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Venture Capital - Thursday, December 21, 2006

Morgenthaler VC Feels More Like I-Banker After $100M Buyout Deal

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The Wall Street Journal has an interesting profile today of Morgenthaler Ventures' Drew Lanza and his work with portfolio company Cortina Systems, a start-up chip maker in Sunnyvale. Morgenthaler had invested $3.7M in 2001. Lanza helped put together a deal to buy Intel's optical-networking components business for over $100M. Once the deal was completed Lanza described how he his phone started ringing off the hook from other VCs and execs of start-ups that wanted to be part of the roll-up. Given the poor state of the IPO market, Cortina came to be viewed as a source of liquidity. Lanza describes how his business description went from being a scout of small companies to something more akin to an investment banker.

Read - Venture Capital's New Adventure (WSJ)

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