Aberdeen Identifies Emerging Third Generation Venture Marketplace.

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--Nov. 13, 2000

In a report released today, Aberdeen Group identified the rise of a new Third Generation Venture (3GV) community, which includes technology operating companies, incubators, accelerators, and venture catalysts. The 3GV community provides capital and services to early-stage companies that are operating under the radar of traditional venture capitalists and "over the heads" of individual or affiliated angel investors.

"Investors and entrepreneurs welcome the return of fundamentals to the company formation endeavor," says Ed Black, Senior Vice President of Private Equity Services and co-author of the report. "A more serious 3GV market encourages the shake-out and exits of the `investment clubs' and `three guys with six business cards.' Customers, profits, and sound businesses and technologies will prevail over buzz, cash burn, and quick-pop liquidity events."

"Third Generation Venture: A New Value Proposition for Entrepreneurs and Investors," is the newest edition of Aberdeen's ongoing investment report series and evaluates major trends and business models in the 3GV marketplace. Drawing from Aberdeen's extensive market surveying, the report:

--Profiles 39 early movers ( their investments, philosophies, portfolios, key executives, services, business models, and deal structures;

--Maps incubators, accelerators, and technology operating companies against other investment models;

--Supplies information for startups seeking the right incubator; and

--Presents insights for developing partnerships between corporations, service providers, venture capital firms, and incubators.

3GV Companies profiled are Acacia Research Corporation; Anila Corporation; Brightspark; Cambridge Incubator; campsix; Catalyst Capital; Cenetec, LLC; CMGI (CMGI); DigitalVentures; Divine interVentures, Inc. (DVIN); Doublespace; eCompanies; econception; eHatchery; FrontLine Capital Group, Inc.; Gazellelab; ideaEDGE Ventures, LLC; Ideas Hub; idealab!; i-group HotBank NE LLC; Innovation Factory; Internet Capital Group (ICGE); Internet Incubator plc; Internet Venture Works, Inc; iStart Ventures; katalyst; Mediant Technology Partners, LLC; NetCatalyst; 100x; Reach Internet Incubator, LLC; Rebar Foundry; Redleaf Group, Inc.; Safeguard Scientifics, Inc. (SFE); Startups.com; Stonepath Group (STG); Venture Frogs, LLC; VenturePlex; VentureSurf.com, Inc.; and Wingspring.

For more information about "Third Generation Venture: A New Value Proposition for Entrepreneurs and Investors," visit or call [phone].

About Aberdeen

Aberdeen Group is a leading provider of technology market consulting and research. Steeped in technology and armed with end-user field research, Aberdeen answers clients' critical business and technology questions in the context of the Internet economy and across the product life cycle. Founded in 1988, Aberdeen is headquartered in Boston, Massachusetts, and has research centers in Palo Alto, California; Ft. Collins, Colorado; and Amsterdam, the Netherlands. Aberdeen is located on the Web at www.aberdeen.com.