Top CDOV Holdings:
Equity holdings
Liquidity events. Comdisco Ventures group has been successful in
identifying companies that ultimately proceed to a liquidity event, such as an
initial public offering, or a merger with or sale to another company. In
addition to its ability to identify these companies, Comdisco Ventures group
benefits from the IPO market's wide acceptance of transactions representing
venture capital-backed companies. According to the National Venture Capital
Association and Venture Economics, approximately 50%, or 271, of the 544
companies that went public in 1999 were venture capital-backed. These liquidity
events give Comdisco Ventures group the opportunity to sell or otherwise
dispose of its equity interests in those companies in an orderly manner to
generate cash that Comdisco Ventures group generally looks to reinvest in new
transactions, because Comdisco Ventures group believes it is comparatively
advantageous
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to make new advances to start-ups rather than hold the securities of public
companies. In most cases, securities law restrictions on transfer and
contractual lock-up provisions restrict Comdisco Ventures group's ability to
sell its equity positions for several months after a liquidity event. The
following table lists customers of Comdisco Ventures group that have been
acquired by a public company or have had their IPO, since October 1, 1996.
Comdisco Ventures Group's Customers That Have Completed Their Initial Public
Offering
or Been Acquired by Public Companies Since October 1, 1996
First Nine Months of Fiscal 2000
IPO Acquisition by Public Company
Be Free, Inc. Abaton.com, Inc.
CacheFlow, Inc. AdKnowledge, Inc.
Caliper Technologies Corp.
C-Bridge Internet Solutions, Inc. Agere, Inc.
Arithmos, Inc.
CrossWorlds Software, Inc. @mobile.com, Inc.
Data Critical Corp.
Digital Impact, Inc. @motion, Inc.
Digital Insight C-Port Corporation
Diversa Corporation Della & James.com
DSL.net, Inc. eve.com, Inc.
FirstSense Software, Inc.
Edison Schools, Inc.
(formerly, Edison Project) FlowWise Networks
Egreetings Network, Inc.
Flyswat, Inc.
Foglight Software, Inc.
Exelixis, Inc. FreeGate Corp.
Extensity, Inc.
GetThere.com, Inc.
Gloss.com, Inc.
iMark.com, Inc.
Handspring, Inc. Mitotix, Inc.
HomeGrocer.com, Inc.
Novera Software, Inc.
iBEAM Broadcasting Corporation Oberon Software, Inc.
iGo Corporation
Interwoven, Inc. Onebox.com
Lightspan Partnership, Inc.
Pivotal Corporation
Power Trends, Inc.
Metawave Communications Corp.
MotherNature.com, Inc. Post Communications, Inc.
Neoforma.com, Inc. Promatory Communications
Net.Genesis Corp. Quote.com, Inc.
Raycer, Inc.
Niku Corporation remarQ Communities, Inc.
OnDisplay, Inc. RightPoint Software, Inc.
ONI Systems Corp. (formerly RightWorks Corporation
Optical Networks, Inc.) Rubric, Inc.
Onvia.com, Inc. Sandpiper Networks, Inc.
PlanetRx.com, Inc. Siara Systems, Inc.
Praecis Pharmaceuticals, Inc. Simba Technologies, Inc.
Quantum Effect Devices, Inc. Supplybase, Inc.
QuickLogic Corp. TimeShift, Inc.
Saba Software, Inc. Tycho Networks, Inc.
SciQuest.com, Inc. Warpspeed Communications, Inc.
Sequenon, Inc. WaveSpan Corporation
Silicon Image, Inc. WebSpective Software, Inc.
Silicon Laboratories, Inc. Xros, Inc.
Snowball.com, Inc.
Telocity, Inc.
Tularik, Inc.
Turnstone Systems, Inc.
Virage, Inc.
Virata Corp.
Webvan Group, Inc.
