& cplSiteName &

Cable Vets Launch VC Firm

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
12/22/2008
50%
50%

Instead of joining forces to create, develop, and grow a single new company, three cable veterans with deep technology and business ties have decided to apply their collective knowledge toward the funding of a wide range of early stage startups.

Jeffrey Binder, Vin Bisceglia, and David Fellows, whose combined executive and entrepreneurial experience span both the vendor and the cable operator arenas, founded Genovation Capital LLC , a new venture capital firm, during the summer and are now seeking the next big thing in the communications industry.

Binder, many might recall, founded Broadbus Technologies, a video server acquired by Motorola Inc. (NYSE: MOT) in 2007 for nearly $200 million. (See Motorola Scoops Up Broadbus.)

Bisceglia, the former chairman and CEO of Broadbus, ran regional metro optical services player Neon Communications from 1998 to 2000 and took telecom equipment supplier TSG Inc. public.

Fellows, meanwhile, most recently served as the chief technology officer of Comcast Corp. (Nasdaq: CMCSA, CMCSK), a role that also got him involved in Comcast Interactive Capital , the MSO’s venture arm. Among other recent moves, Fellows also served as principal for Pilot House Ventures .

The investment “theme” of the new, Waltham, Mass.-based VC is centered on the media, communications, and Internet sectors, a combination that “amounts to a second wave of the Internet,” according to Binder.

For Genovation, that will mean sprinkling its attention on a relatively wide swath of technology areas, including entertainment downloads, media management, social networking, targeted advertising, massively multiplayer gaming, cloud computing, and advanced storage systems, to name but a few.

“The fund is certainly more than cable by any stretch,” notes Binder.

But Genovation does plan to invest in ventures that are targeted to cable MSOs and other broadband carriers that happen to operate vast, legacy systems. The firm believes its experience will help, because “it’s difficult for young companies to navigate telco and cable,” Bisceglia says.

Although Genovation is entering a relatively crowded field, the VC hopes to stand out with what Bisceglia refers to as the firm’s “proprietary deal flow” -- its access to entrepreneurs as well as senior level executives at corporations.

The hope is that Genovation, thanks to its combination of entrepreneurial and corporate-level operational experience, will allow it to get good looks at the cream of the crop.

“It’s that whole aspect of deal flow [that will enable] Genovation to see the best deals first,” Bisceglia claims. “Those investments will give us a competitive leg up. We think Genovation will be a Tier 1 fund.”

Genovation also believes its combination at the principal level will enable the firm to cut through the clutter and make smart investment choices in the sectors of the Internet, media, and communications -- areas that are rife with buzzwords and jargon.

“Where these things overlap, traditional VCs tend to get confused,” Fellows says. “We have background and subject knowledge to [navigate] ourselves through these markets and these opportunities.”

Genovation, however, has yet to pull the trigger on any such investments. Those should start in earnest during the first half of 2009. “We expect to make a number of bets,” Binder says of the firm’s plans for next year.

Genovation’s leaders declined to discuss specific funding plans, but the VC firm reportedly expects to start fundraising in a big way next year.

According to the company’s own Website, Genovation will look at “seed” funding opportunities in the range of $100,000 to $1 million, as well as “early stage” investments in the range of $1 million to $10 million.

Economic timing?
But, given the rotten state of the economy, is this really a great time to be ramping up a new fund? The principals of Genovation think so.

They acknowledge that a bleak-looking economy has created a challenging environment to raise capital, but counter that the wheels of innovation continue to turn nonetheless.

“It’s a terrific time, because I think there certainly is capital in the marketplace in all quarters, whether you’re a fund or a company,” Binder insists. He believes there are still plenty of investment opportunities among early stage companies, even during a cool-down period. “The rules are different and the challenges are more significant.”

And the firm thinks its timing should be viewed as an advantage. While other firms are conducting triage on their investments, “we are a new fund, so we don’t have a legacy portfolio to nurse,” Binder says.

“We also believe that the mark of a great venture firm is one that can make money... in any investment cycle -- a bull or a bear market,” adds Bisceglia.

Binder, meanwhile, hopes recent history falls in his favor again, recalling that Broadbus was founded in 1999 and was successful at raising capital during the “depths of the tech bust.”

— Jeff Baumgartner, Site Editor, Cable Digital News

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
TCOM41
50%
50%
TCOM41,
User Rank: Light Beer
12/5/2012 | 4:15:06 PM
re: Cable Vets Launch VC Firm
I've heard the fund is in the 150-200M range. Their credentials are top tier, but they are going to have one hell of a time raising money in this market. If anybody can pull it off, it would be these guys.

