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New venture fund starts in North Bay - Monday, June 13, 2005
By Loralee Stevens
Read Original Article
Avance
Address: 4340 Redwood Hwy. Ste F-137
City/State/Zip: San Rafael, CA 94903
Business: Investment funding, management, M&A consulting
Phone: 415-509-2054
Website: www.avanceventures.com
Contact: André Blanadet, founder
Founded: 2004
Staff: 2
Customers: Consumer products, video game startups
SAN RAFAEL - A new venture fund will serve entrepreneurs from Silicon Valley to Santa Rosa with an emphasis on developers of innovative consumer products and video games, according to founder André Blanadet.
Avance is already operating as a management consultant and funding pipeline for early-stage companies. But Mr. Blanadet and his partner Matthis Heilmann, both longtime international banking and business software executives, say the time is right to build a fund from technology-hungry European investors.
"From 2000 to last year, investment dried up almost completely. Now, it is ready to burst out, and there is a tremendous interest among Europeans in anything new," says Mr. Blanadet.
"But often, what is new is happening in America and most often in California. French and German investors are particularly fascinated by products developed in Silicon Valley. We see the immediate need for a channel between Europe, where innovation is often disregarded, and California, where it reigns."
Mr. Blanadet, a former vice president of strategy and corporate development for Citigroup in New York and founder of several startups in international distribution and business appraisal, will administer the fund in the North Bay from his office in San Rafael. Mr. Heilmann, currently an executive with SAP in Germany, will relocate to Palo Alto, where he is well connected to the high-tech and investment community, according to Mr. Blanadet.
Launching a road show
This month, Avance will launch a road show, initially in Germany, to build the first stage of a fund the partners hope will reach $100 million in several years.
"Our initial fund of about $25 million will allow us to establish our credibility," he says. "Our intention is to provide seed funding through Series A to small startups with great ideas, and our target investor is a successful entrepreneur who wants to give something back to the entrepreneurial community."
Avance is currently raising $18 million-$20 million on a piecemeal basis for several startups in the North Bay. TellTale, EasyPlanet.com, and Illuminex receive services from Avance. In Silicon Valley, Mr. Heilmann has several potential projects in the $50 million-$100 million range, according to Mr. Blanadet.
"Our focus will be on developers of innovative gadgets and health aids for Baby Boomers and independent video game and film producers. These are products with a relatively short time to market and early return on investment."
"It's a great idea," says San Rafael Chamber of Commerce president and CEO Elissa Giambastiani. "Venture funding dried up after the dot-com bust, but it seems to be cyclical. Now, we're in a phase where the North Bay is seeing lots of startups in the gaming and independent film making areas. These companies need investment dollars.
"When they're funded, it's good for the entire business community," she adds. "A growing company needs the services of accountants, insurers, staffing companies, attorneys, office suppliers, and so forth. I hope Mr. Blanadet and his partner are successful."
California is Nirvana
In addition to funding, Avance will offer managerial expertise and executive placement where needed. "Often the most creative and talented teams are helpless when it comes to financials," says Mr. Blanadet.
The company is looking for business analysts and individuals with deep knowledge of their own industry segments.
"We will also be expediting the move of European individuals and companies, initially a well-known French company, to California," says Mr. Blanadet.
"Doing business here is a source of many complaints to second- and third-generation Californians, but to those of us who come from abroad, it's Nirvana. The creativity, the encouragement to innovate, the free-flowing networking among investors and entrepreneurs - there is nothing like it in all the world."
For more information, visit www.avanceventures.com
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