Founded in 1996 by Jerry Colonna (co-founder of CMGI's @Ventures) and Fred Wilson (formerly a general partner at Euclid Ventures), Flatiron Partners is an Internet-focused venture capital firm located in New York City. Flatiron initally received capital from Chase Capital Partners (the venture arm of Chase Manhattan) and IT venture firm Softbank. Sotftbank pulled out of Flatiron in late May 1998 in order to focus on its own VC business, but Flatiron retains it's affiliation with CCP. CCP is the sole limited partner and the exclusive source of capital for Flatiron's latest $300 million fund. With cash-rich Chase's backing, Flatiron does not have to deal with the tiresome task of generating capital.

Investment strategy

Within the Internet arena, Flatiron focuses its investments primarily in the broad categories of content, commerce, and communications. Though Flatiron does not have a stated geographic focus, the majority of its investment companies are located in New York. Of the 34 companies it has invested in (as of November 1999), 20 are located in New York. Flatiron is known in VC circles as an early-stage investor in Internet companies, but the company is quick to point out that "the majority of [its] investments have been first-round investments in companies where the management team is fairly complete and the business model has been tested and revenues are flowing." Several Flatiron portfolio companies have executed public offerings including TheStreet.com, eShare technologies and ITXC. Flatiron also received a lot of press regarding its lucrative investment in Geocities.

Investing in the next wave

Flatiron recently set aside $50 million of its $300 million fund to invest in "pervasive computing." Companies focused on pervasive computing develop hardware, software and services for post-pc gadgets. Flatiron is betting that as people become more connected to the Internet, they will want increased access to online services. According to Flatiron, "as information appliances proliferate, we will soon be interacting with the Internet in our kitchen, in our car, and through our PDA's, smart phones and clothing." Flatiron hired Seth Goldstein as "Entrepreneur in Residence" to both create and find investment opportunities in the pervasive computing market.

The portfolio

The company has several categories for its investments. Content/media includes investments in companies such as Patagon.com and Clickmail.com. E-commerce investments include Kozmo.com and VitaminShoppe.com. Pervasive computing investments include USA Digital Radio and Thinking Media. Services companies include Multex.com and Data Downlink. Software companies in Flatiron's portfolio include Resonate. Flatiron has also targeted international opportunities such as SportsYA.com and Starmedia Network.