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Venture Buyout: the Best of Two Troubled Worlds?

Posted Sep 02, 2008 04:56pm EDT by Sarah Lacy in Software and Services, Venture Capital, M and A, IPOs, Recession
Related: ca

Back in 2004, Valley venture capitalists David Helfrich and Terry Garnett embarked on a new way to invest in high tech. They called it "venture buyout" and the idea was the carve out multi-million niches of bloated, over-consolidated corporate computing companies and re-cast them as startups-- only startups with huge revenue streams. Companies weren't buying from startups as much as they used to and too much money was in venture capital, and about this time the private equity market was heating up. But Garnett & Helfrich avoided the private equity fall by eschewing debt and making bets carefully. "Spray and pray" it's not: Its inaugural $350 million fund will only invest in about seven deals.

So far, Garnett & Helfrich has done six deals so far and combined those companies are doing about $500 million in revenue. Is fund number two on the way?

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4 Comments

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oih_2007 - Tuesday September 02, 2008 09:40PM EDT

Sarah looks cute in that dress. Sarah can be a movie star indeed if she doesn't flirt with the guests.

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you
joesphbarns - Wednesday September 03, 2008 05:02AM EDT

Almost anyone can count the seeds in a watermelon but it takes vision to count the watermelons in a seed.

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bulligity - Wednesday September 03, 2008 01:24PM EDT

Dude!! He's totally staring at Sarah's chest as he's being introduced!! What an ole' pirate!!

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valueman - Wednesday September 03, 2008 03:15PM EDT

Sarah is a hottie. No doubt.

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