Observer » accel partners

Calling All Muppets: If You’re Planning to Dabble in Facebook Stock, We Want to Hear From You

Patrick Clark — Thu, 17 May 2012 11:20:20 -0400

As we noted earlier this morning, some of the retail brokerages fortunate to get their hands on Facebook allocations are apparently telling clients they're out of stock, i.e., you and Aunt Sally can forget about $38 a share and assume that whatever you wind up paying, you're going to be lining the pockets of investors smarter and richer and better than you.

Which begs the question: What the hell are you thinking?

Seriously. We'd like to hear from you.

The financial punditry has been banging out a Facebook-will-be-overpriced beat for so long, that developments like Zuck & Co. increasing the size of the offering or upping the price range can be a little startling. Who are these people clamoring for the stock, and why aren't they asking themselves this:

If shares allocated at the current $34-$38 price range are going to be reserved for the institutional investors (mutual funds, hedge funds, pension funds that generate fees for investment bankers);

And if the shares that do get allocated for people like you (perhaps 5 to 30 percent, depending on who you ask) typically wind up in the hands of brokerages' most preferred (read: fee generating) customers;

Then: who do you think you're buying the stock from?

Well. It could be the same institutional investors who were treated to first helpings and now stand to profit as you and your aunt touch grubby fingers to mouse pad and goose the People's Company to valuations liable to make the entire Fast Money team rasp and gasp their way to a collective heart attack. Or it could be the financial collossi: Tiger Global Management, which is selling 53.8 million shares in the offering, or Goldman Sachs, which is selling 66 million. Or else the VCs: Peter Thiel is selling 44.7 million shares, Accel Partners 201.4 million.

In any case, it may behoove some introspection: If you're buying from the smart money, does that make you...dumb?

Maybe not! Which is the great thing about this (capitalism, America, etc.): Facebook seems to add 100 million users every other month and maybe the naysayers are reading the wrong playbook. In case of which contingency we ask you, dear muppets, what do you know that the pundits don't? Please tell.

[Photo: Ross Hawkes]

FirstMark Capital Leads $6 M. Series B for OpenGamma

Mike Taylor — Mon, 17 Jan 2011 15:19:05 -0400

Today, New York venture capital makes its way across the pond, as FirstMark Capital leads a $6 million series B equity fundraising round for OpenGamma, a London-based financial technology firm that provides users with an open-source analytics and risk-management platform.

FirstMark also netted a board seat in the deal. The firm's founder and manager Lawrence D. Lenihan is pulling up a chair at OpenGamma's directors' table. He joins OpenGamma CEO David Wylie, Chartis Research's Peyman Mestchian and Bruce Golden, who represents Accel Partners. Accel was the lead investor on the company's $6 million series A.

Accel, a West Coast powerhouse, recently opened offices in New York, potentially signalling an eastward movement of technology venture dollars. Perhaps the next prime piece of real estate for tech venture capital is over in London.

(via TechCrunch)

mtaylor [at] observer.com | @mbrookstaylor

Accel Partners' 10 Greatest Hits

Mike Taylor — Wed, 12 Jan 2011 21:59:04 -0400

Venture capital giant Accel Partners announced today that it's setting up a New York office, an indication that it sees a bright future for the New York technology start-up scene.

The move offers hope to Silicon Alley's scruffy young CEOs. They too can join the pantheon of software greats that Accel has fostered over the years.

To get an idea of what may lay in store for our city's start-ups, take a look at Accel Partners' 10 Greatest Hits.

Is Accel's Arrival In Silicon Alley A Sign of Things to Come?

admin — Wed, 12 Jan 2011 21:55:53 -0400

There were a few stories this morning about the news that Accel Partners, one of the top three venture capital firms in the nation, is opening an outpost in New York.

But by and large there wasn't much comment from local VCs on the issue, until Lerer Ventures' Jordan Cooper raised the issue on Twitter:

How is my feed not blowing up with news of Accel opening NYC office? Top 3 firm in the country planting a flag here.

"Seems to me forgone conclusion all the top VCs will have offices in NYC in next 12 months," replied Founder Collective's Chris Dixon.

"True & awesome," chimed in Vinicius Vacanti, co-founder of Yipit.

Cooper elaborated on his thoughts in an email to The Observer. "I think they will be the #2 choice of every NYC entrepreneur raising a VC round after USV...they're top 3 in the world...it's a big deal. Hurts the Boston guys who are trying to plant flags here big time...out of towners are going to have a hard time competing on brand alone against the likes of Accel."

As Fred Wilson wrote this morning, finding money is no longer the challenge for talented New York start-ups. The tough part is taking the right money and finding the rare talent.

Check Out Accel Partner's Ten Greatest Hits >>