SOURCE: Grotech Ventures

Grotech Ventures

September 05, 2013 08:00 ET

Grotech Ventures Named One of Highest Performing Funds by Preqin

Firm's Fund VII Ranked Second Out of Top Ten Highest Performing Funds

VIENNA, VA--(Marketwired - Sep 5, 2013) - Grotech Ventures, a leading early investor in high potential technology companies and one of the longest established firms in the venture capital industry, today announced that Grotech Partners VII, L.P. (or GV) was ranked the second highest performing venture capital fund of its size in the 2013 Preqin Consistent Performers in Private Equity Report. GV was noted for its performance among all funds (size 100mn+ Vintage 2006 - 2010) both in the world and among North American focused funds. At the time of Preqin's research, which was published July 2013, GV's Net IRR to LPs was greater than 52 percent with limited partner distributions to paid in capital of 176.6% and a multiple of 3x. The Fund has continued to perform since data for this report was submitted and, to date, has secured five exits, totaling $260 million in proceeds.

As part of its core strategy, Grotech characteristically represents the first institutional money raised. The firm typically invests smaller amounts of capital up front and makes other investments over time as the company grows. Additionally, Grotech creates high-level venture syndicates with other investors, and the firm has demonstrated its ability to exit strategically to maximize success for its LPs as well as portfolio companies.

"GV is a testament to our investment approach and our ability to execute in demanding market conditions," said Frank Adams, managing general partner and founder of Grotech Ventures. "Our success with GV was instrumental in raising our eighth fund earlier this year in a very challenging environment with both existing and new investors."

In May, Grotech closed Grotech Ventures II ("GV II"), with $225 million in committed capital. Like GV, the approach for GV II is consistent with Grotech's core strategy, continuing to be in areas where the firm has deep expertise. Grotech seeks the most innovative early stage IT companies in high growth markets like digital media; social, mobile & cloud computing; enterprise and infrastructure software; security technologies; consumer internet & ecommerce; as well as energy and healthcare IT.

Grotech looks for companies with strong founding teams and significant opportunities for success in large potential markets. Some of the firm's portfolio companies that exemplify Grotech's strategy include HelloWallet, Invincea, LivingSocial, Logi Analytics, LogRythym, OpenQ, Optoro and Zenoss.

About the Consistent Performers in Private Equity Report
The 2013 Consistent Performers in Private Equity is a new report from Preqin, showing an excerpt of data featured in the 2013 Preqin Private Equity Performance Monitor. Preqin assists private equity investors in their evaluations by providing transparent and accurate fund-by-fund returns data for over 6,300 private equity funds, representing 70% of the total capital raised by the industry.

About Grotech Ventures
Founded in 1984, Grotech Ventures (www.grotech.com) is a leading early investor in high-potential technology companies. With more than $1.3B under management, Grotech seeks innovative, early-stage IT companies and continues to invest and add value throughout the growth of its portfolio companies. The firm has a strong combination of industry relationships and deep domain and operational expertise to accelerate growth. Grotech supports early-stage companies through investments starting at $500,000. General partners include Frank Adams, Chuck Cullen, Lawson DeVries, Steve Fredrick, Don Rainey and Joe Zell. The firm has offices in Virginia, Maryland and Colorado.

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