EXECUTIVE SUMMARY

The past year was slow for the Top 25 venture capital firms, with most showing flat or negative growth in funds under management.

As of January, the Top 25 venture capital firms have $15 billion of capital under management, with 832 projects invested.

Of the 17 companies reporting both this year and last, only Redpoint Ventures and Levine Leichtman registered modest, single-digit growth in firmwide funds under management.

Technology investors TL Ventures and Kline Hawkes & Co. reported the largest decline among the firms on the list last year. The overall value of TL Ventures' capital under management fell to $685 million, a decline of $715 million from the previous year. It slid five spots to No. 8. The value of funds under management at Kline Hawkes & Co. shrunk to $300 million as it dropped three spots to No. 14.

This year, more than half the firms anticipate an increase in investment in L.A. and Orange counties.

Nicole Taylor

The PACESETTER

REDPOINT VENTURES

Redpoint Ventures leads the list of largest venture capital firms for the fourth year in row. The firm has $2.1 billion under management, an increase of $100 million, or 5 percent, over last year.

In 2002, Redpoint was involved in 26 new and follow-up investing rounds, bringing the total number of investments to 61 since its 1999 inception. Companies receiving funds in 2002 included BigBand Networks, Topspin Communications, Syndeo and MetaTV. Redpoint also has popular names like Ask Jeeves, Excite and Netflix among its media and consumer investments.

In the coming year, Redpoint projects a significant increase in investment in L.A. and Orange counties, from $5 million in 2002 to an estimated $30 million in 2003.

Formed by former partners at Brentwood Venture Capital and Institutional Venture Partners, Redpoint operates offices in Los Angeles and Menlo Park and funds early-stage development of technology companies. It focuses on communication infrastructure, enterprise and infrastructure software, storage and mobile and wireless.

Nicole Taylor

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