DFJ's US Affiliates Progress On Fund-Raising

By: Laura Kreutzer

Jul. 4, 2008

Draper Fisher Jurvetson has been busy beefing up its network of overseas partners, but the firm's U.S. network is also busy on the fund-raising front.

At least six U.S. firms in DFJ's global network are in the market with new funds, including four regionally focused funds and two industry-focused funds. Together, the six firms seek a total of $885 million, according to marketing documents obtained from a prospective investor by VentureWire. (VentureWire reported on DFJ's overseas ambitions in yesterday's edition.)

Managing Partner Don Wood declined to discuss the Menlo Park, Calif.-based firm's fund-raising activities, citing Securities and Exchange Commission regulations.

One of the newest to hit the market is Chicago-based DFJ Portage Ventures, which seeks $100 million for its second fund focused on deals in the Midwest, according to the materials. The firm, which became a partner in 2001, eyes investments in seed, early-stage and expansion-stage deals.

DFJ Portage raised a $13 million fund in 2004, although it also manages several pools of capital that it raised before joining the DFJ network. Companies in its portfolio include Aleri Inc., a Chicago database systems company, and Thinkvine Corp., a Cincinnati company that produces marketing software and consulting services for consumer product and service companies.

Meanwhile, Houston-based DFJ Mercury has collected around $20 million toward the $75 million that it seeks for DFJ Mercury Fund II LP, according to an SEC filing. The first closing is roughly equal to the $20 million that DFJ Mercury raised for its debut effort in 2005.

DFJ Mercury invests as little as $100,000 at a time in seed and early-stage rounds with a focus on Texas companies. Its team has backed companies including ActaCell Inc., an Austin-based producer of next-generation lithium ion batteries, and Glycos Biotechnologies Inc., a Houston-based company that converts waste streams into high-value chemicals.

DFJ Gotham Ventures and DFJ Frontier, meanwhile, have rounded up capital for funds focused on the East Coast and West Coast, respectively. DFJ Gotham II LP, which has a $125 million target, has held at least two closings, according to the marketing materials, although the materials did not specify the amount. DFJ Frontier has closed on at least $55.2 million of the $80 million that it seeks for DFJ Frontier II LP, according to an SEC filing. Limited partners in the latter fund include Golden State Investment Fund and Oregon Investment Fund, according to the filing.

In addition to its regionally focused funds, DFJ Element, which focuses on global investments in clean technology, has raised $270 million of the $400 million that it seeks for its sophomore fund-raising effort, VentureWire previously reported.

Meanwhile, DFJ InCube Ventures has collected $60 million of the $125 million that it aims to raise for a debut fund focused on investments in medical devices, drug-device combinations, research tools and emerging medical technologies.