Hoping they are successful, as I am certain there are bunch of folks in the telecom space that would love to have access to relationships these guys have and that includes me.
rahat.hussain
50%
50%
rahat.hussain,
User Rank: Light Beer
12/5/2012 | 3:24:36 PM
re: Cable Vets Launch VC Firm
... how big?

odo
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 3:24:34 PM
re: Cable Vets Launch VC Firm
At this point, they've declined to disclose the present size of the fund as well as the fund size they are shooting for. Indications are that they will be in fund-raising mode next year, though it appears they will be making a few bets before they complete the building of the fund. Jeff
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, July 27, 1:00PM EDT
The Changing Face of the Data Center World
Rodney M. Elder, Senior Solutions Architect, Equinix
UPCOMING COURSE SCHEDULE
Wednesday, August 3, 1:00PM EDT
The Central Office Re-Architected as a Data Center
Guru Parulkar, Executive Director, Open Networking Research Center, Open Networking Lab
Wednesday, August 10, 1:00PM EDT
Telcos & Open Source 101
Phil Robb, Senior Technical Director, OpenDaylight
Friday, August 12, 1:00PM EDT
The Role of Open Source in NFV
Jim Fagan, Director, Cloud Practice, Telstra
in association with:
From The Founder
The more things change, the more they stay the same for Juniper's next-gen comms solutions, and that's a good thing.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (0) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Telecom Innovators Video Showcase
Versa Networks' Kumar Mehta on SD-WAN Managed Services

7|19|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Versa's Kumar Mehta for an interview focused on why service providers are building SD-WAN managed services, and how Versa's telco customers are innovating.
LRTV Custom TV
Juniper Networks & The Evolution of NFV

7|19|16   |   06:01   |   (0) comments


Senior Juniper Networks executives talk to Light Reading Founder & CEO Steve Saunders about NFV developments and the recent independent evaluation by test lab EANTC of Juniper's Cloud CPE solution.
LRTV Interviews
CenturyLink Goes Beyond Managed WiFi

7|19|16   |     |   (0) comments


CenturyLink's managed WiFi allows enterprises, such as retailers and resorts, to track guest WiFi usage in order to help them better communicate with customers.
LRTV Interviews
AT&T Launches Network Functions on Demand

7|17|16   |   05:26   |   (0) comments


Roman Pacewicz, Senior Vice President, Offer Management & Service Integration, AT&T Business Solutions, discusses the operator's launch of its Network Functions on Demand service.
LRTV Interviews
Enterprise Pitch for Ciscosson

7|14|16   |   04:43   |   (0) comments


After seven months of near silence, Cisco and Ericsson executives publicly discussed details on their extensive partnership. Among the tidbits shared by Martin Zander, VP, group strategy programs, Ericsson, and Doug Webster, VP service provider marketing, Cisco: The partnership was initially launched to serve the service provider market, but is already gaining ...
Wagner’s Ring
Cisco Faces Up to Hypercloud Threat

7|13|16   |   02:42   |   (0) comments


Facebook, Amazon and Google mostly don't buy branded technology for their networks – they build their own. That's a threat to Cisco – and its competitors too – which face potentially dwindling demand for their product. Is Cisco up to the challenge? Light Reading went to the annual Cisco Live conference to find out.
LRTV Huawei Video Resource Center
Building a Better Connected Russia

7|13|16   |     |   (0) comments


At UBBS World Tour 2016, Alla Shabelnikova of Ovum shares the findings of a white paper outlining the challenges and opportunities of broadband rollout in Russia.
LRTV Huawei Video Resource Center
The Global Video Business

7|13|16   |     |   (0) comments


At UBBS World Tour 2016, Roger Feng of Huawei shares insights on the future of video business.
LRTV Huawei Video Resource Center
UBBS World Tour Moscow Highlights

7|13|16   |     |   (0) comments


At UBBS World Tour 2016 at Moscow, Huawei showcases its outstanding progress in video technology.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
September 27, 2016, Philadelphia, PA
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
SoftBank Muscles In on ARM in $32B Deal
Iain Morris, News Editor, 7/18/2016
Ericsson 'Doubles' Savings Goal as Sales Slump
Iain Morris, News Editor, 7/19/2016
Kevin Lo's Move to Facebook: Sign of Things to Come?
Patrick Donegan, Chief Analyst, Heavy Reading, 7/20/2016
Verizon's Next With VNFs
Carol Wilson, Editor-at-large, 7/21/2016
Facebook Gets Its Drone On
Ray Le Maistre, Editor-in-chief, 7/22/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
I've enjoyed interviewing many interesting people since I rejoined Light Reading, but William A. "Bill" Owens certainly takes the biscuit, as we say where I come from.
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.