Tuesday, July 26, 2011

Highway 12 Ventures Drops Plans For Third Fund

In an unusual move, Boise, Idaho-based Highway 12 Ventures, the venture capital firm run by George Mulhern, Phil Reed, Mark Solon, and Glenn Michael, said today that it has decided not to raise a third fund. According to a blog post by Managing Partner Mark Solon, the firm decided not to raise a third fund because it has "over twenty companies to manage" in its current portfolio, including three funds in its first fund, which is approaching ten years old. Highway 12 said it would be spending more time looking to maximize returns for our limited partners. The firm said--despite "genuine interest from both new and existing investors"--that it is looking to maximize value of its Fund I & Fund II. Solon told techrockies.com that it had plenty of LP interest, and could have raised a new fund, but that for personal reasons the firm did not want to commit to a new fund. The firm did not say if it might look into raising a new fund in the future; like most venture capital funds, Highway 12 is dependent on the interest of limited partners (LPs) in private equity and venture capital investments, something which waxes and wanes with the market and with the level of success in a venture fund's portfolio.