Editor’s note: Each business day, Local Tech Wire features a profile of a venture capital or investment firm operating in the I-85 corridor. LTW has now profiled more than 50 firms. Matthew Burns, Daniel Pearson and Worth Civils compiled the series. It was a case of money manager meets deal maker when well-heeled Franklin Street Partners of Chapel Hill teamed up with scrappy Fairview Capital of Raleigh six years ago to combine their investment funds.
The combination added private equity to the mix of investment services provided by Franklin Street and gave Fairview some deeper pockets to tap for deals.
With $70 million under management, the firm likes to provide early-stage financing for both information technology and life sciences companies.
It has had mixed success, cashing out of Osprey Systems at a high valuation and a portfolio that still includes promising firms like Cogent Neuroscience, Biolex and HAHT Commerce. Other investments, like those in NeoButler and Quisic, haven’t performed as well.
Franklin Street/Fairview also has been the breeding ground for a couple of other venture firms in the Triangle, obtaining the Small Business Investment Corporation license that spawned Oberlin Capital and serving as a key connection in the formation of The Halifax Group.
Here’s the skinny:
Featured Firm: Franklin Street/Fairview Capital
Mailing address: 1450 Raleigh Road, Suite 300, Chapel Hill, NC 27517
Phone number: (919) 489-2600
Web site: www.franklin-street.com
Stuart Frantz (President)
Daniel Duffy (Principal)
Focus of firm: Early-stage technology, both IT and life science.
Size of current fund: No fund
Money under management: $70 million
Companies funded over the last five years:
HAHT Commerce Inc.
Mirador Systems Inc.
Osprey Systems Inc.
How many new deals do you expect to fund in 2002: Three to four
In what size range: $2 million
Sweet Spot (types of deals, stage of the company): Information technology and life sciences; series A.
Most important attributes for companies seeking funding: Completed product.
What differentiates you: Partners’ operating experience.
Monday’s profile: Gardiner Capital