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August Capital

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August Capital
NameAugust Capital
TypePrivate venture capital
IndustryVenture capital
Founded1995
FounderDavid Marquardt; John Johnston; Bruce Dunlevie
HeadquartersMenlo Park, California
Key peopleDavid Marquardt; Peter Levine; Ed Zander
ProductsVenture capital funds
AssetsEstimated multi-billion (AUM varies by fund)

August Capital

August Capital is a Menlo Park-based venture capital firm focused on early to growth-stage investments in information technology, software, semiconductors, and wireless communication companies. The firm participates in multiple fund cycles and follows a long-term investment horizon working with entrepreneurs from Silicon Valley and international technology hubs such as Seattle, Boston, Israel, and China. August Capital has backed companies that have pursued exits via initial public offerings, mergers, and acquisitions by leading corporations including Microsoft, Intel, Google, and Oracle Corporation.

History

Founded in 1995 by veteran investors with ties to firms like Intel Capital, Kleiner Perkins, and New Enterprise Associates, the firm established itself during the second wave of venture activity in the 1990s alongside peers such as Benchmark (venture capital firm), Sequoia Capital, and Accel Partners. Early investments coincided with technology cycles tied to the growth of WWW Consortium, the proliferation of TCP/IP, and the expansion of mobile telephony markets. Throughout the 2000s, August Capital expanded its partner roster and staged investments during peaks related to the dot-com bubble and later during the recovery tied to platforms launched by Facebook, Apple Inc., and Amazon (company). The firm navigated regulatory and market shifts including responses to listings on the NASDAQ and consolidation driven by acquisitions from corporations such as Broadcom and Cisco Systems.

Investment Strategy

August Capital emphasizes sector specialization in enterprise software, networking, storage, and communications technologies, targeting companies developing products for customers including telecommunications companies, data center operators, and cloud computing providers. The firm typically invests in Series A through later-stage rounds, syndicating deals with other investors like Bessemer Venture Partners, Greylock Partners, and Andreessen Horowitz. Portfolio support often involves executive recruiting from backgrounds at Hewlett-Packard, Sun Microsystems, VMware, and Cisco Systems, as well as board guidance that aligns with public-market readiness exemplified by listings on exchanges such as the New York Stock Exchange and NASDAQ. Risk management and due diligence practices reference legal and compliance frameworks informed by Securities Act of 1933 implications for private placements.

Notable Investments and Exits

August Capital's portfolio has included companies that achieved significant liquidity events, with exits via IPOs and strategic sales. Notable portfolio companies have included startups that scaled to public companies and acquisitions by technology leaders like Microsoft Corporation, Intel Corporation, Google LLC, Apple Inc., and Oracle Corporation. The firm participated in financings for businesses that contributed to the growth trajectories of sectors influenced by ARM Holdings architecture, x86 ecosystems, and standards promulgated by bodies like the IEEE. Strategic exits often intersected with major transactions involving acquirers such as Broadcom Inc., Qualcomm, Dell Technologies, and IBM.

Leadership and Key People

Founding and senior partners have professional histories at leading investment and technology institutions including Intel Capital, Kleiner Perkins Caufield & Byers, Menlo Ventures, and Sequoia Capital. Leadership has included individuals who previously served in executive roles at Sun Microsystems, HP, Cisco Systems, and Novell, and who have board experience across companies that filed S-1 documents for initial public offerings. The firm’s advisory network draws on relationships with executives from Microsoft, Oracle Corporation, Amazon (company), and academic collaborations connected to institutions such as Stanford University and Massachusetts Institute of Technology.

Fund Performance and Assets Under Management

August Capital has raised multiple funds over its history, deploying capital across early-stage and growth-stage vehicles with aggregate assets under management in the multi-billion-dollar range. Performance metrics referenced by limited partners typically mirror benchmark comparisons to vintage-year returns and internal rate of return (IRR) calculations used industry-wide by investors such as Pension Benefit Guaranty Corporation–mandated plans and university endowments like those of Harvard University and Yale University. Fund strategies have been timed across macroeconomic events including the 2008 financial crisis and subsequent recovery driven by expansions in cloud computing and mobile application markets.

Corporate Governance and Operations

Corporate governance at the firm includes partner-led investment committees, independent directors on portfolio boards, and operational support teams focused on finance, legal, and talent. The firm’s governance practices align with investor expectations influenced by standards from entities like the Securities and Exchange Commission and reporting practices consistent with limited partnership agreements used across the venture capital industry. Operationally, the firm maintains offices in Menlo Park and engages with accelerator and incubator networks similar to Y Combinator and Plug and Play Tech Center to source deal flow and founder talent.

Philanthropy and Industry Involvement

Partners and alumni of the firm participate in philanthropic and industry organizations including university advisory boards at Stanford University, University of California, Berkeley, and involvement with technology policy groups such as Electronic Frontier Foundation and trade associations like the National Venture Capital Association. The firm’s principals have supported initiatives in entrepreneurship education, incubation programs, and research collaborations connected to laboratories and centers at institutions such as MIT Media Lab and Carnegie Mellon University.

Category:Venture capital firms