SOURCE: Greenhouse Capital Partners

October 08, 2007 15:40 ET

Greenhouse Capital Partners Closes First Fund

Oversubscribed, $11 Million Seed-Stage Venture Capital Fund Is Targeting Startups in Cleantech and Other Emerging Technologies

SAUSALITO, CA--(Marketwire - October 8, 2007) - Greenhouse Capital Partners, a seed-stage venture capital firm has closed its first fund, Greenhouse Capital Partners LP, an oversubscribed $11 million fund targeting opportunities in cleantech and select other emerging technologies. Founded in January 2006, Greenhouse Capital provides strategic guidance and seed and Series A financing to companies at their earliest stages of creation.

"Greenhouse Capital Partners targets investment opportunities at the 'pre-VC' stage, where entrepreneurs face a gap in the market for raising early stage capital, a segment that is often too early for traditional institutional investors and one which requires more hands-on strategic involvement than angel money can often provide. We have experience in taking true early stage risk while providing significant strategic value for our portfolio companies -- a return to the roots of venture capital," said Peter D. Henig, managing partner of Greenhouse Capital Partners. "We provide companies not only with the early stage financing they require to accelerate technology development and time to market, but to also structurally prepare them for subsequent financing rounds. We work alongside angels, early stage investors, as well as traditional VCs, in helping create quality deal flow for the venture capital community while providing early stage investors with the investment protection and company representation to meet their needs."

Greenhouse's typical investment size ranges from $250,000 to $1 million, and the fund maintains the flexibility to offset early stage risk by participating in select later stage investment rounds. "We are a small fund by design, and believe that the economics of the venture capital industry now favor smaller funds which can generate returns for investors even at reduced exit valuations," said Henig.

Through earlier investments made by Greenhouse's general partners, the firm's previous portfolio companies include ProcessClaims (acquired by CCC Information Systems), Solaicx and MobiTV, while the current portfolio includes investments in InsideView, Linkage Biosciences, Solaicx and MeeVee. "Our investors, partners and advisors have deep experience as entrepreneurs, founders and seed-stage investors," said Henig. "To date, our portfolio prior to raising the fund garnered significant up-rounds and avoided any write-offs, including one successful liquidity event in a company we helped fund pre-business plan. We see the current fund as having the ability to extend and expand upon this track record."

Greenhouse Capital's general partners also include Michael Schwab and David Ferrara. Advisors to the firm include Jim Davis, Larry Kubal, Patrick Grady, George Hoyem and Adam Wolfensohn.

"Greenhouse correctly identified that traditional financial institutions are not organized to capitalize on seed-stage opportunities, and most larger VCs do not have the bandwidth or capital incentives to fill the fundraising gaps at this level, despite the number of compelling investment opportunities," said Larry Kubal, Partner with Labrador Ventures. "As early stage investors ourselves, and having already participated in several deals along with Pete Henig and his team, I believe Greenhouse's model has a strong chance for success as it focuses on the earliest stages of company formation, and a desire to create lasting and value-added partnerships with the entrepreneurs they support."

"Bridging the gap between angel and traditional VC support was an issue for us," said Umberto Milletti, CEO and founder of InsideView. "After significant experience with traditional VCs and bankers in the private and public markets, I am sold on the benefits of Greenhouse's approach and they have already exceeded my expectations in terms of adding value to our company." Prior to founding InsideView, Milletti was a co-founder of DigitalThink.

Greenhouse has a focus on the emerging field of cleantech, reflecting a deep knowledge and experience base in the sector. "Pete Henig, Michael Schwab and many of Greenhouse's initial investors were absolutely essential in helping us launch Solaicx and getting it to where it is today. As founders and entrepreneurs in the solar industry, we see tremendous inefficiencies in how early stage companies get funded, and a sizable opportunity for a strategic approach such as the one Greenhouse offers," said John Sedgwick, co-founder and VP of sales of Solaicx. During 2007 Solaicx closed a $27 million "up" round lead by D.E. Shaw and has been selected as one of the top private companies in America with inclusion in the Red Herring 100, Always On 100, and Going Green 100 lists. The fund is actively evaluating opportunities in areas including solar, green building technologies, and biofuels.

Greenhouse Capital is located in Sausalito, California. For more information please visit www.greenhousecapital.net

Contact Information