Future of FA Technology Ventures?

A reader wrote in earlier this week to ask the fate of FA Technology Ventures, given that the FA (First Albany) just agreed to sell a majority stake to private equity firm MatlinPatterson. The answer is that FATV is likely to be just fine, with plans to begin raising its second fund later this year.

The firm does receive some LP capital from First Albany, but the branding was more due to some of its founders’ past affiliation with the bank, rather than because of any sort of GP ownership issues. In fact, First Albany isn’t even the largest LP on FATV’s debut $100 million fund. That honor goes to the New York Common Retirement Fund.

The only outstanding question is whether FATV will keep its name. First Albany itself is in search of a new moniker, so FATV would make even less sense than it does now. On the other hand, existing VC brands have value separate from their namesakes. For example, most of us are familiar with TA Associates. Few of us, however, know that the TA originally stood for Tucker Anthony (I didn’t until yesterday)…