Actua Corporation Was Obviously A Venture Capital Firm

Actua Corporation became a business investment capital business. During the dot com bubble, the business enjoyed a market place capitalization in excess of $50 billion. The organization was primarily called Internet Capital Group, Inc. and changed its identify to Actua Corporation in September 2014. In 2018, the corporation undergone liquidation.[1]

1 History 1.1 Incubator

1.2 Public Company

1.3 Winding downward


In March 1996, Ken Fox and Walter Buckley kept Safeguard Scientifics to make Internet Capital Group (ICG), a opportunity budget firm focused entirely on enterprise-to-business e-commerce.[2] They expected Safeguard Scientifics CEO Pete Musser for $5 mil in backing, but he was adamant on investment $15 thousand. In Buckley, overall and Fox elevated $40 zillion to begin ICG, double whatever they wished.

Along with Safeguard Scientifics, main investors involved Comcast, Compaq, BancBoston Ventures, along with a dozens people today.[2] Initially, the corporation was structured for a limited-culpability organization.[2]

Following the “keiretsu” unit utilised by Safeguard Scientifics, the company was seriously involved in the surgical procedures from the businesses in which it devoted and the begin-ups would work with the other, growing the value of all get-togethers.[2] Its once a year conferences were actually chances for CEOs of spouse businesses to talk about their ordeals and slice new specials. One new member CEO called it “an ideal approach to deal with turmoil.”[3] The task surroundings was relaxed, or as you companion business CEO named it, “almost like a fraternity”.[4]

Among ICG’s initial ventures had been a web site known as Water Online. Beneath the assistance of ICG, at the end of 1997, Water Online selected Mark Walsh, travel of AOL’s B2B department, as CEO. The firm altered its title to VerticalNet, improved into 47 different businesses, and have become one of the initial B2B businesses to become general population organization, even if with reduced revenue.[3]

Spurning prospects to purchase trusted online retailers such as CDNow and AutoWeb, ICG designed a standing as “the VCs to find out if you were an online marketer which has a B2B concept.”[3] In July 1998, GE venture capital – Visit Chubun, invested in the company in the finance round that developed $70 thousand. Early investments started out to settle and ICG produced more capital by promoting some of its locations.[2]

However, compared with traditional business capitalists, Buckley and Fox created that ICG would have most of its assets for few years or for a longer time. The duo had been committed, hoping to get a stake in 80Per cent of your B2B current market. Inside the fall of 1998, to compliment this target, the business assertively selected best expertise from businesses including Microsoft, McKinsey And Co., General Electric, Cambridge Technology Partners, Heidrick & Struggles, and Softbank. After considerably hard work, Fox persuaded Sam Jadallah, Microsoft’s key of endeavor revenue and promotion, to participate in the organization.[3] In February 1999, the firm changed into a C business. In May, $90 zillion of extra funds was heightened via a convertible car connect issue.

Public Company[modify]

In August 1999, the business was a general population business by using an original general public featuring, giving 14.9 zillion gives at $12 for every write about. The organization marketed yet another 7.5 thousand reveals to IBM, building a lot more than $200 mil.[2][5] Dell Computer bought 1 mil with the gives you within the IPO. High-report shareholders now integrated Amerindo Investment Advisors, the House of Saud, the Penske loved ones, and David Bonderman. Safeguard Scientifics was the biggest stakeholder.[3]

At the time of the IPO, ICG performed stakes in 35 businesses.[5] About 50 % the companies directed to make both an on-line market or social network, although the other half ended up involved in application creation.

The inventory tripled in rate on its very first day, and hit $50 for every be part of October 1999.[2] Book price of the corporation, which include stakes in VerticalNet and U.S. Interactive which had removed community, was just about $1 billion dollars and Wall Street was betting on potential accomplishment.[3]

By December 1999, the store was forex trading in excess of $200 every share. Buckley’s stake of 10 million shares, or 3.5Per cent in the firm and Fox’s risk of 12 zillion gives you, or 4.5Per cent with the business, were definitely each well worth in excess of $2 billion.[6] The business was worth nearly $60 billion dollars, allowing it to be the 3rd largest Internet business by sector capitalization regarding AOL and Yahoo! . By then, the business got spent $300 million in 39 get started-ups and had a workers of 29 individuals to cope with and advise individuals organizations. Operations were split into two destinations with Buckley becoming CEO and operating right out of the Philadelphia place, while Fox mastered West Coast business in San Francisco. Three management were recruited in November to head a fresh European staff.[4]

In December 1999, the firm elevated in excess of $1 billion in added capital.[7][2] During its initially 9 a few months like a institution, it discovered only $14.8 thousand of sales and dropped $6.4 zillion. In 1998, it recorded a return of $14 zillion on $3 zillion of revenue, with all the gains received from income of providers.[3]

By February2000 and 1, the share possessed declined just about $100 per share in anticipations of insider promoting at the expiration of your locking mechanism-up time period. Store buyers bought up specialized gives, stabilizing the cost.[2] Meanwhile, the business continuing to grow its investment opportunities. The corporation had devoted $1.4 billion in 61 begin-up companies, and was forging new partnerships with ancient financial state leaders.[8] The speedy expansion was commited with what Fox known as “the greatest riches-production prospect the planet has experienced” – choosing the encouraging e-trade B2B organizations well before someone else.[4]

