Crucible behind new $150m fund

An established Irish seed capital company is behind a new $150 million (€142.5 million) venture capital fund led by one of the leading players in the US venture capital industry. The Cross Atlantic Technology Fund (XATF) has taken a 51 per cent stake in the Dublin-based Crucible Corporation, a $25 million seed capital fund. It will now invest in emerging technology companies in the US, the Republic and Britain. XATF in the US will be headed by Mr Donald Caldwell, former president and chief operating officer of Safeguard Scientifics, a leading US venture capital company. He also led the formation of SCP Private Equity Partners, a $265 million late-stage venture investment fund established in 1997. His involvement in the XATF follows an approach from Crucible founder, Mr Gerry McCrory, who will now act as XATF managing director for Ireland.

Crucible is currently financed by a number of Irish investors, and under the arrangement the XATF will now have access to Crucible's existing investments, including right of refusal on second-round fundings. Its current investments here include Avatar Works, Interactive Enterprises, Automsoft and Openet Telecom. Three of these companies will seek second-round funding in the next few months.

According to Mr McCrory: "Each of these Irish-born firms has significant potential and we look forward to adding considerable value to them with our funding, strategic relationships, business expertise, and market reach."

A third of the fund has been supplied by the Governor of Pennsylvania, Mr Tom Ridge, from the state's largest public pension fund, the Public School Employees' Retirement System. Under US law each state is required to set aside between 1 and 5 per cent for private equity investment.

The fund will target early and mid-stage information technology companies, in particular European companies looking to expand into the US, and US companies seeking European partners.

In London, XATF will be headed by Ms Sheryl Daniels-Young, XATF's managing director. It has already completed its first two investments in Britain. They are Brainspark and Zeus Technology, a web server software company based in Cambridge.