2008 Headlines
Logitech to acquire SightSpeed Inc., a Big Red Ventures portfolio company
The acquisition is a significant exit for the Johnson School's Big Red Ventures
November 3, 2008 | Ithaca, NY | Big Red Ventures (BRV), an MBA student-run, early stage venture fund of the Johnson School at Cornell University, today announced that its portfolio company SightSpeed Inc. of Berkeley, CA, has agreed to be acquired by Logitech International (SIX: LOGN, Nasdaq: LOGI) for approximately $30 million in cash. The acquisition of SightSpeed, an award winning provider of high-quality video conferencing services, represents a significant milestone in the development of the student-run venture fund. The exit comes at an opportune time as BRV prepares to actively participate in subsequent rounds of investments. The acquisition is expected to close in November and is subject to typical closing conditions.
In early 2003, BRV's student managers saw tremendous potential in the Internet as a communications platform for multimedia, and invested in SightSpeed's ground breaking video conferencing technology developed at Cornell University. The proceeds from this exit will be funneled back into the fund for future investments.
"BRV managers have consistently shown discipline and expertise in diligently evaluating deals and their efforts have been validated by this exit," said David BenDaniel, the Don and Margi Berens Professor of Entrepreneurship at the Johnson School and faculty advisor to the fund. "MBA student managers apply their classroom educational experience in the day-to-day running of the venture fund. This is a result of the Johnson School's performance learning approach that provides experiential learning with a direct bearing on real businesses and communities. SightSpeed's acquisition validates the student-run venture process."
"Taking a leadership role in BRV is the best experience I've had at the Johnson School," said Matt Dacey, COO of BRV. "Historically, we see about 100 business plans annually and invest in only one. The opportunity to evaluate, structure, and negotiate real VC deals, while simultaneously growing BRV's presence in the VC community is unparalleled." Managers, who are second year MBA students drawn from different backgrounds, are involved in all aspects of the VC process, including deal sourcing , due diligence, term sheets, and the management of portfolio companies. The managers lead due diligence teams composed of first year student consultants. The process is rigorous with multiple decision levels, designed to not only ensure that the best businesses get funded, but also that managers and consultants get solid training and exposure to the venture capital process.
"The partnership that BRV has with the Cornell Center for Technology Enterprise and Commercialization (CCTEC) is an important component to BRV's growth as it exposes us to investment opportunities across the scientific community at Cornell," said Steve Peck, BRV's liaison to CCTEC. "In return, BRV's ability to provide CCTEC's scientific entrepreneurs access to capital and direct business feedback early in a company's lifecycle is an integral part to ensuring Cornell technologies such as SightSpeed are successfully commercialized." BRV focuses on connecting various members of the Cornell community and stimulating local entrepreneurship. SightSpeed is a prime example of effective partnership amongst the students of the business school, the engineering school, and CCTEC. BRV will continue to take an active role in finding and funding businesses developed at Cornell University.
About Big Red Ventures
Big Red Ventures (BRV) is an MBA student-run, evergreen, early stage venture fund of the Johnson Graduate School of Management at Cornell University. With over 7 portfolio companies spanning high-tech, healthcare, biotech and sustainable technologies, BRV's investments represent the cutting edge research at Cornell University. BRV is committed to promoting entrepreneurship at Cornell and in the local community. It has several partnerships with prominent angel VC groups in upstate New York and with bigger firms in the Northeastern region of the United States. For more information, visit www.johnson.cornell.edu/brv.
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Big Red Ventures Contact:
Roy L Ashok, Information & Marketing Manager, Big Red Ventures
rla58@cornell.edu
