Advanced Technology Ventures Announces ATV Investment Fund V Peaks $175 Million; Overwhelming Investor Interest Validates Firm's Unique Collaborative Approach.

WALTHAM, Mass. and PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 22, 1998--Advanced Technology Ventures (ATV), a leading venture capital firm focused on early-stage opportunities in the information technology and health care markets, announced today that its latest fund has attracted investment well in excess of the firm's original goal, topping $175 million. In addition, the firm is in the process of closing a $5 million ATV V Entrepreneurs Fund, intended for individuals who will help the firm evaluate prospective investments and work with existing portfolio companies.

The largest of ATV's investment funds to date, ATV V was heavily oversubscribed and brings ATV's total capital under management to well over $300 million. The enthusiasm for ATV V has been widely regarded as a sign of continued investor confidence in the firm's unique approach to venture capital investing and positions ATV to greatly enhance and expand its role in supporting promising entrepreneurial ventures over the coming years.

Off to a quick start with its latest fund, ATV also announced today that it has already committed funding from ATV V to seven promising new ventures in markets ranging from Internet and enterprise software to telecommunications services and health care. These promising new ventures include Application Networks, Coulter Cellular Therapies, DataSage, Garage.com, Linx Communications, Mosaic Technologies, and a yet-to-be-named early stage medical device company based in the mid-West (see separate release dated 10/22/98).

Keeping with its previous investment strategy, ATV said it plans to commit approximately 75 percent of the funds in ATV V to information technology markets, with the remaining 25 percent earmarked for health care and medical technology ventures. The bi-coastal firm, which has offices in California's Silicon Valley and along Boston's Route 128 Technology Corridor, will also seek to balance its funding choices geographically, splitting roughly 80 percent between these two U.S. technology hubs and the remainder targeted overseas.

Collaborative Approach Key to Success

Since its formation, ATV has helped more than 100 companies navigate from inception to market success, and along the way provided strong returns to its investors. The key to the firm's success has been its unique, collaborative, hands-on approach to venture capital investing. More than just financing, ATV works closely with entrepreneurs to help develop winning strategies and become leaders in their markets. The firm's ability to deliver this kind of value stems, in large part, from the General Partners' extensive direct operational and management experience in both public and private companies.

"At ATV, we understand that investment alone is not sufficient to ensure our portfolio companies achieve a leadership position in today's dynamic global marketplace," said Jos Henkens, ATV General Partner. "Rather, we are committed to supporting the ventures we fund through a collaborative process, bringing to bear the great depth of operational and management experience and broad global network of contacts that exist within our firm. It is this collaborative approach that distinguishes ATV and will keep us at the forefront of the commercialization of great technologies into the next century."

Active Approach Distinguishes Firm

The broad network ATV offers its portfolio companies is greatly extended by marshalling the resources and expertise from its exclusive team of Special Limited Partners (SLPs) - a group of world-renowned information technology and health care visionaries who offer a wealth of technical and market expertise. Among the SLPs are Robert Easton, managing director at The Wilkerson Group and director of CollaGenex Pharmaceuticals; Dr. Edward Frank, a co-founder and Executive Vice President at Epigram; Dr. Robert Sproull, co-author of a seminal book on interactive computer graphics; and Dr. Ivan Sutherland, founder of Evans and Sutherland, fellow at Sun Microsystems, and recipient of the prestigious Turing Award for Computer Science and the Smithsonian Lifetime Achievement Award. This group of world class experts provides additional insight on current market dynamics, future trends, and corporate and product strategies to ATV's portfolio companies.

Consistent with ATV's active investment approach, the firm also offers an "Entrepreneur-In-Residence" (EIR) program. This program allows entrepreneurs to work in ATV facilities side-by-side with ATV Partners, enabling the entrepreneurs to benefit from the firm's advice and counsel on a daily basis. "Leadership in a new market today requires first-mover advantage and an aggressive commitment to an idea before all the stars line up perfectly. ATV's EIR program is a proven mechanism for accelerating competitive advantage in this way," said Michael Frank, ATV General Partner.

Building on its twenty years of success, ATV has now entered a period of growth, as evidenced by the size of the firm's latest fund. In a sign of things to come, the firm has already begun to expand its health care practice, recently attracting Michael Carusi as Principal. Carusi, who joined the firm from Inhale Therapeutic Systems, is working with Partner Pieter Schiller and the firm's Special Limited Partners to expand the firm's long-standing practice in the medical device and health care markets. "Michael brings a wealth of experience to the health care field to ATV," said Schiller. "Together, we will continue to identify, cultivate and support the future leaders in technology-rich health care markets."

About ATV

Advanced Technology Ventures, founded in 1979, is a leading venture capital firm focusing on early stage opportunities in information technology and health care. ATV's management experience, technology expertise, global network of industry contacts and collaborative style has helped more than 100 companies navigate from inception to IPO and beyond.

With more than $300 million currently under management, ATV's investment philosophy centers on collaborative and active participation with the management teams of its portfolio companies.