The move is another blow to Vanguard, a 25-year-old Silicon Valley venture capital firm. Wood had been one of the firm’s three remaining partners, after Bob Ulrich decided to retire and founding partner Jack Gill moved to Maven (see our past coverage here). As we mentioned in that earlier story, Vanguard is struggling from anemic results of its most recent fund. It has been hoping possible IPOs over the next few months of two of its portfolio companies will produce results. Now, with Wood gone, this may be the fatal blow for the firm, which needs to convince investors to back it again. We have yet to talk with the firm about Wood’s departure, however, so we’ll update when we have more.
Wood’s hiring by DFJ was first reported today by VentureWire (registration required), which said Wood’s job for the next six months will be to “recruit investors interested in managing new affiliate funds in various markets and geographies.”
DFJ has been on the leading edge of a strategy to expand globally with affiliated funds (see our story on this here), where the Silicon Valley firm plays a role as investor and advisor, but where the funds themselves are managed by others and have other investors.
Possible geographic areas include Brazil, Canada, India, Israel, Korea, the U.S. Southeast and Vietnam, the report said.
Update: Dan Eilers clarifies: Wood will continue to manage exisiting investments, but indeed will not be helping raise another fund. Eilers says the firm still intends to raise another fund after the fund gets some profitable returns. One of the companies that may go public, Asmathx, is doing its roadshow now.