Actua Corporation Became A Venture Capital Firm

Actua Corporation was obviously a opportunity investment capital strong. While in the dot com bubble, the corporation possessed a sector capitalization of more than $50 billion. The business was actually generally known as Internet Capital Group, Inc. and evolved its label to Actua Corporation in September 2014. In 2018, the company undergone liquidation.[1]

1 History 1.1 Incubator

1.2 Public Company

1.3 Winding decrease


In March 1996, Ken Fox and Walter Buckley left behind Safeguard Scientifics in order to create Internet Capital Group (ICG), a enterprise budget agency concentrated on company-to-business e-trade.[2] They expected Safeguard Scientifics CEO Pete Musser for $5 million in money, but he was adamant on investment $15 million. In Fox, entire and Buckley raised $40 mil to begin ICG, twice the things they wished.

Besides Safeguard Scientifics, main purchasers incorporated Comcast, Compaq, BancBoston Ventures, and also a dozen men and women.[2] Initially, the firm was arranged like a limited-liability organization.[2]

Following the “keiretsu” design used by Safeguard Scientifics, the firm was seriously in the functions of the companies that it put in as well as the begin-ups would work with the other, escalating the cost of all get-togethers.[2] Its twelve-monthly gatherings ended up opportunities for CEOs of spouse businesses to talk about their encounters and reduce new deals. One new member CEO named it “a perfect way to deal with chaos.”[3] The project atmosphere was typical, or as you companion firm CEO termed it, “almost like a fraternity”.[4]

One among ICG’s very first investments was a website known as Water Online. Underneath the information of ICG, in late 1997, Water Online selected Mark Walsh, travel of AOL’s B2B department, as CEO. The company altered its identity to VerticalNet, broadened into 47 several businesses, and became the first B2B providers to become a consumer organization, even though with restricted cash flow.[3]

If you are an businessperson which has a B2B strategy.”[3] In July 1998, GE Money committed to the business inside of a loans round that made $70 million,

Spurning opportunities to invest in online retailers like CDNow and AutoWeb, ICG designed a track record as “the VCs to view. Early investment opportunities set about to get rid of and ICG generated further resources by marketing a number of its locations.[2]

However, contrary to standard business capitalists, Buckley and Fox imagined that ICG would store nearly all of its assets for few years or for a longer time. The duo ended up committed, seeking to have a stake in 80% with the B2B industry. In the fall season of 1998, to help with this intention, the company assertively hired top notch talent from companies such as Microsoft, McKinsey & Co., General Electric, Cambridge Technology Partners, Heidrick & Struggles, and Softbank. After a lot efforts, Fox persuaded Sam Jadallah, Microsoft’s key of organization gross sales and marketing, to sign up with the business.[3] In February 1999, this company converted to a C company. In May, $90 zillion of extra financing was raised via a convertible car connection problem.

Public Company[alter]

In August 1999, the firm was a public organization by using an very first general public supplying, supplying 14.9 million gives you at $12 per talk about. The firm available yet another 7.5 million gives to IBM, generating much more than $200 million.[2][5] Dell Computer got 1 thousand of your shares in the IPO. High-report shareholders now added Amerindo Investment Advisors, the House of Saud, the Penske household, and David Bonderman. Safeguard Scientifics was the biggest stakeholder.[3]

Before the IPO, ICG performed stakes in 35 providers.[5] About 50 % the enterprises focused to generate either a web-based marketplace or social network, even though the other half were actually involved in computer software development.

