Advanced Technology Ventures Announces $800 Million Fund to Invest in Emerging IT and Healthcare Technology Companies; ATV Selects First Portfolio Companies of Fund VII.

Business/Technology Editors

PALO ALTO, Calif. & WALTHAM, Mass.--(BUSINESS WIRE)--Dec. 24, 2001

Advanced Technology Ventures (ATV), a leading bi-coastal, early-stage venture capital firm, announces the closing of ATV VII, an $800 million venture capital fund. As with its prior funds, ATV will invest this new capital in early-stage technology companies focused in the communications, Internet infrastructure, software, and healthcare markets primarily in the United States, with select investments in Canada, Europe and Israel. The new fund is double the size of ATV VI and represents the firm's largest fund to date, bringing the firm's total assets under management to $1.5 billion.

"While the climate for raising new venture capital funds has deteriorated substantially over the past year, we are very gratified by the enthusiastic response to our new fund among the institutional investor community. We received excellent support from our current investors, with more than 90 percent returning to the new fund. In addition, a number of new, high-quality investors have joined and represent approximately 40 percent of Fund VII," said ATV General Partner Jos Henkens. "The commitments from both our existing and new limited partners serve as strong validation of the value of our hands-on investment philosophy and history of success."

ATV has a 22-year legacy of identifying promising technology and healthcare companies in the U.S., and supporting the growth of those companies through the firm's extensive domain expertise and operational experience, as well as its collaborative approach to building world-class teams. "Our strategy has always been to combine real-world experience, domain expertise and capital to help turn promising start-up ventures into world-class companies; and this back-to-basics approach has never been more valuable than it is today," added Henkens.

Successful Investments and Strategic Expansion

To date, ATV VII has invested in two companies: Redline Networks, an Internet infrastructure company that seamlessly optimizes web performance; and Bergana Communications, which designs and supplies semiconductor solutions for wireless communications applications. ATV's current portfolio includes many emerging technology leaders including Ardais, Coppercom, Docent, Innovance Networks, Intransa, Liquid Engines, MicroVention, Optobionics, Peakstone, Tripwire, Upshot and Xevo.

"We are very pleased to have the support of a sterling firm like Advanced Technology Ventures," said Faye Pairman, CEO Redline Networks. "Their collaborative style and deep operational experience provides insightful guidance to our executive team."

In addition, ATV recently announced that it has expanded operations into Canada. A new venture partner, Brian Hanson, was appointed to focus on investments in the several regions of Canada - Ottawa, Toronto, Waterloo and Montreal - that have emerged as important centers of technology innovation, especially in the areas of communications, wireless, semiconductors and software. ATV made its first investment in Canada late last year in Innovance Networks, an optical networking company.

Since its inception, ATV has consistently ranked among the top VC firms. Notable past successes include RF MicroDevices, Cytyc, TranSwitch, Actel, Credence Systems, and Epigram. ATV's seven partners bring together nearly a century of domain specific operational experience to help guide their portfolio companies from inception to viability. Additionally, ATV's technology partners provide the portfolio companies with qualified, leading edge technical and marketing expertise in their respective industries.

About Advanced Technology Ventures

Founded in 1979, Advanced Technology Ventures (ATV) is a leading venture capital firm whose management experience, technology expertise, global network of industry contacts and collaborative style has helped more than 120 companies navigate from inception to IPO and beyond. With approximately $1.5 billion of committed capital, its portfolio includes investments in the areas of communications, Internet infrastructure, software and services, and healthcare. ATV's investment philosophy centers on collaborative, active participation with the management teams of its portfolio companies.