Prime One Capital Shrugs-off Gloom

Prime One Capital, a US-headquartered venture capital firm, has shown there is still investor appetite for its segment of the market after closing a $450m early stage fund, as the wider private equity sector struggles to garner fresh capital.

Prime One Capital, which completed 20 deals last year despite difficult market conditions.

The industry has suffered amid a wider slump in the fundraising market. Data provider Preqin stats show funds are taking longer to close - they took an average 15 months last year, up from 12 months in 2007 and 9.5 in 2004. In the fourth quarter of 2008, 42 funds were raised worth a total of $66.4bn (€52.6bn), down from 62 worth $79.2bn the previous year.

Capital was sourced almost exclusively from existing investors in its funds, the firm said.

The fund will invest in technology, biotechnology and clean-tech companies in the US and Europe. It is the firm’s fifth early stage vehicle in ten years.

Clayton Hawthorn III, a partner at Prime One Capital, said: “Over the past twelve years, we have been fortunate enough to work with some of the most successful entrepreneurs in the world who have started game-changing companies. There are certainly challenges facing many industries right now but, thanks to the ongoing commitment of our limited partners, we can continue to focus on finding and supporting ambitious, dedicated entrepreneurs.”

Prime One Capital has established a strong record of delivering stellar returns, with success stories too numerous to list, all yielding significant multiples.