Industry Ventures announced this month that it completed its purchase of the venture portfolio of Infospace. Meanwhile, New York-based W Capital Partners closed on its 12th portfolio of assets from an unnamed corporate seller.
The deals are part of a growing segment of the secondary market: firms acquiring direct venture assets.
Industry Ventures reached its agreement to purchase the venture portfolio of Infospace in July, but completed its ownership transfer this month. Companies in the portfolio include Mendona Heights, Minn.-based Web broadcasting service provider Internet Broadcasting Systems and San Francisco-based webcast and multimedia provider ON24.
There has been one recent exit: Redmond, Wash.-based Rendition Networks was bought by Sunnyvale, Calif.-based IT automation software provider Opsware (NASDAQ: OPSW) in December for $33 million. Rendition raised $46 million in venture funding from Infospace and other investors.
W Capital did not disclose the seller, but the firm said that it was a corporate group still maintaining strategic investments.
David Wacther, managing director with W Capital Group, says the transaction was for more than a handful of investments from a corporate investor. Wacther also says that sellers are no longer simply dashing for exits out of desperation. “The early corporate sellers were distressed and selling entire portfolios,” he says. “Corporations are now looking to monetize non-strategic investments and maintain long-term holds.”