WINDSPEED VENTURES
TO MANAGE COMDISCO’S CORPORATE VENTURE PORTFOLIO
Unique Agreement
Enables Comdisco to Retain Portfolio, Share in
‘Upside’ without Investing its Own Resources
Lexington, MA
– February 23, 2004 –
Windspeed Ventures, a Lexington, MA-based venture investment
firm, today announced that it has entered into an agreement
with Comdisco Ventures, Inc., a subsidiary of Comdisco
Holding Company (OTC: CDCO), to manage Comdisco’s
venture equity and warrant portfolio. The portfolio
represents equity and warrant positions in over 250
software, communications, telecom, biotech, and healthcare
companies.
After extensive evaluation,
Comdisco determined that greater value could be derived
for its stakeholders through a management agreement
with Windspeed rather than by selling the portfolio.
Windspeed understood the unique requirements of Comdisco
and helped develop a management structure that is beneficial
to both parties. Under the terms of this agreement,
Windspeed, as managing partner, will provide capital
in the form of follow-on investment, management expertise,
and administrative support to maximize the overall value
of the portfolio. Windspeed will be paid a management
fee and participate in the realized value of the assets.
“We’re offering
another option to owners of corporate venture portfolios,
like Comdisco, who may be looking to divest,”
said Daniel Bathon, general partner and chairman of
Windspeed. “Instead of selling at depressed valuations,
and getting a fraction on the dollar for their assets,
these companies can now retain their portfolios, protect
their positions, and share in the upside – without
investing their own time, money, and resources.”
About
Windspeed
Windspeed Ventures is a venture investment
firm focused on helping build high technology companies
in the telecommunications infrastructure, software,
and communications industries. Windspeed invests in
companies at the seed or later stages through direct
investments or through acquisition or management of
existing portfolios. Lexington, MA-based Windspeed Ventures
was founded in 1999.
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