Constellation Ventures, the VC arm of Bear Stearns Asset Management, invests in mid-stage media, communications and technology companies. Formed in 1997, the fund has so far invested in 17 companies. Bear Stearns serves as a limited partner of Constellation along with approximately 85 outside limited partners. With Bear Stearns as a limited partner, Constellation has access to the investment bank's resources including research, contacts, industry conferences and the Bear Stearns Communications Technology Research Lab, a facility that tests new and developing technologies.

Constellation has also created an operating company, PSICON, which will work with real estate companies that want to establish incubators around the world. PSICON will offer business, consulting and operational services, as well as seed money to nurture young companies. Constellation has a first-look right to invest in companies once they outgrow the facility. The first of these incubators, the New York TeleMedia Accelerator, is focused on companies that are creating advanced program services for digital television and other broadband platforms, as well as advanced software tools for the creation of that type of programming.

Investment strategy

Constellation seeks to invest in early to mid-stage companies within two broad categories: intellectual property/content creation and communications and technology. Geographically, Constellation focuses on companies located in Los Angeles' "Digital Coast" and New York's Silicon Alley. The firm generally makes initial investments of $3 to $5 million and expects investments to have a five-year life. According to the company, Constellation Ventures aims to bridge the gap between creativity and technology by investing in content networks that leverage multiple digital distribution systems and enabling technologies.

Portfolio

Constellation invests in companies with business models based on the increasing convergence of the technology, communications and media industries. Some Constellation investments include Active Health Management, Amplified.com, ARTISTdirect, Bigfoot International, Burly Bear Network, Neoplanet, Network24 Communications, Rare Medium Group, Recipricol, Salon.com, Speakout.com, TheStreet.com, Thirsty.com and Verance.

Partners