The Info List - Morgenthaler

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Morgenthaler Ventures - Information Technology: Menlo Park, California, United States Morgenthaler Ventures - Life Sciences: Palo Alto, California, United States Morgenthaler Private Equity: Cleveland, Ohio, United States

Products Venture capital, leveraged buyouts

Total assets $2.8 billion (total Capital raised since inception)

Number of employees


Subsidiaries Morgenthaler Ventures, Morgenthaler Partners

Website www.morgenthaler.com

Morgenthaler is one of the oldest private equity investment firms in the US investing through both venture capital and leverage buyout transactions. Morgenthaler operates two connected private equity businesses:[1]

Morgenthaler Ventures – venture capital business focused on life sciences and information technology investments Morgenthaler Partners – buyout business focused on management buyouts, leveraged recapitalizations and leveraged rollups.

The firm which was founded by David Morgenthaler
David Morgenthaler
in 1968, is based in Cleveland
with offices in Menlo Park, California, Boston, and Boulder, Colorado.


1 History

1.1 David Morgenthaler

2 Investment funds 3 Investments 4 References 5 Further reading 6 External links

History[edit] David Morgenthaler
David Morgenthaler
founded the firm in 1968 after a career as an operating executive. From 1957 until 1968, Morgenthaler was CEO of Foseco, Inc., a manufacturer of specialty chemicals owned by early venture capital firm J.H. Whitney & Co. After selling his venture-backed business to an international company, Morgenthaler decided to pursue venture capital investing on his own.

History of private equity and venture capital

Early history

(origins of modern private equity)

The 1980s

(leveraged buyout boom)

The 1990s

(leveraged buyout and the venture capital bubble)

The 2000s

(dot-com bubble to the credit crunch)

v t e

Morgenthaler shifted from a family partnership and began raising institutional funds in the early 1980s. Since its inception, Morgenthaler has worked with entrepreneurs in approximately 300 companies. David Morgenthaler[edit] In addition to his role in building a nationally focused venture capital firm, Morgenthaler also took a leadership role in establishing the legitimacy and potential of the nascent venture capital industry. He served from 1977 to 1979 as the President and then Chairman of the National Venture Capital Association (NVCA). During Morgenthaler's tenure at NVCA, he was called to testify before Congress in support of the capital gains tax reduction enacted in 1978. He was also involved in changing the ERISA legislation in 1979, allowing for pension funds to invest in private equity for the first time. (See also: Early history of private equity: Regulatory and tax changes) Morgenthaler was awarded the first National Venture Capital Lifetime Achievement Award in 1998 for his role in the emergence of the venture capital industry. Morgenthaler was inducted into the Private Equity Analyst's Venture Capital Hall of Fame. Earlier in his career, Morgenthaler was a member of the management team of several young growth companies. He received both a BS and a MS degree in mechanical engineering from the Massachusetts Institute of Technology in 1941. Morgenthaler died in June 2016, at the age of 96. He worked up until the very end, with his son noting that he was testing an app from his hospital bed. β€œAt age 96, almost 97, who does that?” his son said.[2] Investment funds[edit] Since the 1980s, when Morgenthaler began raising private equity funds from institutional investors in the early 1980s, the firm has raised over $2.8 billion of investor commitments.

1985 - Morgenthaler Venture Partners II - $ 30m 1989 - Morgenthaler Venture Partners III - $ 65m 1995 - Morgenthaler Venture Partners IV - $ 135m 1998 - Morgenthaler Venture Partners V - $ 300m 2000 - Morgenthaler Venture Partners VI - $ 575m 2001 - Morgenthaler Venture Partners VII - $ 850m 2005 - Morgenthaler Venture Partners VIII - $ 450m 2008 - Morgenthaler Ventures IX - $ 400m+

Historically, Morgenthaler funds have made both venture capital and leveraged buyout investments out of the same fund. In November 2008, Morgenthaler Ventures exceeded its fundraising goal and closed its ninth fund ( Morgenthaler Venture Partners IX) at slightly more than $400 million. MVP IX is the first Morgenthaler fund to focus solely on venture capital investments. By comparison, Morgenthaler Ventures was allocated approximately $315 million to invest in the previous fund.[3] In August 2013, General Partners Gary Little, Rebecca Lynn, and Gary Morgenthaler formed a new and separate firm called Canvas Venture Fund with an inaugural $175M early-stage IT-only fund. These three general partners continue to serve on the boards of their Morgenthaler portfolio companies, including Lending Club
Lending Club
(the fourth largest Internet IPO since 2001 behind Facebook, Twitter and Google), MuleSoft, Evernote, Doximity, etc. They were later joined by Paul Hsiao, a 10-year partner at NEA, in May 2014. Canvas was named the No.1 "VC Firm to Watch" by Forbes on their 2015 Midas List.[4] Investments[edit] Over the course of more than 40 years, Morgenthaler has made investments in over 300 companies across its venture capital and buyouts businesses. Notable past and present portfolio companies include: Siri, Evernote, Lending Club, NexTag, Practice Fusion, Ardian, Excelyx, Phillips and Temro, Avtron, OncoMed Pharmaceuticals, Cortina Systems, BlueArc, JasperSoft, Nominum, Peregrine Semiconductor, and Voltage Security. References[edit]

^ Robin Bellas (partner at Morgenthaler Ventures), Lecture to Stanford University Entrepreneurship Students, 2004-10-06 ^ Deboarh, Gage. "David Morgenthaler, One of Venture Capital's Founding Fathers, Dies at 96". Wall Street Journal. Retrieved 21 June 2016.  ^ Morgenthaler Ventures closes ninth fund on $400m Archived 2009-01-31 at the Wayback Machine.. November 2008 ^ https://www.forbes.com/sites/truebridge/2015/03/27/8-up-and-coming-midas-list-firms/

Further reading[edit]

David Morgenthaler, March 23, 2006 Venture Firms Worried Caution flags raised at annual conference, 1996 Smart Leaders: DAVID MORGENTHALER Morgenthaler closes seventh fund on $850m, August 2001. Morgenthaler Ventures Wraps Up 2006 With 3 IPOs and 2 Mega M&A Events Navigating Sand Hill Road, 2006 Investors turn away from Ohio as heavy use of tax dollars to woo jobs doesn't pay off. The Toledo Blade, 2006 Morgenthaler Ventures Profile (The Funded)

Why APIs Will Save Your Business From Getting Uber-ed MuleSoft Postpones IPO for More Funding at $1.5 Billion Valuation

External links[edit]

Morgenthaler (company website)

v t e

Private equity
Private equity
and venture capital investment firms

Investment strategy

Venture Growth Mezzanine Secondaries Leveraged buyout


History of private equity and venture capital Early history of private equity Private equity
Private equity
in the 1980s Private equity
Private equity
in the 1990s Private equity
Private equity
in the 2000s


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