The DFJ Global Network Partner Funds
DFJ Global Network Partner Funds
The DFJ Global Network of Partner Funds (“the DFJ Network”) is a unique global venture capital model providing global reach through local presence. The DFJ Network has grown to encompass over 140 venture capital professionals, in more than 30 cities throughout the US, Asia (including China and India), Europe, Israel, South America, and Russia, with more than 600 portfolio companies funded and over $6 billion of capital under management. The DFJ Network invests in virtually every major technology sector including information technology, cleantech, life sciences, as well as emerging technologies such as nanotechnology. Together, DFJ and the DFJ Network have been the most active investors in the world in both 2006 and 2007. The DFJ Network has produced such notable, industry changing winners as Athenahealth (ATHN), Baidu (BIDU), Skype (acquired by eBay), DivX (DIVX), Mobile 365 (acquired by Sybase), Massive (acquired by Microsoft), EnerNOC (ENOC), Feedburner (acquired by Google), Mozy (acquired by EMC), Myfamily.com (Acquired by Spectrum Equity Investors), Overture (acquired by Yahoo), Parametric (PMTC), TicketsNow (acquired by TicketMaster), and buy.at (acquired by AOL).
Local Presence, Global Reach
Early stage venture capital has traditionally been a local business, driven by local relationships with entrepreneurs, venture investors, professional service providers, universities, and corporations. Yet, as information has become more accessible, the industry has seen the rise of great companies in locations outside the traditional hubs of technology. Consequently, the DFJ Network was created as a way of building scale without destroying the local model that is so integral to the success of the venture industry. Innovative international companies such as DFJ Network successes Baidu (Beijing), Skype (Estonia) and buy.at (United Kingdom) have demonstrated the need to expand venture opportunities globally and the DFJ Network’s ability to do so and capitalize on it.
A Federation of Independent Funds
The DFJ Network is a federation of independent funds. Each Partner Fund governs itself and has its own limited partners. Economic incentives and a shared brand (DFJ) align the interests of the DFJ Network. The management company of DFJ maintains a minority interest in the general partnership of each Partner Fund. The DFJ Network has a shared pool of financial carry in which each Network Partner participates and is rewarded by the success of any Network Partner Fund.
As of June 2008, there are 16 active Partner Funds and several other fully-committed Partner Funds in the DFJ Network spanning the globe. Collectively, the Partner Funds in the DFJ Network invest in regions covering 70% of the world’s GDP. Through this remarkable system, the DFJ Network offers better support for its entrepreneurs, better due diligence options for its Network Partners, and ultimately better returns for its LPs.
Top Tier Branding
DFJ has become synonymous with global venture capital investing. The firm’s brand is among the most recognized and respected venture capital brands worldwide. Having seeded companies that have become multi-billion dollar successes on three different continents, DFJ has caught the attention of the press, entrepreneurs, and the public worldwide and been a pioneer in the growth of global venture capital and entrepreneurship. DFJ is regularly covered in the media as a leading venture capital firm for early stage companies. Perhaps the most powerful and unique coverage in the media focuses on the DFJ Network, where DFJ and the DFJ Network are recognized as exceptional in the industry. Leading television, radio, blog, and print media (e.g., The Wall Street Journal, Forbes, Bloomberg, The New York Times, The Financial Times, CNN, CNBC, BBC, NHK Japan, Always-On Network, Business 2.0, Capital, Ha’Aretz, etc.) have covered DFJ and the DFJ Network’s innovative model of developing venture capital and entrepreneurship globally.
Extraordinary Deal Flow
The DFJ Network’s deal flow, which consists of tens of thousands of business plans annually, continues to expand in size, scope, and quality. This is driven by a number of factors, including brand, exposure, creativity of the Network Partners, sector breadth, and more. The global reach of the DFJ Network further enhances its deal flow. This enhanced deal flow is a critical factor in providing Network Partners with ongoing opportunities to realize superior returns for their investors.
A Community of Leaders
The DFJ Network works to surface investment opportunities that might not otherwise be identified, and enables the sharing of information and resources around the world to vet and develop these opportunities. Partner Funds and many of their LPs and portfolio companies are brought together several times each year to build direct personal relationships through events such as DFJ’s Annual Summits, “Schmoozefest” (a prominent Silicon Valley networking event), University business plan competitions, and other seminars and “think tank” events. These forums have helped to build business relationships, which in turn have led to intelligence sharing and deal syndication.
A Global Rolodex
Much of the value venture capitalists bring to a portfolio company is through their contacts, including potential customers, investors, strategic partners, executive talent, and the media. Each of these facets of “Rolodex Power” is leveraged across the DFJ Network for the benefit of portfolio companies. With each investment, the Network Partners benefit from the “collective intelligence” of the DFJ Network by being able to provide portfolio companies with introductions and competitive advantages that would not otherwise exist. The result is a strong synergy that helps to solve problems, structure deals, and serve as a powerful, distributed business development network. The venture capital industry relies heavily on intellectual and social capital to stay competitive. The DFJ Network increases its power as the collective intelligence of its portfolio of Partner Funds, technology companies, investors, and corporate allies expand.
Syndication that Works
By creating a family of venture capital funds, the DFJ Network provides each of its members with immediate access to a range of potential syndication partners. If the lead Network Partner is looking to bring in a syndication partner with a specific geographic, sector, or stage focus, it can often find that partner within the DFJ Network. Having easy access to trusted syndication partners is a major advantage when trying to pursue and execute on promising ventures quickly. To date, the DFJ Network has co-invested more than 120 times.
