Introducing VC 2.0
Even as many venture capitalists shy away from start-ups, a handful of dissidents from bigger investment houses have started new funds to fill the capital gap--and to pursue the home-run returns that made VCs famous in the first place. Two of the upstarts:
Leapfrog Ventures
www.leapfrogventures.com
Menlo Park, Calif.
Fund size: Two $100 million funds
Current portfolio: 10 companies
Portfolio makeup: Mostly technology companies that provide a range of tools from enterprise software to long-range wireless networking
Quote: "Our challenge is to give money to entrepreneurs without disenfranchising them," says managing partner Peter Rip. "When an entrepreneur starts acting like an employee, we're screwed."
Union Square Ventures
www.unionsquareventures.com
New York City
Fund size: $125 million
Current portfolio: Three companies
Portfolio makeup: Includes a search engine for job listings, a company that creates online advertising, and a provider of financial information
Quote: "I think every VC enjoys participating in helping build disruptive companies," says partner Brad Burnham. "I'm excited to be in the next wave of capital that will get us back to the kinds of 10x returns we expect."
