Update: I regret writing this article. PEHub reported that Maven has gone “kaput,” and I cited that report. But it’s not true, and it’s also not true that Maven has given up fundraising. Jennifer Gill Roberts called to tell me her firm continues to invest in companies and will have more news at the end of the quarter. PEHub based its report partially on the fact that Maven’s phone number was directed to her own personal phone, but that’s apparently because she’s looking for office space after a contract on her previous space ran out. Maven retains its office in Houston.
The merry-go-round at some of Silicon Valley’s troubled venture capital firms continues. First up, the firm started by Jack Gill, a legendary Silicon Valley venture capitalist, and his daughter, Jennifer Gill Roberts, has reportedly given up continues its fund-raising efforts.
The firm, Maven Venture Partners, had planned to focus on mobile technology investments, and was launched by Jennifer and another partner after her former firm Sevin Rosen began to go adrift (as reported, it has since fallen apart). Maven was a risky endeavor from the beginning, though, because new venture capital firms are having a tough time in this crowded market (see our coverage of the firm when it first emerged). We’ve tried to reach both Jack and Jennifer to confirm the news, but haven’t yet heard back. PE Week reported the company had gone “kaput.” [Update: Jennifer Gill Roberts has just responded in an email, saying: "We closed a modest fund, made a couple seed investments last year and will make a few more substantial investments in Q1. We’d be happy to give you a fuller update at the end of Q108."]
Marc Friend, who left Maven very early on, has since shown up at Partech International as a venture partner. As of this writing, Friend was on a trip to Boston, and couldn’t be reached.
The firm had been trying to raise a $150 million fund; we’re not certain it ever managed to do so.
Meanwhile, the firm Jack Gill had founded decades before, Vanguard, has struggled. Gill has since left, but under the helm of remaining partner Dan Eilers, Vanguard gave up trying to raise another fund until it can show some profits from its earlier investments. Eilers tells us the firm the firm may try to raise a fund if progress is made on that front.
Finally, Crescendo Ventures, another firm with its back against the wall after years of poor performance, has seen partner Jeff Tollefson leave. Whether the firm will be able to raise another fund is also open to question, though leading partner David Spreng is still holding out hope.
3 Comments
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AS said:
Matt, how about an in-depth on Worldview as well? I hear they “moved to new offices” somewhere in San Mateo, all is not well between James Wei and Mike Orsak with the latter hostile to any attempts to raise any new funds, and the firm has exited several businesses (including defeats snatched from the jaws of victory such as Mirapoint which Mike Orsak ran into the ground.)
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John S said:
Matt, Crescendo is a walking dead that will descend into its grave like Novalux. And like Novalux, it will be a slow, drawned-out death. In addition to Jeff Tollefson, 3 others on the website, Peter van Cuy Lenburg, Ian Jenks and Jason Hable, are gallery fillers. Peter is no longer active with the firm. He made only 1 investment, Verimatrix, during his tenure. Ian Jenk, who was chairman of Novalux and pulled it out of its first bankruptcy back in 2002, is no longer associated with any of his investments. Those board seats went to Cantwell and Borchers. Jason Hable, brother-in-law of Spreng, is now working at one of the portfolio companies. Its been 8 years since Crescendo raised its last fund. With no management fee, it can not pay salaries or rent. Notice that Crescendo closed its Minneapolis and London offices, and only kept its Palo Alto office. David Spreng deperately wants to raise another fund. However, with a dismal track record and high people churn, it is not likely that LPs will invest again. Spreng holds out his hopes on Compellent, the Oct 2007 IPO, to turn around Crescendo’s fortune with LPs. However, given that the stock has dropped 65% since IPO, and 3 months to go in a bear market before distribution to LPs, Compellent may not be the savior that he hopes. Futhermore, once LPs learn that Jeff Hinck, ex-Crescendo, led Compellent in Series A and Spreng had very minimal involvement, Compellent may not matter anyways. At this point, Crescendo has one foot in its grave already.
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Jason Fackler said:
Don’t count Jack or Jennifer out just yet! I’ve had the privelege to speak with both on several occasions and they both impress me. Wait for the market/economy to turn around in late ‘08 and then revisit what each firm has done at that point.
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[...] a billion dollars, so investors in the company at this valuation have lost a lot of money. This is more unfortunate news for Silicon Valley venture capital firm Crescendo Ventures, one of the few investors to back the [...]