Jerusalem Venture Partners (JVP), the international communications venture capital firm, has achieved a first close of its fourth fund JVPIV with $350 million in commitments. The new fund is targeting early stage communications and Internet infrastructure companies.
JVP IV has attracted both new and original investors and its limited partners include a global network of strategic partners, institutional investors and financial institutions such as France Telecom, Infineon, Boeing, Nortel Networks, Reuters, Flag Venture Partners, Merrill Lynch Ventures and AXA.
With the new fund, the firm has expanded its worldwide network of strategic and private equity investors to include such funds as Oak Investment Partners, Battery Ventures, Worldview Technology Partners, Lucent Venture Partners and European investors including Apax Partners and 3i.
JVP IV and co-investors have jointly invested $47 million in the following companies: Quarry Technologies, a supplier of intelligent IP services equipment; Magnifire, a developer of a dynamic content routing system for the Internet; and XMPie, a cross media personalisation software solution. The fund will also be announcing a further three deals that have not yet been named.
These companies should benefit from JVP’s proven track record for developing international markets and operations for Israeli-based companies, in particular in the optical networking sector. While venture capital investing in this sector has slowed significantly in the first half of 2001, JVP has maintained a steady investment pace, leading larger rounds of funding to sustain and build its portfolio companies. This has resulted in a 68 per cent increase in capital invested in the first half of 2001 over the same period last year.
Erel Margalit, JVP founder and managing partner, stresses that to survive in today’s global economy, young companies need two critical elements access to multiple markets in the US, Europe and East Asia and enough capital to outlast the slump in the equity markets.
He said: “Through JVP IV, we’re creating a new model for international venture capital investing. This model utilises a cohesive team approach to investing that leverages our past experience of growing international markets for Israeli companies, partnering with local investors to enable larger rounds of financing, and effectively supporting our entrepreneurs across three continents.”
Founded in 1993 and with $600 million under management, JVP has committed to almost 30 companies in the areas of optical networking, data and wireless communications,E-Business infrastructure and Internet service infrastructure.