Latest SFE investment - interestingly a West Coast fund and internet incubator.
Safeguard Scientifics Acquires Interest in Redleaf Venture II, LP
WAYNE, Pa., June 15 /PRNewswire/ -- Safeguard Scientifics, Inc. (NYSE: SFE), the New York Stock Exchange-listed information technology (IT) holding company that identifies, acquires, operates, and manages IT companies, announced at the Early Stage East Conference last night that it has closed on a strategic investment in Redleaf Venture II, LP, a venture fund focused on early stage Internet companies.
Pete Musser, CEO of Safeguard, said, "We are pleased to have Redleaf as the newest addition to our family of private equity funds. We believe Redleaf's decision to establish its Atlantic operation in Pittsburgh speaks highly of what Governor Ridge, the Commonwealth of Pennsylvania, and Safeguard are doing to promote high-tech industry in the state. Safeguard is proud to be part of those initiatives."
In his keynote presentation at the conference, Pennsylvania's Governor Ridge announced Redleaf's decision to establish its Atlantic headquarters in Pittsburgh. "Our Technology 21 report identified the availability of seed capital as a critical element for growing new technology firms, and we've made tremendous strides in promoting venture capital funding in Pennsylvania," Ridge said.
Commenting further on the Redleaf announcement, Mr. Musser added, "Our strategic relationship with Redleaf significantly enhances Safeguard's burgeoning Internet initiatives in several ways. With its existing operations on the west coast and soon to be opened operations in Pittsburgh, Redleaf broadens Safeguard's geographic footprint on both coasts and taps into key 'net hub' locations. We believe that Redleaf's focus on early stage Internet companies will prove to be very complementary to both Safeguard's strategic objectives and to Pennsylvania Early Stage Partners, another early stage fund associated with Safeguard."
Safeguard's president and COO, Harry Wallaesa, said, "In addition to the strategic fit between Redleaf and Safeguard, Redleaf provides operational and financial support to its Internet companies. We and Redleaf believe that most entrepreneurs need and want more than just money -- they want people who have been in the trenches and who can roll-up their sleeves and add value. Redleaf's managing partners, John Kohler and Lloyd Mahaffey, are experienced executives who bring solid operating backgrounds to the table." While many venture capital firms focus on early stage Internet companies, Redleaf is unique in that its principals are seasoned high-tech executives who acquired their extensive Internet-specific knowledge at companies such as Apple Computer, Netscape Communications, Hewlett Packard, Geffen Records, and VeriFone.
"The staggering pace of Internet technology leaves little room for young entrepreneurs to learn on the job," said Mahaffey. "They simply don't have the time to deliberate on decisions that experienced managers would make instinctively. We take a very hands-on approach to guiding our young companies through the critical early stages of development. We see ourselves as 'blue collar' venture capitalists."
According to Mahaffey, for a young Internet company focusing on corporate markets to be successful, it needs to span two worlds. It must be entrenched in the latest Internet technologies and be quick and agile enough to remain at the forefront of a culture that moves at the speed of the Internet. It also needs to understand corporate information technology and the business practices of its corporate customers.
About Redleaf
Founded in 1996, Redleaf has interests in companies providing mission-critical, web-enabled solutions to Fortune 500 companies and ranks as one of the top-performing funds in its peer group. The fund has ownership interests in nine Internet start-ups including NetGravity, Moai Technologies, RedCreek Communications, Wireless OnLine, and MediaFlex.Com. Redleaf, which currently has offices in Saratoga, CA, will open its new offices in Pittsburgh, PA, September 1.
About Safeguard
Safeguard is an information technology (IT) holding company that identifies, acquires, operates, and manages IT companies and has interests in private equity funds that together form a community of shared resources. Safeguard's focus is on IT companies with particular emphasis on companies engaged in eCommerce, network infrastructure activities, and enterprise applications. Safeguard believes that these sectors will provide compelling opportunities for success driven by the rapid growth of the Internet as a fundamental business tool. A long-term partner, Safeguard works closely with its partnership companies and actively assists them with their management, operations, and finances to build value in preparation for public offerings and beyond. Safeguard also assists in managing and working with seven venture capital funds.
SOURCE Safeguard Scientifics, Inc. |