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<TABLE>
<CAPTION>
Fiscal 1999
-----------
IPO Acquisition by Public Company
--- -----------------------------
<S> <C>
Adforce, Inc. Academic Systems
Agile Software Corporation BabyCenter, Inc.
Allaire Corporation BFC Enterprises, Inc.
Ariba Technologies, Inc. BioStar, Inc.
Ask Jeeves, Inc. BrainPlay.com, Inc.
Audible, Inc. Chabi.com
Concur Technologies, Inc. CytoMed, Inc.
Continuus Software Corp. DAS Devices, Inc.
Copper Mountain Networks, Inc. Diamond Lane Communications Corp.
Critical Path, Inc. Excel Switching Corporation
E.piphany, Inc. Expersoft Corp.
Efficient Networks, Inc. Fibex Systems, Inc.
E-Loan, Inc. Internet Profiles Corp.
eToys, Inc. Lightera Networks, Inc.
Extreme Networks, Inc. LinkExchange, Inc.
FlyCast Communications Corp. Monterey Networks, Inc.
Gadzoox Networks, Inc. Pivot Technologies, Inc.
Intraware, Inc. Seeker Software
Keynote Systems, Inc. Sentryl Software Corporation
NetObjects, Inc. SpringStreet, Inc.
Netro Corporation StratumOne Communications, Inc.
NextCard, Inc. TransMedia Communications, Inc.
NorthPoint Communications, Inc. When, Inc. (when.com)
NVidia Corporation Whistle Communications
Packeteer, Inc. Zip2 Corporation
Phone.com, Inc.
Portal Software, Inc.
Quokka Sports
Ramp Networks, Inc.
SalesLogix Corporation
Select Comfort Direct Corp.
Showcase Corporation
TiVO, Inc.
Ventro Corporation (formerly, Chemdex
Corp.)
Viant Corporation
Vignette Corporation
Vixel Corporation
</TABLE>
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<TABLE>
<CAPTION>
Fiscal 1998
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IPO Acquisition by Public Company
--- -----------------------------
<S> <C>
Com21, Inc. AnyRiver Entertainment, Inc.
CombiChem, Inc. ComCore Semiconductor, Inc.
Corixa Corporation CommQuest Technologies, Inc.
FlexiInternational Software, Inc. European Software Publishing Ltd.
Focal, Inc. gene/Networks, Inc.
FVC.COM Global Center, Inc.
Gene Logic, Inc. Hotmail Corporation
Hybrid Networks, Inc. ICAST Corp.
Information Advantage, Inc. Insight Micro Array Systems
Inktomi Corporation Netbot, Inc.
MicroMuse, Inc. OnLive! Technologies, Inc.
Power Integrations, Inc. PetCare Plus, Inc.
Preview Travel, Inc. Prominet Corporation
SportsLine.com, Inc. Research Holdings, Ltd.
USWeb Corporation Wayfarer Communications, Inc.
<CAPTION>
Fiscal 1997
-----------
IPO Acquisition by Public Company
--- -----------------------------
<S> <C>
Cardima, Inc. Agile Networks, Inc.
Cerus Corporation Alexon Biomedical, Inc.
Concentric Network Corp. Allelix Neuroscience, Inc.
Corsair Communications, Inc. Books That Work
Cubist Pharmaceuticals, Inc. ChemGenics/Millennium Pharmaceuticals
Endocardial Solutions, Inc. Digital Style Corp.
Intensiva HealthCare Corp. Dynasty Technologies, Inc.
Leukofile, Inc. Informed Access Systems, Inc.
Lightbridge, Inc. Integrity QA Software, Inc.
Micro Therapeutics, Inc. Light Source Computer Images, Inc.
NeoMagic Corporation NetObjects, Inc.
Netmoves Corporation OnStream Networks, Inc.
(formerly, faxSAV, Inc.) PharmaGenics, Inc.
Peapod, Inc. PharmaSource Group, Inc.
Triangle Pharmaceuticals, Inc. Quinta Corporation
ViroPharma, Inc. Rapid City Communications Corp.
