Big Fish: Jim Bidzos, accidental VC
By Paul Kapustka
Redherring.com
January 27, 2000
Now that the RSA Security conference is over, Jim Bidzos can give up his role as party host for another year. But truth be told, the fun continues for Mr. Bidzos, who has found perhaps the perfect job: the accidental venture capitalist.
"I'm very fortunate," says the 44-year-old Mr. Bidzos, who until recently was president and CEO of RSA Security (Nasdaq: RSAS), the firm with the famous (and widely licensed) encryption algorithm. This past September, however, Mr. Bidzos relinquished his operational roles at RSA (his official title is vice chairman) and now spends most of his working time as an angel investor, picking and choosing which cool startups to invest in.
"If you asked me 15 years ago what my goals were, they would have been to work very little, spend more time on my hobbies and interests, and still do well financially," Mr. Bidzos says. Thanks to some incredible investment payoffs, Mr. Bidzos now has achieved all three goals.
"I don't want to retire, but I want business to be fun," Mr. Bidzos says. "What's wonderful is that I am now able to pick and choose which firms I want to work with."
SEEING THE LIGHT
Not too many years ago, Mr. Bidzos says the Internet revolution was far from a given. Though risky, he decided to follow his gut instincts and act as a founding investor in a couple of startups called Netscape Communications and Cybercash (Nasdaq: CYCH), which in 1994 were still relatively unknown. Early the next year, he personally founded Verisign (Nasdaq: VRSH), which is now an industry leader in electronic-transaction identification services.
And in 1996, his hard work on behalf of RSA (where he served as president for more than 13 years) paid off handsomely, when the company merged with Security Dynamics (the combined companies now go by the single name of RSA Security) in a deal that made Mr. Bidzos's stock holdings worth more than $100 million. Where his net worth is now, he isn't really sure.
"You'd have to ask my lawyers," says Mr. Bidzos, with the ease and humor that comes from someone who knows he'll never have to balance a checkbook again. Subsequent investments in more than 50 other startups seem to pay off regularly, sometimes at multiples of 1,000 or more, Mr. Bidzos says.
"It's a little early to tell what the total return on my investments has been," he says. "But all you need to do is look at some of the IPOs and figure out how much you'd make if you were able to buy the stock at a dime a share."
KNOCK, KNOCK
According to Mr. Bidzos, the investment opportunities come at him more quickly than he can handle them. At the recent RSA conference in San Jose, he says that about 50 different people approached him, asking him to invest. Usually, his connections and knowledge of the security industry are the lure, but others may just be seeking the heft his surname adds to a business plan.
"I think a lot of the companies just like the idea of having my name on their list of investors," Mr. Bidzos says, tongue in cheek.
To make the Bidzos short list, potential investees must have a sense of humor, as well as some neat technology.
"Fun is important to me," says Mr. Bidzos, whose most recent investments include online payment plays Brodia and Spendcash. "If I like the technology and I like the people, I usually do it [invest]. I also make sure that they don't want a lot of my time."
FLYING HIGH
That's because Mr. Bidzos must be free to enjoy some of the trappings of his wealth, which include a recently purchased Tudor-style mansion in tony Marin County and a private performance airplane.
"Life's too short not to do things that are fun," says Mr. Bidzos, adding that he spent some time last fall in Russia, where he got to pilot a Mig fighter jet. Even when he works, Mr. Bidzos has fun, and nowhere is this more on display than at the RSA conference, a different sort of trade show, to say the least.
As always, this year's event had a good deal of tomfoolery, including a security-spoofing Jeopardy game-show panel, a visit from comedian Dennis Miller, as well as the trademark parody musical performance. This year, members of the group Jefferson Starship performed their signature "White Rabbit" tune, with some lyrics tailored to entertain the RSA crowd.
"Having Jefferson Starship there was a gas," says Mr. Bidzos, who plans to remain active as party host when the RSA event moves to San Francisco's Moscone Center next year. However, he will stick to a promise made a couple years ago and remain silent whenever music is played.
"Two years ago we had the Sugar Hill Gang at the show, and I rapped with them," says Mr. Bidzos, who knows his rhythmic limits. "As soon as we finished, I promised I would never sing again," he says. "I plan to stick by that promise." |
