Scott Tobin, a general partner at Battery Ventures, spoke at the
Argyle
Executive Forum's Leadership in Venture Capital conference on
international investing and the IPO market in the second half of 2007.
Battery closed its latest investment fund in July with $750 million and
between $60 million and $100 million of it is devoted to investing in Israeli
startups. Tobin says that innovation is the driver of the venture economy, and
Israel has consistently delivered cutting edge technology.
Meanwhile, the firm also is active in India, where it has invested in a few
companies but Tobin expects Battery to have its "feet on the ground" there
within a couple of years. In regards to China, Battery is taking a long-view
approach, choosing to let other venture firms go in first and see what
happens. Tobin feels that if Battery doesn't go into China within the next six
years it probably won't at all.
In the first half of the year, Battery was on a tear as it
racked
up exits and
closed
its new fund, but Tobin's take on the IPO market in the second half of the
year is that "it was good, now it sucks." In spite of this, Tobin feels you
can take a good company public in a bad market while companies with weaker
prospects will have a tough time. He expects that the next six months will be
relatively quiet for small-cap stock offerings; although corporate M&A may
pick up if valuations fall. —George White
See
The Deal's July 7 story on Battery's $750 million fund
See
July 7 VC Ratings post on Battery's exits
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