The NASDAQ Composite stock market list peaked in March 2000 along with the business was damage through the bursting with the dot-com bubble. Its supply was to $40 a discuss and GE Capital lodged to dispose of close to 1 thousand shares, by Apr 2000. The supply was as a result of $30 per talk about, by June 2000. Buckley, who distributed minimal of his supply, continued to be optimistic.[2] By November 2000, the store was right down to $11 for each share[9] and right after the September 11 assaults it exchanged for 70 cents in each promote.[2] 2 yrs following its top in March 2000, the company experienced a current market capitalization of $200 million, down 99.5%.[10]

The firm survived the accident, and altered its business design. Rather than consuming modest stakes in numerous corporations, it spent in some “center” corporations at a time, typically as largest percentage proprietor. This authorized the company to own very much significantly greater control of the business of its ventures. Buckley refocused the business to find focused partnerships with regular field executives like a joints project with DuPont known as CapSpan during the early 2000.[8] ICG marketed to Manhattan Associates[11] for $20 million in 2003.

Winding down[edit]

In February 2013, the business offered for sale its stake in Channel Intelligence to Google for $60 thousand in cash.[12] By December, the organization distributed Procurian to Accenture for $375 million.[13]

In September 2014, whenever the organization evolved its label to Actua Corporation, its share was forex trading close to $20 per talk about and was truly worth about $700 million.[10] In October 2016, the business distributed Govdelivery to Vista Equity Partners for $153 million.[14] December of your following year, the company sold its hobbies and interests in VelocityEHS and Bolt Solutions for $328 mil.[15]

In January 2018, this company available FolioDynamix for world wide web proceeds of $166.3 zillion.[16] That exact year or so, the corporation underwent liquidation.[1]

^ a b “Actua 8-K”. U.S. Swap and Securities Commission. April 18, cite.citationfont-fashion: .citation qinsurance quotes: “””””””‘””‘”.mw-parser-output .id-locking mechanism-cost-free a,.mw-parser-outcome .citation .cs1-secure-totally free abackdrop-photo: website url(“// friendly.svg/9px-Lock-earth-friendly.svg.png”)back ground-appearance: linear-gradient(obvious,translucent),website(“// friendly.svg”)track record-recurring: no-repeatbackground-measurements: 9pxbackground-placement: right .1em .identification-locking mechanism-constrained a,.mw-parser-output .identification-secure-signing up a,.mw-parser-output .citation .cs1-fasten-restricted a,.mw-parser-outcome .citation .cs1-secure-enrollment abackground-graphic: website url(“//”)background-picture: linear-gradient(transparent,translucent),link(“//”)history-do it again: no-repeatbackground-size: 9pxbackground-situation: perfect .1em .identification-lock-subscription a,.mw-parser-yield .citation .cs1-secure-membership ahistory-picture: link(“//”)backdrop-image: linear-gradient(translucent,translucent),link(“// colored-alt-2.svg”)track record-repeat: no-repeatbackground-size: 9pxbackground-place: correct .1em .cs1-monthly subscription,.mw-parser-output .cs1-registrationcoloration: .cs1-membership span,.mw-parser-output .cs1-enrollment spanborder-bottom part: 1px dottedcursor: .cs1-ws-symbol atrack record-picture: website url(“// logo.svg/12px-Wikisource-logo design.svg.png”)qualifications-photo: linear-gradient(transparent,transparent),website url(“// logo.svg”)backdrop-duplicate: no-repeatbackground-measurements: 12pxbackground-location: proper .1em computer code.cs1-policycolor: inheritbackground: inheritborder: inheritpadding: .cs1-invisible-problempresent: nonefont-measurement: .cs1-obvious-mistaketypeface-sizing: .cs1-maintdisplay screen: nonecolor: #33aa33margin-left behind: .cs1-registration,.mw-parser-output .cs1-subscription,.mw-parser-production .cs1-structuretypeface-size: 95Per .cs1-kern-left,.mw-parser-result .cs1-kern-wl-remainingpadding-left behind: .cs1-kern-proper,.mw-parser-yield .cs1-kern-wl-correctsupport-appropriate: .citation .mw-selflinktypeface-pounds: inherit

^ a b c d e f g h i j k Serwer, Andy (September 17, 2001). “Following The Money Some 680 females, techies and men and, yes, institutions received pre-IPO shares of Internet highflier ICG. Here’s how they grew to become insiders and whatever they do because the supply crashed”. Fortune.

^ a b c d e f g Schonfeld, Erick (September 27, 1999). “A 1-Stock Approach to Have Fun Playing The Net Here’s an exclusive initial check out the company professionals feel is the most suitable poised to capitalize on the Net’s upcoming significant wave: business-to-online business 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 benefits”. CNET. August 5, 1999.

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

^ “Internet Capital Group Announces Massive Financial debt and Inventory 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 identity for an organization 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 discharge). 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 Finishing Sale of Bolt and VelocityEHS Solutions” (Press launch). Globe Newswire. December 12, 2017.

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