Menlo Park, CA – August 14, 2000 –Redpoint Ventures, a leading venture capital firm located in Silicon Valley and Los Angeles, today announced it has raised $1.25 billion for its new Redpoint II fund. With this fund, Redpoint will continue its focus on investing in platform companies that will form the foundation of the next generation broadband Internet.
“In an environment where institutional investors are more conservative, Redpoint has demonstrated a visionary, and long-term strategy and gained our utmost confidence,” said Fred Giuffrida of Horsley Bridge Partners (San Francisco). “The momentum of Redpoint’s portfolio and the track record of its partners prove that Redpoint is one of the leading venture firms today, shaping the future of the Internet and broadband technology.”
Redpoint was founded as a new class of venture capital firm that incorporates the dramatically changed realities of an Internet-driven marketplace in its fundamental investment strategy. Redpoint's partners -- all peers who share a common vision of the future -- are particularly focused on platform investments that will generate essential broadband and Internet technology in the very near future. Additionally, the partnership works to create a "network effect," much as the Internet has done, by selecting complementary investments and encouraging cross-fertilization among its portfolio companies. This network effect assures that not only can the successes of any one company benefit the others, but that the whole is greater than the sum of the parts. Redpoint's team-oriented approach to supporting its portfolio companies adds to this network effect.
“Redpoint provides us with a marquee network of resources and experience,” said Richard N. Nottenburg, president and CEO of Multilink Technology Corporation (Somerset, NJ).“The Redpoint partners work hard to deliver the ‘network effect’ to their companies. This provides value on multiple levels to its portfolio companies and has certainly been a substantial part of our success.”
To date, Redpoint has invested in 38 companies. Of these, approximately 60% are infrastructure and services companies. The remaining investments are divided between media and content, business Internet, and companies building next generation consumer Internet platforms.
“Redpoint was founded to take the best of the past in venture capital and combine it with a new structure and viewpoint for the future,” said Geoff Yang, a founding partner of Redpoint. “We believe that real innovation comes from companies that push the envelope of technology and market paradigms. At the same time, successful companies need to understand and focus on fundamentals in order to succeed.”
Redpoint I portfolio companies include*:
*Editor’s Note: Several company names have not been included on this list because Redpoint’s investment has not been publicly disclosed.
“Our focus with Redpoint II is to continue to invest in industry leaders which will take the Internet to the next level and continue to build on the track record investors have come to expect from our team,” said Allen Beasley, Redpoint’s newest partner. Beasley joins Redpoint founding partners Jeff Brody, Tom Dyal, Tim Haley, Brad Jones, John Walecka, and Geoff Yang. During 1999, previous investments of the Redpoint partners completed 25 IPOs and acquisitions, and 14 have completed IPOs or been acquired in 2000 (to date).
Funds for Redpoint II will begin being invested in the fourth quarter of this year.
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