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MentorTech Holds First Close

MentorTech Ventures has held a $16 million first close for its second fund, which is targeting a total of $20 million. The Philadelphia-based firm invests in early-stage IT, e-commerce and medical technology companies spinning out of the University of Pennsylvania, or founded by students and alumni. It is run by former Wharton School faculty member Michael Aronson, and operates a business incubator on U Penn's campus.

 

Fund II will follow an investment strategy similar to that of Fund I, which closed on $11.7 million in 2005. Its portfolio included Diapers.com, NeatReceipts and Yodle.  As of December 31, 2007, the firm says that Fund I had generated a gross IRR of 53.6% and a 1.5x multiple of cost.  30% of committed capital has been returned to investors from a yet unannounced exit. Portfolio companies of Fund I have raised more than $60 million in additional investments, and collectively project revenue in excess of $100 million in 2008.