Netherlands-based delivery company TNT’s decision to wind up its corporate venturing operation ahead of the demerger of its postal and express delivery divisions has shown up the difficulties of maintaining a team taking stakes in nascent companies for the longer-term.
In 2009, TNT "seized control of Logispring’s firstfund and moved to dissolve Logispring II", according to Ad Eundem Partners’ website. Ad Eundem, which is Latin for "the same again", said it was the partnership for the team that built the Logispring brand, founded Logispring, built the portfolios of the funds commonly known as Logispring I and Logispring II, and managed these funds and their portfolio companies from July 2001 through 2009.
However, Ad Eundem is understood to have been unable to raise a subsequent fund and its team has split, including Robert Mullins, a former partner at Logispring, joining Confidx, a Finland-based maker of radio frequency identifcation tags, in May as its chief financial officer.
Ad Eundem declined to comment as its staff were "bound not to disclose any information re[garding] the Logispring funds or their (former) portfolio companies". TNT failed to respond to calls and emails.
TNT was the largest investor in the Switzerland and New York-based Logispring general partnership’s (GP – another term for a venture capital firm) €103m ($135m) first fund raised in 2001. Another so-called limited partner (LP – investor) in the fund was consultancy firm Booz Allen Hamilton, which was unavailable for comment.
TNT, which said in its 2006 annual report that it had made €20m in additional capital contributions to Logispring, also committed again to the 2006-vintage Logispring II fund. A court filing from the second fund’s jurisdiction in the Cayman Islands showed TNT had committed 78.57% of the second fund, which had made six investments by the time it was wound up. The other LPs in Logispring II included Trinet Logistics Investment Company, a special purpose vehicle of Japan-based bank Mitsui, with 15.71%; and (despite what is assumed to be a court spelling error) Hasso Plattner, the co-founder and supervisory board chairman of Germany-based enterprise software company SAP, through US-based wealth manager Loewenthal Capital’s 4.71% holding. Both Trinet and Dr Plattner were unavailable.
The court filing said TNT served notice on the Logispring firm on April 22, 2009, to dissolve Logispring II with support from Trinet in order to pass the 80% threshold needed to wind up the fund.
A source involved in the wind up said the LPs "sold the venture portfolio piecemeal at the worst time. The problem is corporations do not understand the type of commitment and consistency of strategy needed for this industry [venture capital]".
TNT’s last annual report said it had taken a €10m impairment charge on Logispring, which was the company’s "most significant"investment in a group of associate assets worth €62m as at December 31, 2009. Global Corporate Venturing research has revealed at least 19 companies backed by Logispring (see below).
In May, TNT’s shareholders will vote on the demerger of the group’s express and mail operations, following the launch of its 2015 strategy plan at the end of 2009. TNT had been formed in 1996 through the merger of the Dutch national postal service with Australia-based logistics and express delivery company TNT.
Logispring’s investments
Research by Global Corporate Venturing has uncovered 19 of Logispring’s portfolio companies. In alphabetical order:
Alpheon Energy: a UK-based provider of alternative energy services started in 2008 and which has completed two projects to put solar panels on TNT warehouse roofs.
Amitive: formerly known as Mitrix, a US-based provider of supply chain management, raised $16m in an extended series A round between 2006 and 2008 from venture capital firm CME Ventures and Logispring.
Apriso: a US-based software provider for supply chains, has been funded since 1992, including $16.1m in October 2002 by corporate venturing units LogiSpring and SAP Ventures and venture capital firms BrentwoodVenture Capital, CMEA Capital and Wall Street Technology Partners. SAP Ventures and LogiSpring provided additional money a year later.
Confidex a Finland-based maker of radio frequency identification tags, raised €5m ($7m) in its seriesA round in March 2007 from Logispring and local venture capital firmAura Capital. Confidex in May hired Robert Mullins, a former partner at Logispring, as its chief financial officer.
Covast: a US-based software provider, raised $6m in 2001 from Logispring and venture capital firms Gilde andWellington.
Datatrac: a US-based software developer and wireless communications company for the delivery industry, raised $3m in its series B round from Logispring and venture capital firm Megunticook Fund.
ECourier: a UK-based online logistic company, raised £2m ($3m) from Logispring in October 2006.
Kiala: a Belgium-based delivery company, has raised at least €30m from Logispring (which has since sold out) and venture capital firms AGF, Arts Alliance, HarbourVest, Part’Com, Scottish Equity Partners, Tempo/Nova and XAnge.
LeatherXchange: an Italy-based online market, raised €7.5m in its series B round in 2001 from Logispring and venture capital firms Gilde, Amadeus Capital Partners, CRI (Santander Central Hispano), Latin Rim and Pino Venture Partners.
Lysanda: a UK-based vehicle management software provider, raised £1.25m in its series B round in September 2009 from Logispring and venture capital firm Curzon Park Capital and 12 months ago became the approved supplier of on-board eco-driving technology for vehicle fuel savings to TNT.
Odyssey Logistics & Technology: a US-based provider of outsourced transportation and logistics services to chemical and process manufacturers, raised $11.1m in February 2005 for its series B round led by LogiSpring and venture capital firms Trident Capital, Boston Millennia Partners, CMEA Ventures and RRE Ventures. Odyssey last month filed with the regulators for a further $20m in its planned $28m next round of funding.
Optiant: a US-based supply chain design company, raised $5m in its series B round in December 2003 from Logispring, to take its total to $15.5m including money provided by venture capital firms Castile entures and Battery Ventures. Assets acquired by Logility in March for $3.3m.
SeeWhy: a US-based website services provider, raised $4.5m in its series A round in September 2009 from a consortium including Logispring and a further $2m in December that year from venture capital firm DeltaPartners.
Solsoft: a US-based computer security company, was sold to French peer ExaProtect, which in turn was subsequently acquired by LogLogic. Solsoft raised $12m in July 2003 for its fourth round from corporate venturing units Logispring, Innovacom and Intel Capital and private equity firms Carlyle Group, CLAM Private Equit, Sofinnova Partners, VSA and Rothschild Management, which took its then-total to $35m.
Streamlite: a US-based delivery company formerly known as MailExpress, raised $10m in July, to take its total to $110m from first round investor Logispring and venture capital firms CMEA, Lightspeed Venture Partners, XAnge and Adams Street Partners.
Visual i/o: a US-based developer of interactive visual analysis software that spun out of Chicago-based Schindler and Associates in 2001, raised $3m for its series A round in October 2006 from Logispring.
Waer Systems: a US-based developer of inventory-management software, received an undisclosed amount of series A equity funding from Logispring in February 2009.
Xterprise: a US-based provider of radio frequency identification tags, raised $2m for its series B round in February 2005 from Logispring, after a prior $1m A round investment from LogisSping in November 2003.