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[sharechat] Re: IT Capital - copy from other newsgroup - answer to question

From: Derek <>
Date: Thu, 30 Dec 1999 16:21:42 +1300

28.12.1999 - By YOKE HAR LEE Listed venture firm IT
                  Capital will have $20 million available to scout for
                  technologies in Australia and New Zealand after a
                  transaction clinched with two US venture partners.

                  Cross Atlantic Capital Partners and Snider Capital
have bought
                  shares in IT Capital amounting to $8 million. On top
of that,
                  they have set aside $12 million to co-invest in deals
with IT

                  Jeff Dittus, chief executive officer of IT Capital,
said that one of
                  the first co-investments would be in an interactive

                  "What we have been consciously doing is to find
partners that
                  will invest in IT Capital so that they get some
liquidity in their
                  co-investments with us. They will also co-invest in
deals where
                  they can really help the company."

                  Cross Atlantic is a venture capital firm that has
invested in
                  success stories such as Novell (a networking
                  company), QVC (a home shopping company) and the
                  Capital Group, one of the high-flying initial public
offerings in
                  the US last year.

                  The investors in Cross Atlantic include Safeguard
                  the Pennsylvania Public School Employees' Retirement
                  System and Bank of America.

                  Snider Capital is a new venture capital company which
                  in internet-based information technologies. The Snider
                  have owned and operated radio and television stations,

                  including the largest sports satellite broadcasting
network in the
                  US. They also own professional hockey and basketball
                  franchises, among others.

                  The Snider family have interests in Comcast Spectator,
one of
                  the largest cable companies in the US.

                  On what attracted the two US venture capital companies
                  New Zealand, Mr Dittus said: "They are betting on the
                  that the Australasian region is short of venture
capital but long
                  on innovation. And they are using IT Capital as a way
to make
                  venture investments in this part of the world."

                  He added that the co-investment structure was a
                  one, enabling IT Capital to do larger transactions and
to create
                  more capital when the company made its exit from

                  He expected more money would be made available by the
                  co-investors and others.

                  "My sense is that the money will grow as we show some
                  success. It [co-investment] is a way for the company
to raise
                  $20 million but not have the dilution associated with

                  Since IT Capital's transformation over a year ago, it
has raised
                  $20 million from various sources directly. By January
15, it will
                  have about $12 million left after making its

                  Its present investments are in Exo-Net, an e-commerce
                  start-up company founded by Maurice Bryham, formerly
of PC
                  Direct; 100 per cent in Terabyte, a web design and
                  company (if shareholders approve the deal); and in US
                  portal Emusic, after its investment in was
sold in
                  exchange for shares.

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