University entrepreneurs have 120 million new reasons to pursue their tech dreams.
Los Angeles-based ITU Ventures, the firm that invests mostly in university spin-offs, has launched a $120 million fund called ITU Ventures III. ITU has already invested more than $75 million in technology companies spun from universities through ITU Ventures I and II. Founded in 2000, ITU works with universities and research centers nationwide through offices in Denver and Albuquerque, N.M., and its headquarters in Los Angeles. Chad Brownstein, founder and managing partner, admits that California schools have a leg up when it comes to gaining financing. “Southern California is a key focus for our business,” Brownstein said. “Partly based on proximity, but mostly based on the significant historical legacy of entrepreneurship.” Ventures I and II have invested in 30 companies. Venture III is actively seeking investment opportunities, he said. ITU’s management team has ties to CalTech, UCLA Anderson School of Management, Stanford University, UC Berkeley, and Rensselaer Polytechnic Institute. The partnership also invests in corporate spinoffs and works closely with Boeing Corp.
Case Stacked
Santa Monica-based CaseStack Inc., which specializes in logistics outsourcing for shippers and packaged goods suppliers, has named a new chief financial officer. Tracy Edwards, formerly president and chief executive of Bell Industries Inc., will take the financial helm immediately. CaseStack was named the fastest growing private company in the L.A. area last year, according to the Deloitte & Touche LLP “Fast 50” list, and ranked No. 22 on PriceWaterhouseCoopers “Hot 100” list of the nation’s fastest growing companies. According to Deloitte’s calculations, CaseStack has achieved almost 40,000 percent growth over the past five years. Though the closely held company does not reveal current revenues, it took in about $25 million in 2004.
The Bell Tolls
Meanwhile, Edwards’ former company, City of Industry-based Bell Industries, is in the midst of a hostile takeover bid for Coast Distribution System Inc. Bell is a network engineering company that also has a division that distributes parts for recreational vehicles, motorcycles, snowmobiles and boats. Morgan Hills-based Coast supplies parts to the recreational boat industry. The struggling Bell is looking to beef up its recreational division. It made an unsolicited $50 million offer last fall to acquire Coast at $7.70 per share, a hefty premium over Coast’s $6.69 share price at the time. Coast rejected the offer, saying it was too low.
Coast is now trading at $7.25 per share, and Bell persists in its takeover attempt. Neither company returned calls for comment. In its latest move, Bell sent a letter to Coast’s directors in mid-February pressing its case. Since December’s takeover bid, Coast’s board has adopted a shareholder rights plan also known as a “poison-pill” which would allow the company to flood the market with shares in an effort to thwart a takeover.
Security Blanket
Fifty of the leading mid-sized tech security companies in the country will set up perimeters Tuesday and Wednesday at the fourth Security Growth Conference at the Loews Santa Monica Beach Hotel.
Keynote speakers will be Charles E. McQueary, undersecretary for science and technology at the U.S. Department of Homeland Security, as well as Frank Abagnale. the former conman-turned-FBI instructor upon whom the 2002 film “Catch Me if You Can” was based.
*Staff reporter Hilary Potkewitz can be reached at (323) 549-5225 ext. 226 or at
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