Millennium Technology Value Partners says it has had four portfolio company exits in the first half of 2013. included is the sale of Epocrates to athenahealth; the acquisition of NetSpend by TSYS; the recapitalization of Datapipe; and the acquisition of Tumblr by Yahoo, which is pending. The firm also has six companies in registration.
Millennium Technology Value Partners Reports Mid-Year Highlights:
· Four Portfolio Company Sales in First Half of 2013
· Six Initial Public Offerings on File
Millennium also sees active IPO and M&A markets ahead in second half of 2013
Secondary market increasingly important to venture ecosystem
New York, NY, June 26, 2013 – Millennium Technology Value Partners, a pioneer in alternative liquidity solutions and an investor in many of the world’s leading private technology companies, reported an active first half of 2013, including four successful portfolio company sales representing $3.1 billion in total enterprise value:
· The sale of Epocrates to athenahealth;
· The acquisition of NetSpend by TSYS;
· The majority recapitalization of Datapipe; and
· The acquisition of Tumblr by Yahoo (pending).
“The acquisitions of four of our portfolio companies in the first half of this year speaks to growing strategic and private equity interest in best of breed technology companies,” saidSam Schwerin, Millennium Managing Partner. “This also illustrates the success of Millennium’s approach of partnering with best-of-breed companies and, as a Trusted Liquidity Partner, continuing to support these great companies with additional capital as they grow.”
Millennium also has investments in six companies that have filed for an IPO in 2013. In total, one-third of the companies in which Millennium has a substantial investment have either been acquired or have entered into the IPO process since January 1, 2013. Over the last three years, Millennium’s portfolio companies have achieved 17 IPOs and M&A events.
“The exit activity for our portfolio has been quite significant, especially relative to the size of our firm,” added Schwerin. “We believe we will continue to see strong exit opportunities – either through the public markets or through strategic acquisitions – for technology companies in those sectors witnessing explosive growth and fundamental change.”
Millennium Managing Partner Dan Burstein noted, “Our firm has become known for our pioneering investments in high-profile companies like Facebook, Zappos, Twitter, and Tumblr. We continue to invest in very visible private companies, such as Alibaba.com, the leading e-commerce company in China. At the same time, we’re investing in fast-growing leadership companies that are perhaps not yet as visible, but also likely to lead paradigm shifts in their sectors – companies such as Lookout, Good Technology, Chegg, Inspirato, Janrain, and others.”
Secondary Liquidity a Valuable Tool
Millennium sees continued active use of secondary liquidity by the top private companies. More than $17 billion was invested in venture-backed companies in a secondary manner during 2011 and 2012. Observes Schwerin, “The top private venture-backed companies view the secondary market as a valuable tool to achieve fundamental management and shareholder objectives over time, which include retaining key employees and sustaining rapid growth.” He added, “While the IPO market may be open for some, many companies appreciate the benefits of staying private longer, as they perfect their business strategies and grow. Secondary is key to that process.”
About Millennium Technology Value Partners
Over the last decade, Millennium has been a pioneer, innovator, and leader in developing institutional-quality alternative liquidity programs for companies and shareholders in the venture capital ecosystem, partnering with the world’s leading technology companies to design investment structures that foster long-term growth. In addition to its leadership in secondary investing, Millennium actively plays the role of “Lifecycle Capital Partner” to growing companies, providing a flexible mix of capital solutions that help to drive growth throughout a company’s entire lifecycle.
The firm has made investments into 67 leading technology companies, including Facebook (FB), Tumblr (YHOO), Twitter, Zappos (AMZN), Tellme (MSFT), Epocrates (ATHN), Chegg, Lookout, Good Technology, BeachMint, HauteLook (JWN), GreenDot (GDOT), NetSpend (TSS), ETF Securities, Tremor, LegalZoom, Wayport (T), RigNet (RNET), iPass (IPAS), Airvana (acquired), HootSuite, ArcSight (HPQ), ID Analytics (LOCK), Datapipe (acquired), PlaySpan (V), Alibaba.com, and many others. The firm’s portfolio companies have achieved 31 IPO and M&A events over the last 11 years.
Based in New York City, Millennium is led by its founding partners Sam Schwerin and Dan Burstein. For more information, visit: www.MTVLP.com.