Fund 1 – formed in 1983

Mentor Graphics (Beaverton, Oregon)

We actually wanted to do this deal, but our first fund was closing at the same time they were closing their last round of venture funding. We had no track record. There was no reason for them to wait for us (does this sound like we know what it is like to be on the entrepreneur’s side of the table?). That company went on to become the second largest software firm in the Pacific Northwest, with sales over $700M and a market capitalization of over $1 billion.

To get even, we stole their co-founder and President in 1992.

Fund 2 – formed 1986

Starbucks (Seattle, Washington)

A guy walks into your office in the late 1980’s and says he wants to open a chain of retail shops selling a commodity product you can get anywhere for 25 cents, but he will charge 2 dollars. Of course, you listen politely, and then fall off your chair laughing when he leaves. Howard Shultz didn’t see this as humorous. And we didn’t make 500 times our money.

To get even (wasn’t our not making money enough?) years later, Howard opened his own venture capital firm right down the street.

Fund 3 – formed 1994

Amazon (Seattle, Washington)

The Internet boom was just beginning. Amazon had sales of $4M a year. We had a handshake on a term sheet with the CEO to put $2M into Amazon for 20% of the company (a $10M post money value). At the eleventh hour, some guy named John Doerr flew up and offered $8M going in for 20% of the company (a $40M post money value). Handshake? What handshake?

To get even, we buy all our books at Barnes & Noble. We don’t think Amazon has noticed.

Fund 4 – formed 1997

Pixelworks (Wilsonville, Oregon)

This was a high technology company right in our sweet spot. We saw the firm early on when there was plenty of time to make a decision. There was one small concern - the CEO was an ex-venture capitalist. (Shouldn’t he have gotten credit for realizing his mistake?). However, the big negative came as we walked away from the meeting at the company. One of our partners turned and said, “Why would we want to do another semiconductor deal?” Apparently, we all suffered a memory lapse greater than Amazon’s CEO, since we did back some little company called Xilinx in fund 1.

To get even, we now are all forced to buy flat panel TVs and computer displays containing Pixelworks’ chips. And the ex-VC, used OVP as a “case study" for years.

Fund 5 – formed 1999

Blue Nile (Seattle, Washington)

Why was it that the dot-coms we invested in bombed, and the one we turned down, multiple times, went public in 2004? Maybe because diamonds are forever - or we should never say never again - or the world is not enough, Mr. Bond. Whatever the reasoning, we left this diamond in the rough for others to capitalize, and capitalize upon.

To get even, we are not getting our respective spouses diamonds next holiday season, while those who invested in Blue Nile are. If you don’t think this is painful, we’ll introduce you to our spouses.

They know. They remember. They remind.

Fund 6 – formed 2001; Fund 7 – formed 2006

 
We’re absolutely, positively sure we haven’t missed any big winners in our current funds.  And if we’re wrong, you’ll read about it here first.