The supply more than doubled in selling price on its initially working day, and hit $50 each share in October 1999.[2] Book price of the organization, including stakes in VerticalNet and U.S. Interactive which had went open public, was just about $1 billion and Wall Street was gambling on upcoming achievement.[3]

By December 1999, the store was investing in excess of $200 each reveal. Buckley’s stake of ten million offers, or 3.5Per cent from the provider and Fox’s risk of 12 zillion offers, or 4.5Per cent of your company, had been each one worthy of in excess of $2 billion dollars.[6] The corporation was worth almost $60 billion, turning it into the 3rd largest Internet business by market place capitalization powering AOL and Yahoo! . At that time, the firm possessed invested $300 zillion in 39 get started-ups along with a team of 29 men and women to take care of and suggest the businesses. Operations ended up divided into two areas with Buckley becoming CEO and operating right out of the Philadelphia vicinity, when Fox mastered West Coast business in San Francisco. Three management were actually appointed in November to go a completely new European crew.[4]

In December 1999, the business increased above $1 billion dollars in supplemental budget.[7][2] During its initial 9 several weeks as a corporation, it came to the realization only $14.8 mil of profits and lost $6.4 million. In 1998, it documented revenue of $14 zillion on $3 thousand of profits, using the gains originating from sales of businesses.[3]

By February1 and 2000, the supply possessed declined nearly $100 for every be part of anticipations of specialized reselling with the expiry from the secure-up timeframe. Retail store traders acquired up specialized gives you, stabilizing the price.[2] At the same time, the corporation carried on to expand its investment strategies. The business experienced put in $1.4 billion in 61 begin-up organizations, and was forging new relationships with ancient economic system managers.[8] The accelerated expansion was motivated with what Fox called “the greatest money-production chance the whole world has experienced” – choosing the guaranteeing e-business B2B providers prior to someone else.[4]

The NASDAQ Composite stock exchange index peaked in March 2000 and also the firm was injured because of the bursting of the dot-com bubble. By April 2000, its inventory was into $40 a share and GE venture capital sent in to sell nearly 1 zillion gives. The store was as a result of $30 each reveal, by June 2000. Buckley, who offered for sale hardly any of their own inventory, continued to be confident.[2] By November 2000, the carry was to $11 every talk about[9] and as soon as the September 11 problems it traded for 70 cents for each share.[2] A couple of years soon after its peak in March 2000, the business possessed a industry capitalization of $200 thousand, lower 99.5Percent.[10]

The firm made it through the collision, and modified its enterprise model. Rather than getting tiny stakes in most businesses, it sunk in certain “key” companies each time, generally as largest percentage proprietor. This authorized the corporation to possess a great deal better control of the procedures of their ventures. Buckley refocused the corporation to find tactical relationships with typical business market leaders such as a joints endeavor with DuPont termed CapSpan at the begining of 2000.[8] ICG distributed to Manhattan Associates[11] for $20 million in 2003.

Winding decrease[edit]

In February 2013, the company offered its risk in Channel Intelligence to Google for $60 million in profits.[12] By December, this company distributed Procurian to Accenture for $375 mil.[13]

In September 2014, as soon as the business transformed its title to Actua Corporation, its supply was forex trading all over $20 every write about and was really worth roughly $700 zillion.[10] In October 2016, the firm available Govdelivery to Vista Equity Partners for $153 mil.[14] December with the following 12 months, this company offered for sale its pursuits in Bolt and VelocityEHS Solutions for $328 million.[15]

In January 2018, the organization offered FolioDynamix for world wide web proceeds of $166.3 zillion.[16] That very same season, the firm underwent liquidation.[1]

