[Posted on October 2, 2007 - 2:02 PM]
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DiggIgnition Partners founding partner Jon Anderson has his sights set on later-stage tech companies in the Pacific Northwest. Drawing on nine years as an executive at Microsoft Corp., the venture capitalist is leading the firm's new $275 million Ignition Growth Capital Fund, which will target eight to 10 companies that are generating revenues and showing profits. In addition to the growth fund, Ignition also announced a new $400 million early-stage fund, bringing the total under management to $1.6 million and making it one of the largest VC firms in the region.
Ignition, which was founded in 2000, boasts a number of former executives from Microsoft and McCaw Cellular Communications Inc., also based in Washington, among its ranks. The firm typically invests $10 million to $15 million in earlier-stage startups, although the firm began investing in more mature companies last year when it closed an $80 million fund, part of which is aimed at encouraging trade sales.
"We'll invest in later stage privately held companies, typically with a Northwest connection, that have strong growth prospects and a track record of positive EBITDA," Anderson tells Behind the Money. The new growth fund enables Ignition "to make capital investments of a size that would not typically make sense for a venture model," such as $25 million to $50 million. Investing in already profitable enterprises that are leaders in their markets will help Ignition deliver solid returns through high-value acquisitions or initial public offerings. He expects the first investments to be made in the fourth quarter.
At Microsoft, Anderson focused on strategic issues, such as enterprise licensing, and he was involved in several acquisitions, including Microsoft Mail, FoxPro and Visio, as well as the company's proposed merger with Intuit. He serves on the boards of Full Capture Solutions Inc., Jobster Inc. and MarketRange Inc. and was previously on the board of wireless phone software developer Wildseed Ltd., acquired by AOL LLC for undisclosed terms two years ago. - Mary Kathleen Flynn
See Ignition press release
See post from John Cook's venture blog
