Industry Ventures was initially formed in 2000 to make seed-stage investments in start-up technology companies. When the NASDAQ collapsed shortly after we had completed our first direct investments, the venture business entered a very difficult liquidity period. In 2001, we recognized an investment opportunity as the result of this market challenge and shifted our investment strategy to focus on secondary investments in venture-backed companies.
Our first secondary investment was the purchase of shares in Speedera Networks from a publicly-traded corporation. Speedera Networks was acquired years later by Akamai in 2005.
Several months after our first secondary investment, the firm acquired the venture capital division of Electronic Data Systems (EDS). Over the period from 2002-2004, the firm acquired over $200 million of invested capital from various sellers of venture capital portfolios including Bowman Capital, Enron Broadband Ventures and Infospace. This investment activity was instrumental in the early formation of the secondary market for venture capital investments.
In 2009, we launched our fund of funds effort with the acquisition of Little Hawk Capital Management. We were fortunate to invest in a number of small venture capital funds with high-multiple potential. We subsequently built a portfolio of over several dozen small, leading, early-stage venture capital funds which spawned direct co-investment opportunities for our firm. Some of their underlying investments included Facebook, Instagram, Isilon, Pandora, Twitter, Uber and Zynga.
Today, Industry Ventures manages over $4 billion of assets under management, focusing exclusively on the venture capital asset class. Our experienced team of 29 professionals has built a broad portfolio of investments and maintains strong relationships with venture capital firms, company management teams, and technology entrepreneurs. Since 2014, Preqin has named Industry Ventures as a top US “Consistent Performing Manager for Secondary Funds and Fund of Funds.”