People 5-12-03

Almost three years after joining Venrock Associates as a general partner, Tom Frederick has departed. Frederick came to Venrock in July 2000 when the firm raised its $650 million third fund. At the time, it added four new partners: Michael Brooks, Joseph Casey, Eric Copeland, and Frederick.

Prior to joining the early-stage venture firm, Frederick led the global e-business and advanced technology consulting practices at Arthur Andersen.

Frederick represented Venrock on the boards of six of its portfolio companies: Appliant, an Austin, Texas-based Web performance management software company that has since been bought by Tonic Software Inc.; EC Outlook, a Dublin, Ohio-based B2B software company; Keyotee Inc., an Austin, Texas-based fabless semiconductor company; NetBrowser Communications, a Pleasanton, Calif.-based building management system; PerformanceRetail, an Austin, Texas-based online retail operation support company; and Realeum Inc. a McLean, Va.-based software company that manages apartments.

Keyotee was Frederickis most recent responsibility, which was notable as the furthest company from Frederickis core area of expertise, and another addition to the board seats that had Frederick flying between Virginia, Texas and California.

It is speculated that Fredrick was let go as Venrock is not pleased with its participation in the Web/Internet arena, which Frederick was a leading proponent of. Venrockis West Coast office, where Frederick worked, is notable for the heavy board load each of its partners has to shoulder. Each typically sits on between seven to nine boards at once. However, Frederick only sat on six boards, but they were the most geographically varied. Commenting on his departure, Frederick says: iI just completed my transition and have begun exploring other opportunities. I may stay in private equity or go back to running companies.i

As for Venrock, the firm chugs along, having made eight investments this calendar year, two of which are follow-on rounds. Venrock, originallfounded as the investment arm of the Rockefeller family, has in recent years expanded its fund sources to include institutional partners.

Charles River Ventures recently informed limited partners that Ted Dintersmith will soon escape New England for the warmer climates of South Carolina. Dintersmith has been a general partner with Waltham, Mass.-based CRV since February 1996, and has served as its unofficial spokesman in good times and bad.

The move is not intended as a departure from CRV, as he will continue making new investments and maintaining his current portfolio company board seats. Just two months ago, for example, Dintersmith led a Series A round for Charlotte-based software developer Venetica Inc.

“If you know Ted, youill know that this has nothing to do with dissatisfaction with CRV or money or anything like that,” says an LP source familiar with the situation. “Heis 50, but he has two young kids, and really has decided to make a bit of a lifestyle change by moving to Charleston. Who can blame him?”

This is actually a move back home of sorts for Dintersmith and his wife, both of whom grew up in Virginia. He later attended The College of William and Mary, and currently sits on the schoolis endowment board.

Sources say itis highly unlikely that Dintersmith will be listed as a general partner on CRVis twelfth fund (slated to hit LP desks in late 2004), although he will maintain some sort of undetermined role with the firm.

Dintersmith has declined to publicly comment on his decision.

Arthur Rock, principal of venture capital firm Arthur Rock & Co., was reelected to the Nasdaq board of directors.

Wayne Cantwell has joined Crescendo Venture Partners as a venture partner focused on the semiconductor market. He most recently served as president and chief executive of inSilicon Corp., which was acquired last September by Synopsys Inc. (Nasdaq: SNPS).

Pascal Levensohn, founder and managing director of Levensohn Venture Partners, has joined the board of directors at Vertical Networks Inc., a Sunnyvale, Calif.-based developer of integrated computer platforms.

Dirk Stuurop has joined Banc of America Securities as a senior executive director in its financial institutions group. He most recently served as founder of Stuurop & Co., a consultancy firm specializing in financial services advice and venture capital.

Thomas Kellerman has joined the law firm of Morgan Lewis and will become managing partner of its Palo Alto, Calif. office. He was formerly the managing partner of Brobeck, Phleger & Harrisonis Palo Alto office and the former managing partner of the three-office European joint venture of Brobeck Hale and Dorr. Kellermanis practice has focused on emerging growth company representations and securities matters, including public and private financings, mergers and acquisitions and corporate governance.