I’ve talked to people at three companies lately who said they either avoided or feared outside investors, although one CEO — 20-year-old Seth Priebatsch of Scvngr, a mobile game company — did end up taking around $1 million from Highland Capital and says he’s glad he did, because the connections and advice provided by Highland have been invaluable.

Another of the companies — a game design company in San Francisco — was just incorporated, and its team is just starting to think about outside funding, but the third — Groundspeak in Seattle, whose geocaching sport has between 2 million and 3 million players, around the world — is about 10 years old and growing and has repeatedly turned away outside investment.

NEW YORK (Reuters) – AOL has struck deals to acquire two small start-up companies focused on local online media, Patch Media Corp and Going Inc, ahead of its separation from Time Warner Inc (TWX.N). AOL’s new chief executive, Tim Armstrong, was an early investor in Patch Media, which was founded in 2007 and concentrates on [...]

iZumi Bio Inc., a South San Francisco-based regenerative medicine company that uses induced pluripotent stem (iPS) cells, has raised $20 million in VC funding since its 2007 inception. Backers include Highland Capital Partners and Kleiner Perkins Caufield & Byers.   The funding amount was disclosed in a USA Today article, about how the company has [...]

Highland Capital Partners has begun raising its eighth venture fund, with a target of around $400 million. That’s pretty large for a typical VC fund, but small for a firm whose past two vehicles came in at around $800 million (it also raised $300m for a consumer-focused fund). So, what gives?

The basic answer seems to be that Highland might be putting common sense above fee-mongering. I know, they might get kicked out of the club (at which point they can just retreat to Wyc’s Lexus Club in the Boston Garden).

Here’s what I mean: Both fund-raising and deal-making volumes are deflated right now, due to things like LP liquidity constraints and decreased valuations. So Highland will raise less now and, if the environment improves, go back out for a larger fund sooner than it normally would. If times stay tough, then it’s sized appropriately for a normal investment cycle.

2X Consumer Products Growth Partners has raised $20 million for a growth capital fund focused on consumer products, peHUB has learned.

“We’re thrilled, and in this market, doubly thrilled,” says firm founder and managing partner Andrew Whitman.

The firm’s first fund will write checks for $1 million to $5 million in first commitments in branded consumer product companies that may later take an additional $5 million follow-on investment. “We expect that we’re going to be investing significantly more via co-invest from LPs,” Whitman says.

Last week, I posed the following quiz question: Can you name the venture capital firms that just pumped more than $40 million into Cash4Gold, the company whose name – and ubiquitous television commercials – basically say it all. Your hint was to think East Coast, although not so far south as Cash4Gold’s Florida headquarters.

I’ve received over 80 replies so far, including a small handful that answered correctly. So it’s time to spill the beans: The investors are General Catalyst Partners and Highland Capital Partners.

If you’re like me, your initial reaction is to spit out your mouthful of Dunkin Donuts iced coffee and then wipe off your Kevin Garnett bobble-head. Ok, maybe that’s a bit too specific. Let’s just assume you’ve having a good chuckle. Still going? Think of something sad, so that we can collectively continue…

For those who don’t watch too much television (here’s a test: do you know what a ShamWow is?), Cash4Gold is not some sort of national pawnshop chain. Instead, it’s better described as a C2B precious metals refiner. It pays consumers to send it jewelry

Blue Tulip Inc., a New York-based retailer of personalized gifts, has filed for Chapter 11 bankruptcy protection. It lists $7.3 million in debt, and plans to hold store liquidation sales at its 24 locations later this month. Blue Tulip had raised over $13 million in VC funding, and lists Highland Capital Partners as holding a 44% ownership stake (it invested out of HCP VI and Highland Consumer Fund). The company’s website is no longer working.

Generation Health Inc., an Upper Saddle River, N.J.-based startup focused on genetic testing benefit management, has raised nearly $5 million in Series A funding. Backers include Highland Capital Partners, Correlagen Diagnostics, D2Hawkeye and company management.

Highland Capital Partners has promoted Dr. Bijan Salehizadeh has to general partner. He had joined the firm’s Menlo Park office in 2004 as a senior associate, and focuses on early-stage medical device and biotech opportunities. Highland also has added vascular biologist Dr. Elazer Edelman as a senior advisor.

Earlier today, I reported that Highland Capital Partners had quietly invested $20 million into the $17.1 billion leveraged buyout of Harrah’s Entertainment. My thesis was that this was a very strange commitment for an early/growth-stage venture capital firm like Highland, and that none of the available explanations seemed to hold justifiable water.

Highland still hasn’t called in to give its side, but a bunch of you have emailed to remind me that Battery Ventures participated on the $17.6 billion buyout of Freescale Semiconductor. Battery also got involved in the $4.3 billion buyout of travel reservations company Sabre Holdings. And then there was Spark Capital partnering with hedge fund Jana Partners on a bid for CNET (Velocity Interactive Group also participated, but not