SOURCE: Grotech Ventures

venture capital, dc, SaaS

September 29, 2010 08:00 ET

Grotech Sells Stake in Fieldglass to Madison Dearborn Partners

Deal Is Firm's 3rd Exit of 2010

VIENNA, VA--(Marketwire - September 29, 2010) -  Grotech Ventures, a leading early investor in high-potential technology companies and one of the longest-established firms in the venture industry, announced today that Madison Dearborn Partners has bought a majority stake in Chicago-based portfolio company Fieldglass, Inc., which provides a SaaS solution to procure and manage contract labor services.

The transaction is valued at approximately $200 million and is expected to close in Q4 2010. Grotech first invested in Fieldglass in 2005, and the company raised a total of $38 million over two rounds of equity funding from StarVest Partners L.P., HLM Management Co., BlueStream Ventures, Prism Opportunity Fund, and RBC Capital Markets as well as Grotech.

"Fieldglass had gained strong market traction and a large installed base here in the US, and needed a partner like Madison Dearborn to help accelerate their global expansion efforts," said Frank Adams, Grotech's Founder and Managing General Partner. "We have seen a lot of interest in the companies in our portfolio which show strong growth and sound fiscal management."

The impending sale is Grotech's third exit this year, following the sale of United BioSource in September and the successful initial public offering for BroadSoft in March. The firm has also continued investing in its current portfolio this year with additional funding for Zenoss, TRAFFIQ and Living Social and made a new investment in HelloWallet in May. Grotech focuses on early stage investing and continues to invest throughout the portfolio's lifecycle.

About Grotech Ventures
Founded in 1984, Grotech Ventures ( is a leading early investor in high-potential technology companies. Grotech seeks investments in communications and IT infrastructure, software and services, and Internet and digital media. The firm focuses on the Mid-Atlantic and Southeast regions and other select geographies. Grotech continues to invest and add value throughout the growth of its portfolio companies. The firm has a strong combination of financial backing, industry relationships, and deep domain and operational expertise to accelerate growth. With approximately $1 billion under management in its seven funds, Grotech supports early-stage companies through investments starting at $500,000.

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