That’s the word from Businessweek in a profile on Allegis Capital, a 12-year-old VC firm that’s put together an impressive track record. In July, 2008, Allegis sold Ribbit, a telecommunications provider it backed, to BT Group for $105 million. The year before, the firm unloaded computer security company IronPort Systems to Cisco Systems for $830 million. Allegis has reportedly sold a total of $2.1 billion in portfolio companies in the past six years, leading Robert R. Ackerman Jr., Allegis Managing Director and co-founder to remark, “Venture capital is not broken … Innovation is alive and well.”
Despite the slowdown in IPOs that we’ve commented on in this blog, a few small VC firms like Allegis continue to invest and proper. One reason might be Allegis’ strategy. Rather than raising huge amounts of capital and swinging for home runs, the firm has a $110 million fund that typically invests a few million dollars in startups and targets a 20% ownership stake, aiming for a few base hits instead.
During a quiet period early this year, when many venture capitalists were hoarding their cash, Allegis was part of a group that invested $10 million in IMVU, an online 3D community. And in March, it lead at $5.3 million investment in DriverSide, a Web site that helps car owners lower their costs, by recommending garages and expected payments for parts and services.
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