A very interesting read, considering that Andrew "Flip" Filipowski is the chief architect of Sunlot (think Sun Times):
http://online.barrons.com/news/articles/SB941848191972800947?tesla=yThe encouraging news for entrepreneurs is that this might be changing. Now a Chicago technology tycoon, Andrew "Flip" Filipowski, says it's time for Silicon Valley to share the wealth. "As an Internet economy replaces the traditional economy, you'll have an economic cesspool in those cities" if they aren't included in tech-driven growth, says the former chairman and chief executive of Platinum Technology International, a suburban Chicago software concern he founded in 1987 that was recently acquired by Computer Associates for $3.5 billion. The stake of this butcher's son from Chicago's Near West Side was worth about $290 million.
Filipowski is part of an emerging new segment of venture capitalists and angel investors: entrepreneurs who made it big and now want to invest in early-stage companies. What makes Filipowski's approach somewhat unusual: he wants to take his investment vehicle public a la Internet Capital Group, he plans to take an incubator approach to growing his investments, and he intends to do this in the heart of Chicago's Goose Island industrial zone.
Coming from anyone else, Filipowski's strategy might not garner much respect from the technology establishment, but it's getting behind him. For example, Dell Computer is expected to become a significant investor in Filipowski's venture group, Divine InterVentures.
So far, Divine InterVentures has raised more than $400 million for its first fund, and another $100 million in seed money for very-early-stage investments.
In addition to Dell, Filipowski has been busy raising money from all corners of Chicago's clubby business community, including Motorola and Tellabs . And the master marketer has managed to get both Chicago Mayor Richard Daley and Illinois Governor George Ryan to throw their weight behind Filipowski's Internet incubator project. Not wanting to be known as the politicians that missed the Internet, they are backing Filipowski's vision to create an entrepreneurial culture in the center of the industrial heartland, which calls for a publicly held holding company that invests in a group of 30 or so Internet start-ups, of which many will locate under the same roof in Chicago.
While publicly held venture-capital firms aren't necessarily new (think CMGI or ICG) and Internet incubators aren't necessarily new (think idealab, which spawned eToys), the combination of the two is relatively new. The group could file for an IPO as early as December, said one source familiar with the company.
The advantage to an incubator approach, which is rapidly catching on as a way to grow 'Netcos, is that the start-ups share resources and expertise through their common shareholders. And in the case of Divine InterVentures, an incubator fosters the cultivation of Silicon Valley culture in a place where it's lacking, such as Chicago, Filipowski notes.
But there are downsides to incubators, says Gill Cogan, a general partner of Weiss Peck & Greer, one of the Bay Area's top-tier venture firms. These firms get coddled more than your average start-ups, and "sooner or later you have to push them out of the nest," he says. What's more, backers are more reluctant to pull the plug on lousy performers after they have been part of the start-up family, he adds.
"That's probably true," Filipowski admits. But that isn't going to stop this butcher's son from taking his Internet fund to public market any time soon.
Here's what's interesting about the above, in case you didn't figure it out. It was penned by a Mark Veverka on Nov. 8, 1999. BTW, Google Mark Veverka + Bitcoin, and see what you find.
Recall when I told you to remember the following link?:
http://lsvp.com/2013/05/14/lightspeed-is-anchoring-a-bitcoin-focused-fund/Well, guess what happened to Weiss Peck & Greer:
http://www.nndb.com/company/132/000125754/Weiss, Peck & Greer
COMPANY
Venture capital firm, over $700M under management. Part of Robeco. Other parts of WPG are now Lightspeed Venture Partners.
Industry: Private Equity
Ticker: (subsidiary)
Again, Google Lightspeed Venture Partners + Bitcoin, and see if you find anything interesting.
Pretty impressive for starting out as a butcher's son and... GULP! On second thought, I will now be deleting all my posts. NOT!