Commonwealth Capital Ventures Closes Fund IV at $250 Million

Business Wire, March 12, 2007

Collaborative, team-based investment approach attracts entrepreneurs, yields strong returns for LPs

WALTHAM, Mass. -- Commonwealth Capital Ventures (Commonwealth) today announced it has closed its fourth fund, Commonwealth Capital Ventures IV (Commonwealth IV). The $250 million fund is primarily targeted at early-stage and venture growth technology investments. With commitments well in excess of its $200 million target, Commonwealth chose to cap the fund at $250 million to maintain the firm's successful business model while creating opportunities for several new limited partners with strong venture programs. The addition of this new fund brings Commonwealth's total capital and commitments under management to $580 million. Commonwealth IV follows the $177 million Commonwealth III Fund, which closed in October 2000.

"Commonwealth Capital has built a great portfolio of successful companies and an outstanding team of highly-respected general partners," said Phil Rotner, Managing Director of Private Equity Investments at MIT, an investor in Commonwealth IV and the firm's two previous funds. "The team's collaborative style and patient company-building philosophy has attracted talented entrepreneurs. We are confident that the firm will continue to source excellent opportunities."

Commonwealth will continue to focus on investments in companies operating in the software and services, communications technology, and analytic and diagnostic instrumentation sectors in the Northeastern United States. Initial investments will typically range from $3 to $5 million, with up to $10 million or more invested per company over multiple rounds.

"We are gratified to be supported by high-quality limited partners who are attracted to our track record and team-based investing approach," said Mike Fitzgerald, founder and managing general partner at Commonwealth Capital Ventures. "We look forward to funding and working alongside outstanding entrepreneurs and visionaries whose ideas and hard work will create the market-leading companies of the future, and to collaborating with our venture colleagues who share a similar philosophy."

Joining Fitzgerald as general partners on the new fund are co-founders Jeff Hurst and Steve McCormack, seven-year Commonwealth general partner Justin Perreault, and seasoned investor and entrepreneur Elliot Katzman, who joined the firm earlier this year. Commonwealth's five general partners each have extensive experience investing in and operating high-growth technology companies. They have backed a combined total of more than 130 early-stage and venture growth companies over their careers.

Commonwealth has helped to build a number of businesses from start up to profitability and earned strong multiples of capital. Examples of recent Commonwealth exits include high-growth Internet commerce and information portal companies BuyerZone (acquired by Reed Business Information) and Aberdeen Group (acquired by Harte-Hanks); financial technology leader Macgregor Group (acquired by Investment Technology Group, Inc.); software infrastructure company i-Logix (acquired by Telelogic AB); consumer-technology company Cardscan (acquired by Newell Rubbermaid); and the initial public offering of medical device pioneer NeuroMetrix (Nasdaq: NURO).

"Several of our recent exits were from companies founded at the peak of the technology bubble," said Fitzgerald. "It is a testament the talent and persistence of these companies' management teams together with our patient, disciplined investment style that they have emerged as strong leaders in their respective segments and generated such satisfying exits."

Commonwealth's active investments include a number of high-growth companies, among them Constant Contact (small business-focused e-marketing), Crossbeam Systems (unified threat management), Soundbite Communications (on-demand voice messaging), Nova Analytics (electrochemistry instruments), Antenna Software (mobile applications) and e-Dialog (enterprise email marketing).

About Commonwealth Capital Ventures

Commonwealth Capital Ventures (Waltham, MA) is a venture capital firm focused on software and services, communications technology, and instruments and systems investments in the Northeastern United States. The Partnership's collaborative, team-based investment approach brings the deep venture and operating expertise, experience, and contacts of the entire partnership to bear to help every portfolio company be successful throughout all stages of their company's lifecycle. Since its inception in 1995, the firm's partners have invested in more than 130 high-growth companies, many of which are leaders in their respective industry categories. The Partnership's limited partners are highly sophisticated venture investors and include leading endowments, foundations, family offices, and financial organizations. The firm currently manages over $580 million of committed capital across four funds. For more information, visit www.commonwealthvc.com.