Sep. 13, 2012
Craig E. Dauchy
See more on Craig E. DauchyCooley LLP Palo Alto Corporate Specialties: venture capital, fund formation
In an increasingly competitive market in which venture funds are fighting for money, Dauchy helped Menlo Park-based Institutional Venture Partners, a longtime client, close a $1 billion fund in June, its fourteenth and largest to date.
"Some funds have lowered their targets versus what they expected to raise three years ago," when fundraising was not dampened by a struggling economy, Dauchy said. "There is much more competition for these dollars."
Dauchy, head of Cooley's venture capital practice group, also advised Menlo Park-based Lightspeed Venture Partners to close a $675 million fund in June, as well as San Francisco based Founders Fund LLC in closing a $625 million fund in December.
Large venture funds with proven track records are still willing to commit to companies that specialize in what Dauchy calls "social-mobile media," a nexus of social networks, multimedia, and mobile technology such as cell phones and tablets to reach consumers.
On the other end of the fundraising spectrum, Dauchy is advising individual angel investors and smaller venture firms on "micro-cap funds," which raise up to $100 million and invest in very early stage companies. Dauchy said he has 10 clients in New York, Colorado, Seattle and California that he expects to close funds in the next year.
Two of those clients are in the Los Angeles area, and Dauchy said he was excited about new collaboration opportunities that cropped up when the firm set up shop in Santa Monica in June.
"Santa Monica, West Los Angeles, that's where the intersection of digital and media is taking place," Dauchy said. "Many of our clients who invest in the area said we ought to look at that. There's room to grow."
Last year, Cooley CEO Joe Conroy dispatched Dauchy to lead the firm's investigation into how the firm could capitalize on firm opportunities in China. The firm decided after visits overseas and conversations with clients to open up in Shanghai, but Dauchy is expecting the firm to consider opening in Beijing as well.
Dauchy began his legal career at Cooley in 1975 as its 35th lawyer and has been there ever since.
"There's a very special culture at Cooley," Dauchy said. "I love the culture. I love the people. We don't hire anyone we think won't be a Cooley lifer."
- KEVIN LEE
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