H&Q Venture Associates (HQVA) was founded in July 1998 as a successor to Hambrecht & Quist Venture Capital, the VC arm of the San Francisco-based investment bank Hambrecht & Quist. Hambrecht & Quist was sold to Chase Manhattan in 1999. While HQVA has no official ties to the new investment banking firm, Chase H&Q, HQVA does share some contacts with Chase H&Q. HQVA is now mainly aligned with WR Hambrecht & Co., the investment bank formed by William Hambrecht, HQVA principal and founder and head of Hambrecht & Quist before the Chase merger.

Blasts from the past

HQVA has $330 million in capital under management, and invests mainly in technology related companies. (That also happens to be the specialty of Chase H&Q and WR Hambrecht.) Specifically, HQVA prefers early stage companies. HQVA divides its funds into 3 classifications.

Adobe Ventures, L.P. is a joint venture with Adobe Systems, the San Jose, Calif.-based manufacturer of publishing and imaging software. Adobe originally established a venture capital presence in 1994, when H&Q?s VC business was part of the investment bank. The relationship has continued, and the partnership?s third fund, Adobe Venture III was launched in 1999. The fund will invest between $500,000 to $3 million in companies that have products or services that will further Adobe?s own business interests.

TI Ventures, L.P., is a partnership with Texas Instruments, the Dallas-based electronics firm. Like the Adobe fund, TI Ventures dates back to the H&Q days and seeks to boost Texas Instruments? products. The $100 million dollar fund is interested mostly in early stage companies.

HQVA?s Sole Purpose Limited Partnerships are owned by HQVA principals and senior employees from the H&Q days. Active since 1991, the partnerships have invested $100 million in 50 companies and occasionally have corporate partners.

Portfolio: All the colors of the tech rainbow

HQVA makes investments in 4 types of companies: communications, electronic publishing, Internet and software. CopperCom, NetBoost and Sierra Wireless are examples of communications investments. In electronic publishing, portfolio companies include Cascade Systems, Digimarc and Managing Editor Inc. Internet companies include Haht Software, Vignette and Salon Magazine. Finally, Glyohica and Seattle Systems are part of HQVA?s software portfolio.

Management

HQVA has six principals and one managing director. In addition to the previously mentioned William Hambrecht, a Princeton graduate, HQVA principals include Rupen Dolasia, Eugene Eidenberg, Christopher Hollenbeck, Samuel Kingsland and Jacqueline Berterretche, who doubles as the firm?s CFO. The lone managing director, Standish O?Grady, has a Dartmouth MBA. All management team members sit on the boards of several portfolio companies.