New Enterprise Associates
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| Type | Private |
|---|---|
| Industry | Venture capital |
| Founded | 1978 |
| Founder(s) | Richard C. Kramlich, Chuck Newhall, Frank Bonsal |
| Headquarters | Sand Hill Road Menlo Park, California |
| Products | Private equity |
| Total assets |  $11 billion |
| Website | www.nea.com |
New Enterprise Associates (NEA) is an investment firm focused on venture capital and growth equity investments. With approximately $11 billion in committed capital, NEA is among the largest venture firms.[1] The firm invests in three broad industry sectors: information technology, health care, and energy technology, with investment professionals allocated to each industry. NEA invests in companies in various stages of development.
NEA employs more than 40 investment professionals. The firm is headquartered in Menlo Park, California with offices in the suburbs of Washington, D.C. as well as Bangalore, Mumbai, Beijing and Shanghai.
Since its founding, NEA invested in over 650 companies, of which more than 170 have gone public and more than 280 have been sold.[2] Among the firm's investments are 3com, CareerBuilder, Diapers.com, Juniper Networks, The Learning Company, Macromedia, Salesforce.com, SMIC, TiVo, Vonage, WebMD, in Groupon and Gilt Groupe.
History[edit]
The firm was founded in 1978 by Richard C. (Dick) Kramlich, Chuck Newhall and Frank Bonsal.[3] Kramlich had worked with noted venture capitalist Arthur Rock beginning 1969 and Frank Bosnal had been an investment banker at Alex. Brown & Sons where he focused on IPOs for startup companies.[3] Chuck Newhall had previously managed an investment fund for T. Rowe Price in the 1970s. The firm was founded with offices on both the East Coast and the West Coast. Among the firm's first investments was 3Com, which NEA backed along with Mayfield Fund and Jack Melchor in 1981.[4]
The first NEA investment fund had only $16 million of capital. The firm's second fund raised $45 million and the third fund collected $125 million of commitments from investors in 1984. The firm continued to grow steadily throughout the 1980s and early 1990s raising $900 million from 1987 through 1996 across NEA's next four funds.[3] Beginning with NEA-8 in 1998, the firm greatly increased the size of its investment funds. NEA's tenth fund had $2.3 billion of investor commitments in 2000 just prior to the collapse of the dot-com bubble.[5] After raising a more modest $1.1 billion in 2004 for the firm's eleventh fund, NEA was able to raise $2.3 billion and $2.5 billion for its next two funds, respectively.[6] In 2010, NEA launched its thirteenth investment fund with $2.5 billion of investor capital.[5]
References[edit]
- ^ Gutsy venture firm New Enterprise Associates brings home results. VentureBeat, January 4, 2007
- ^ NEA - History (Company Website)
- ^ a b c Gupta, Udayan. Done Deals: Venture Capitalists Tell Their Stories. Richard Kramlich - New Enterprise Associates
- ^ Pelkey, James. Entrepreneurial Capitalism and Innovation: A History of Computer Communications 1968-1988
- ^ a b Source: Preqin[clarification needed]
- ^ New Enterprise Associates closes new $2.5 billion fund. Silicon Valley Business Journal, July 23, 2006
- Lohr, Steve. Venture Capital: Looking for Stars. New York Times, December 24, 1992
- Venture Capitalist Dick Kramlich's Last Stand. Business Week, January 21, 2010
- $2.5 Billion in Search of an Exit. New York Times DealBook, July 12, 2006
- Primack, Dan. NEA: The VC World's best-kept secret. Fortune, November 7, 2011
External links[edit]
- New Enterprise Associates (company website)
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