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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Boplicity who wrote (35115)	4/1/2001 5:53:24 PM
From: stockman_scott	Respond to of 65232

Trident Capital to invest in public companies... redherring.com Dealflow: Trident Capital to invest in public companies By the Dealflow Staff Red Herring March 28 ------------------------------------------------------------ <<TOP STORY: TRIDENT LOOKING FOR GOOD PUBLIC FIRMS A mere 12 months ago, the public markets were accepting any business, startups without a hint of revenue got huge market caps, and venture capitalists saw obscenely high rates of return. Those conditions pushed too many companies public too soon. Some of them are real businesses, but now they're in a pinch: the markets are closed to secondary offerings, and venture capital money is frequently out of reach of later-stage firms. Trident Capital has its eye on them. The firm will use its new $725 million fund to invest in a number of publicly-traded companies in need of working capital and operating close to the break-even point. According to Trident's research, 175 recently public companies are trading below their cash value, says managing director of Trident Capital Venetia Kontogouris. "There are a lot of really good valuations -- some of them are better than private companies," she says. Previous Trident funds invested in one or two public companies. Another side-effect of the dot-com boom: entrepreneurial greed. Ms. Kontogouris has seen plenty of it. The past two years saw entrepreneurs that were merely looking for big cash and equity packages, she says. While Trident still receives an occasional greed-laden business plan, for the most part that trend is over. And with the frantic pace of VC investment moving back to historical norms, the new fund will take two to three years to invest, she says. By contrast, the last fund was almost fully invested in 12 months. Trident (http://www.tridentcap.com) is looking for entrepreneurs with an almost fanatical devotion to their ideas and a willingness to endure pain to be successful. "Good entrepreneurs always get funded," she says. "Those that will sacrifice everything for an idea." Outside of that, entrepreneurs need to understand their customers, Ms. Kontogouris says. There's too much wishful thinking on that issue. FUNDING DETAILS -- Location: Palo Alto, CA; Fund: Fund V; Fund Size: $725 million; Prior Fund: $350M; Focus: Trident invests in software companies in the financial services, telecom, and Net infrastructure businesses; Average Investment: $5 million to $20 million over the life of the company. -- Steve Silverman>> ________________________________________________ Greg: It's amazing how some of the stronger Venture Capital firms have shifted their strategies...Trident is headquartered on the West Coast but has an office in Lake Forrest. Hope you are enjoying the weekend. Best Regards, Scott