StarVest’s Fund II Closes 11th Investment

ideeli Fuels Growth of Top-Caliber Portfolio; Firm Accelerates Exits from Its Inaugural Fund I

NEW YORK--()--StarVest Partners, a venture capital firm investing in technology-enabled business services companies throughout the United States, has made 11 investments from its second fund, which was launched in 2009.

StarVest’s latest transaction from StarVest Fund II was a follow-on investment in ideeli’s $41 million Series C round announced earlier this quarter, alongside Next World Capital, Cue Ball Capital, Constellation Growth Capital and Kodiak Venture Partners. ideeli is a leading online retail site dedicated to delivering a unique, exciting daily shopping experience with a curated selection of offerings across the apparel, accessories, home, shoes, kids, travel and lifestyle categories. Launched in 2007 and headquartered in the Soho neighborhood of New York City, the company now has more than 4 million members across the United States.

“StarVest has developed a reputation for delivering strong results for our investors and our portfolio companies,” said Laura B. Sachar, a firm co-founder and general partner who led both rounds of investments in ideeli. “Innovative e-commerce services firms such as ideeli are the hallmark of our successful investment strategy. We seek out companies with innovative business models supported by experienced management teams, and we work collectively to drive ongoing success.”

Other investments from Fund II include Veracode, provider of the world’s only independent cloud-based application risk management platform; Accept Software, a Software-as-a-Service (SaaS) solution provider for product innovation management; Host Analytics, the leader in on-demand corporate performance management; Travel Ad Network, the leading and largest vertical media company in travel; and PivotLink, the leading provider of SaaS business intelligence (BI) solutions.

StarVest has also been accelerating exits among its Fund I investments over the past year, including:

  • Fieldglass, which sold for more than five times the capital originally invested;
  • iCrossing, which was sold to Hearst as the core of its digital media strategy; and
  • Insurance.com, which sold a portion of its assets to Quinn Street and continues to monetize its book of insurance policies in force.

These transactions follow other significant exits from StarVest’s first fund, including MessageOne, acquired by Dell in 2008; NetSuite (NYSE: N), which went public in 2007; and Connected, acquired by Iron Mountain in 2004.

StarVest was also in the news recently when another co-founder/general partner, Deborah Farrington, was named the top-ranked female executive on Forbes’ The Midas 100 List, a survey of the top dealmakers in the United States.

About StarVest Partners

StarVest Partners is a New York-based venture capital firm with $400 million under management that is funding technology-enabled business services companies throughout the United States. The firm's value-added partnership maintains a laser focus on five key emerging technology and services sectors: Software as a Service (SaaS), Internet Marketing Services, eCommerce Services, Data Aggregation Services and Identity and Security Management. StarVest combines a sophisticated investment background with the experience to foresee opportunities for both its portfolio companies and funding partners. The firm’s general partners are Deborah A. Farrington, Laura B. Sachar, Jeanne M. Sullivan and Larry A. Bettino. More information about StarVest is available at the company's Web site: www.starvestpartners.com.

Contacts

StarVest Partners:
Ashleigh Egan, 212-255-0080, ext.12
aegan@articulatecomms.com

Release Summary

StarVest Partners, a venture capital firm investing in technology-enabled business services companies throughout the United States, has made 11 investments from its second fund.

Contacts

StarVest Partners:
Ashleigh Egan, 212-255-0080, ext.12
aegan@articulatecomms.com