^ a b “Actua 8-K”. U.S. Securities and Exchange Commission. April 18, cite.citationfont-design: .citation qrates: “””””””‘””‘”.mw-parser-result .id-lock-no cost a,.mw-parser-outcome .citation .cs1-fasten-totally free abackground-graphic: link(“// friendly.svg/9px-Lock-environmentally friendly.svg.png”)backdrop-appearance: linear-gradient(transparent,transparent),website url(“//”)background-replicate: no-repeatbackground-sizing: 9pxbackground-place: ideal .1em .id-lock-reduced a,.mw-parser-output .id-lock-signing up a,.mw-parser-outcome .citation .cs1-lock-reduced a,.mw-parser-result .citation .cs1-secure-registration abackdrop-appearance: web address(“//”)qualifications-picture: linear-gradient(obvious,translucent),link(“//”)backdrop-do it again: no-repeatbackground-sizing: 9pxbackground-position: proper .1em .id-lock-subscription a,.mw-parser-production .citation .cs1-lock-registration abackdrop-impression: link(“// colored-alt-2.svg/9px-Lock-red-colored-alt-2.svg.png”)back ground-impression: linear-gradient(obvious,obvious),website(“//”)back ground-repeat: no-repeatbackground-measurement: 9pxbackground-place: right .1em .cs1-monthly subscription,.mw-parser-yield .cs1-enrollmentcolors: .cs1-subscription span,.mw-parser-production .cs1-sign up periodedge-bottom part: 1px dottedcursor: .cs1-ws-symbol abackground-picture: web address(“// logo.svg/12px-Wikisource-logo design.svg.png”)back ground-photo: linear-gradient(clear,translucent),website url(“//”)backdrop-recurring: no-repeatbackground-sizing: 12pxbackground-position: correct .1em policy.cs1-program codeshade: inheritbackground: inheritborder: inheritpadding: .cs1-invisible-errorscreen: nonefont-measurement: .cs1-noticeable-mistaketypeface-measurement: .cs1-maintscreen: nonecolor: #33aa33margin-kept: .cs1-monthly subscription,.mw-parser-production .cs1-sign up,.mw-parser-output .cs1-set uptypeface-measurements: 95Per .cs1-kern-eventually left,.mw-parser-production .cs1-kern-wl-keptsupport-left: .cs1-kern-right,.mw-parser-result .cs1-kern-wl-rightsupport-correct: .citation .mw-selflinktypeface-excess weight: inherit

^ a b c d e f g h i j k Serwer, Andy (September 17, 2001). “Following A Money Some 680 guys, females and techies and, indeed, schools obtained pre-IPO gives of Internet highflier ICG. Here’s how they became insiders and the things they does when the supply crashed”. Fortune.

^ a b c d e f g Schonfeld, Erick (September 27, 1999). “A 1-Stock Approach to Play The Net Here’s a special very first look into the company analysts consider is most beneficial ready to capitalize on the Net’s next huge wave: small business-to-company e-trade. Internet Capital has stakes in 36 hot B2B startups”. Fortune.

^ a b c Barrett, Amy (November 1, 1999). “Internet Capital’s Young Turks”. Bloomberg L.P.

^ a b “IPO Roundup: Internet Capital Group flies in debut, Mission Critical also profits”. CNET. August 5, 1999.

^ Simon, Ruth (January 29, 2001). “1. IPOs Can Make You Rich”. The Wall Street Journal.

^ “Internet Capital Group Announces Massive Stock and Debt Offerings”. The Wall Street Journal. December 16, 1999.

^ a b Barrett, Amy (May 15, 2000). “Walter Buckley III”. Bloomberg L.P.

^ “The $1.7 trillion class”. CNN. November 9, 2000.

^ a b DiStefano, Joseph N. (September 6, 2014). “Actua: New identify for a company with clean expectations”. The Philadelphia Inquirer.

^ “Manhattan Associates Acquires”. Supply & Demand Chain Executive. Retrieved 2018-11-12.

^ Lundgren, Ingrid (February 6, 2013). “Google Acquires Channel Intelligence for $125 Million”. TechCrunch.

^ “ICG Group Announces Completion of Sale of Procurian to Accenture for $375 Million” (Press relieve). Globe Newswire. December 5, 2013.

^ “Actua Announces Finishing of Sale of GovDelivery to Investor Group Led By Vista Equity Partners for $153 Million in Cash” (Press release). Globe Newswire. October 19, 2016.

^ “Actua Announces Successful Completion of Sale of VelocityEHS and Bolt Solutions” (Press discharge). Globe Newswire. December 12, 2017.

^ “Actua Announces Completing Sale of FolioDynamix” (Press generate). Globe Newswire. January 2, 2018.