Recently labeled the ?blue-blood venture capital firm? by Red Herring, Greylock was founded in 1965 by Dan Gregory and Bill Elfers. The company began with $9 million in capital pledged by a group of investors who are referred to by the company as ?six prominent families.? These six families, the company likes to boast, are still investors in Greylock.

Unlike many other venture capital funds, Greylock enjoys keeping a low profile. The company does not reveal its investment returns and hardly publicizes its investments. According to Red Herring, ?in venture capital circles, Greylock?s reputation rivals that of Kleiner Perkins Caufield & Byers, despite choosing not to market itself.?

Investment strategy

In three decades, Greylock has created nine partnerships with over $725 million of capital and has invested in over 250 companies. More than 100 of Greylock?s investment companies eventually became public companies and 80 portfolio companies merged with other corporate entities. For the second and third quarters of 1999, 11 Greylock companies executed initial public offerings, collecting $930.1 million in equity capital.

The company invests in start-up, early stage and expansion stage opportunities. According to the company, start-ups and early stage investments account for 50% of the company?s activity, expansion stage investments account for 40%, and the final 10% is comprised of management buyouts and recapitalizations.

Portfolio companies

Greylock focuses its investments within three primary industries: software, communications and health care. Portfolio investments include HelloAsia.com and Clip2.com in software, Xros and PrairieComm, Inc. in communications, and Mitotix and Landacorp in healthcare. The company has recently focused more of its investment capital on software and communications rather than health care.

Greylock management: Experienced and loyal HBS crew