Wednesday, September 3, 2008

Longworth Venture to raise $180M

By Mass High Tech Staff

Longworth Venture Partners is planning to raise $180 million for its third and latest fund, according to published reports.

Waltham-based Longworth, which is an investor in IT companies such as Cambridge-based Sermo Inc. and Waltham-based Constant Contact Inc. (Nasdaq: CTCT), is still investing its $118 million second fund, which closed between 2001 and 2003.

The firm’s first fund, which totaled $20.5 million, closed in 1999, website PE Hub reported.

In May, Longworth co-led a $3 million Series B round of investment in Frame Media Inc., a maker of digital picture frames and other wireless content. Lexington-based CommonAngels also invested in the company.

Frame Media, through its FrameChannel web-service platform, allows customers to wirelessly send digital images and other personal content to wi-fi enabled screens.

Sermo, which operates an online network for physicians, closed a $27 million Series C round of funding last year. Longworth led the company’s initial $3 million round of funding.

Constant Contact, which completed an initial public offering last year, provides e-mail marketing software and services. During 2007, the company posted an $8.2 million net loss on $50.4 million in revenue.

Longworth invests in three sectors of information technology: software, Internet and content providers. The firm typically leads an investment in a company’s first or second round of funding, according to the Longworth website.

First round investment range from $1 million to $3 million.