Why did Kip Frey, well known in the Research Triangle as a serial entrepreneur, venture capitalist, and most recently vice provost for innovation and entrepreneurship at Duke, leave that position in June to join the newly formed Indianapolis, Indiana-based HG Ventures as managing director?
“I had an opportunity so unique and compelling, it was the only thing I would have left Duke for,” Frey said in an exclusive interview with WRAL Techwire. I love the Research Triangle community, but few people who do what I do get an opportunity like this.”
He added, “I’ve been in all parts of the entrepreneurial ecosystem. I was a startup CEO a few times, a venture capitalist, and as vice provost for innovation at Duke, responsible for the entire entrepreneurial ecosystem at Duke. This is an opportunity like none of the others. I’ll have the ability to create a complete, closed system to form new entrepreneurial companies.”
A lawyer, Frey also practiced intellectual property law and later joined the Turner Broadcasting Network, where he contributed to forming the Cartoon Network and construction of the MGM Grand Hotel. He served as CEO of seven startup companies.
Frey said he knew the CEO of the Heritage Group, parent of HG Ventures, where Frey will be executive vice president of new ventures, at a Duke basketball game.
The Heritage Group, (THG) founded in 1930, has a long history of innovation in infrastructure, materials, specialty chemicals, energy and environmental services. Frey said in the HG Ventures announcement, “I was struck by its incredible legacy of innovation and entrepreneurship.”
Focus on entrepreneurship is a luxury
“They decided that in order to position the company to grow, they wanted to put significant resources behind creation of an entirely new division, not just for investing, but to support the regional community and entrepreneurship.” Frey noted that THG has really interesting R&D group with a state-of-art 50,000 square foot facility. HG Ventures, he said, “Will be part of all that. All of those things in combination made it very interesting to me.”
HG Ventures, Frey said, expects to establish a fun on the order of $100 million over a five-year period with the money provided from THG. While, Frey pointed out, “A lot of folks have funds of that magnitude, they spend half their lives raising funds. Being able to just focus on entrepreneurs is a luxury.” In the Triangle, Frey was a venture capitalist with Durham-based Intersouth Partners for a decade, so he knows what he’s talking about.
John Glushik, another former Intersouth VC, who worked with Frey at Duke and was responsible for creating the Duke Angel Network, is joining Frey at HG Ventures. “John is an incredibly talented venture investor. Way better than I am. It was a coup for to offer him a place and have him accept.”
The new fund will focus on the same areas as THG, materials science, specialty chemicals, environmental science, “Companies that can take advantage of our large customer base, our R&D, or the partners we have. Those kinds of areas primarily, old economy things. As in all things, technology will play a role in modernizing those markets. There isn’t as much froth in them as in technology markets right now.”
It will also, he said, “Do a smaller number of deals in this region, even if they’re not related to what we do at THG. We’re already off and running and meeting with companies. We expect to make our first investment before the end of the week. And another big announcement is coming next week.”
The Triangle is “fertile ground”
Frey said that while he was in Indianapolis twice previously when Duke won national basketball championships, the city is new to him, although he grew up in Columbus, Ohio, so the Midwest is not a new experience for him.
“I think Indianapolis is going to see some things. In a lot of ways, it reminds me of Raleigh-Durham a decade ago. It has a lot of new entrepreneurial oriented companies, service providers and investors. I’m hopeful we’ll be part of a growth story that comes close to what the Triangle has become.”
The transformation of Durham over the last decade has been “Really a miracle and another reason why it was so hard to leave,” Frey said. “But I haven’t sold my basketball and football tickets. I still plan to be part of the community, if not physically present. The area is a very fertile ground for the type of investing we want to do.”
