Forum Archive Index - December 1999
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[sharechat] Re: IT Capital - copy from other newsgroup - answer to question
28.12.1999 - By YOKE HAR LEE Listed venture firm IT
Capital will have $20 million available to scout for
innovative
technologies in Australia and New Zealand after a
major
transaction clinched with two US venture partners.
Cross Atlantic Capital Partners and Snider Capital
have bought
shares in IT Capital amounting to $8 million. On top
of that,
they have set aside $12 million to co-invest in deals
with IT
Capital.
Jeff Dittus, chief executive officer of IT Capital,
said that one of
the first co-investments would be in an interactive
sports
product.
"What we have been consciously doing is to find
partners that
will invest in IT Capital so that they get some
liquidity in their
co-investments with us. They will also co-invest in
deals where
they can really help the company."
Cross Atlantic is a venture capital firm that has
invested in
success stories such as Novell (a networking
technology
company), QVC (a home shopping company) and the
Internet
Capital Group, one of the high-flying initial public
offerings in
the US last year.
The investors in Cross Atlantic include Safeguard
Scientifics,
the Pennsylvania Public School Employees' Retirement
System and Bank of America.
Snider Capital is a new venture capital company which
invests
in internet-based information technologies. The Snider
family
have owned and operated radio and television stations,
including the largest sports satellite broadcasting
network in the
US. They also own professional hockey and basketball
franchises, among others.
The Snider family have interests in Comcast Spectator,
one of
the largest cable companies in the US.
On what attracted the two US venture capital companies
to
New Zealand, Mr Dittus said: "They are betting on the
fact
that the Australasian region is short of venture
capital but long
on innovation. And they are using IT Capital as a way
to make
venture investments in this part of the world."
He added that the co-investment structure was a
powerful
one, enabling IT Capital to do larger transactions and
to create
more capital when the company made its exit from
investments.
He expected more money would be made available by the
co-investors and others.
"My sense is that the money will grow as we show some
success. It [co-investment] is a way for the company
to raise
$20 million but not have the dilution associated with
it."
Since IT Capital's transformation over a year ago, it
has raised
$20 million from various sources directly. By January
15, it will
have about $12 million left after making its
acquisitions.
Its present investments are in Exo-Net, an e-commerce
start-up company founded by Maurice Bryham, formerly
of PC
Direct; 100 per cent in Terabyte, a web design and
multimedia
company (if shareholders approve the deal); and in US
music
portal Emusic, after its investment in tunes.com was
sold in
exchange for shares.
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