Chicago plans to raise a $400 million private equity fund focused on institutional investors, with 75% of investment dedicated to high-tech companies. Batterson wants to make about 30 to 35 investments during the life of the fund and has already recruited an impressive roster of backers. Notables include James Kimsey, AOL founder; Casey Cowell, former U.S. Robotics chairman; John Walter, former head of AT&T; and Alan Schriesheim, former head of Argonne National Laboratory.

It's a fairly ambitious goal within a regional context. During the first three quarters of 2001, Illinois venture-capital funds raised $797 million, with the average fund size weighing in at $72.5 million, according to the National Venture Capital Association. Nationwide, venture-capital funds are a shadow of their year-2000 selves. The association estimates the 2001 total will be between $38 billion and $42 billion, compared with last year's $107 billion. But 2001 isn't quite so dismal when viewed from another perspective: The venture-capital investment total this year will rank as the third best year in the industry's history, according to the association.

"Four hundred million dollars is a good-sized fund for today's environment," says Jeanne Metzger, the association's VP of business development. "But it doesn't mean he can't do it. VCs venture capitalists with experience are still able to raise money." Other venture-capital watchers agree. "It sounds ambitious given the recent history we've just been through, but I don't think it will be ambitious in the next two or three years," says Bill Hutchison, Andersen's global director of consulting for the technology industry. Moore's Law will continue to double performance levels, with "boom times" in 2003 or 2004 driven by the next generation of products and services, according to Hutchison. "It's aggressive, but I think it's a good bet."

Batterson believes he has set a very attainable goal. Batterson Venture Partners has had about 40 meetings with potential investors during the past couple months, with encouraging results. Says Batterson, "The good news is, there's a lot of dough out there."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Slideshows
Reflections on Tech in 2019
James M. Connolly, Editorial Director, InformationWeek and Network Computing,  12/9/2019
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll