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Lycos starts venture fund
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July 20, 1999: 7:26 a.m. ET
Paul Allen group, others join in partnership targeting Internet start-ups
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NEW YORK (CNNfn) - Lycos Inc. and several limited partners, including one headed by Microsoft co-founder Paul Allen, Tuesday formed a $70 million venture capital fund investing in Internet start-ups that provide strategic benefit to the Web portal.
Lycos, which will contribute $10 million to the fund, will be joined by Allen's Vulcan Ventures, as well as Bear Stearns, Mellon Ventures, Korea's Mirae Corp., Japan's Sumitomo Corp., and others.
It will operate the fund together with general partner Lycos Triangle Partners, a limited liability company formed by Lycos and Triangle Capital Corp.
The fund will invest in young companies involved in electronic commerce, online media or the development and utilization of Internet technology, content or services.
Dennis Ciccone, formerly CEO of WiseWire, a company Lycos acquired in April 1998, and most recently its vice president of mergers and acquisitions, will be managing director of the fund.
"Younger businesses get funding and with it distribution on the Lycos Network, the investment risk and reward is shared by Lycos and our partners and, finally, Lycos puts itself in a position of strategic influence with many of the companies that are developing next generation offerings even though the outlay of our capital is minimal," said Bob Davis, Lycos president and CEO, in describing the fund's benefits.
Lycos, which says its visitors include half of all Internet users, has already invested $11 million in 11 Internet companies over the past two years, the Wall Street Journal reported.
They include Internet e-mail provider Mail.com, and online calendar and address service Planet.all -- which was purchased by Amazon.com in April 1998 and yielded Lycos a more than 300 percent return in seven months, Lycos said.
Shares in Lycos (LCOS) closed down 4-7/16 at 100-5/16 on Monday.
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