Sahara Networks, Inc.
Sneaker Stadium, Inc.
TransGlobal Systems, Inc.
TravelNet, Inc.
TView, Inc.
ViewStar Corporation
Web TV Networks, Inc.
Whitetree, Inc.
Zane Publishing, Inc.
</TABLE>
Public equity holdings. Comdisco Ventures group directs the management of
its public equity holdings through a third party asset manager, E.M. Warburg,
Pincus & Co. E.M. Warburg, Pincus & Co. provides administrative services for
Comdisco Ventures group, including such activities as exercising warrants and
filing required documentation with the SEC. Additionally, they execute stock
sales and advise on short term sales strategy and timing consistent with
Comdisco Ventures group's practice of selling stock in an orderly manner.
Comdisco Ventures group's disposition policy with respect to its equity
holdings is not intended to, and does not, assure that Comdisco Ventures group
will maximize its return on any particular holding. Rather, Comdisco Ventures
group's general policy historically has been to sell its equity positions in an
orderly manner as soon as reasonably possible after a liquidity event. In
almost all cases, securities law restrictions on transfer and contractual lock-
up provisions restrict
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Comdisco Ventures group's ability to sell its equity position for several
months after a liquidity event. Consequently, Comdisco Ventures group's general
policy and these restrictions mean that Comdisco Ventures group may be unable
to realize the highest possible price for its equity positions. Comdisco
Ventures group's management consults with its outside manager on at least a
quarterly basis and has adjusted its general policy on occasion to respond to
market conditions. Going forward, Comdisco Ventures group may review and change
this general policy.
As of June 30, 2000, the current public equity holdings of Comdisco
Ventures group had an equity value of $484 million and represented ownership in
approximately 70 companies. The ten largest equity holdings represented 71% of
the total equity value of these holdings and was composed of the following
companies:
Largest Public Equity Stakes as of June 30, 2000
<TABLE>
<CAPTION>
Company Industry Sector
----------------------------------- ----------------------------------
<S> <C>
Ciena Corporation/1/ Communications & Networking
E.piphany, Inc. Software & Computer Services
Handspring, Inc. Computer Hardware & Semiconductors
iBEAM Broadcasting Corporation Communications & Networking
Niku Corporation Software & Computer Services
Nortel Networks Corp./2/ Communications & Networking
OnDisplay, Inc. Internet
ONI Systems Corp. (formerly Optical
Networks, Inc.) Communications & Networking
Redback Networks, Inc./3/ Communications & Networking
Turnstone Systems, Inc. Communications & Networking
</TABLE>
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/1/ Comdisco Ventures group received shares in Ciena Corporation, as a
result of that company's purchase of Lightera Networks, Inc.
/2/ Comdisco Ventures group received shares in Nortel Networks Corp., as
a result of that company's purchase of Promatory Communications.
/3/ Comdisco Ventures group received shares in Redback Networks, Inc. as
a result of that company's purchase of Siara Systems, Inc.
The equity instruments Comdisco Ventures group holds are generally
subject to securities law restrictions on transfer and contractual lock-ups
restricting its ability to sell them for up to approximately 180 days after an
initial public offering or longer. Of the $484 million in equity value of the
current public equity holdings of Comdisco Ventures group at June 30, 2000,
approximately $390 million was not then available for sale as a result of
unexpired restrictions. The public market for high-technology and other
emerging growth companies is extremely volatile. This volatility may adversely
affect both Comdisco Ventures group's ability to dispose of those equity
securities and the value of those equity securities on disposal.
Private equity holdings. In addition to the public equity holdings of
Comdisco Ventures group, as of June 30, 2000, it held warrants and other equity
positions in approximately 450 companies that are still private. The following
table sets forth those companies, grouped by business sector, to which Comdisco
Ventures group has committed $3 million or more in financing (whether as a
venture lease, venture debt or direct equity purchase) as of June 30, 2000.
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