From: Rohit Khare (Rohit@KnowNow.com)
Date: Mon Dec 11 2000 - 13:08:51 PST
Kleiner Perkins partner Kevin Compton could be the Grinch of
the Internet. He isn't bummed by the recent spate of
failures. "I don't think it's depressing. It's
exhilarating," he told a Red Herring reporter at dinner this
week. "Some of these guys deserved it." Ouch!
===================================================
DEALFLOW DEEP DISH: 12 ENTREPRENEURING DROPS GREENBERG, WILL
BUY BACK SOME BENCHMARK STOCK
The rumors that have been swirling around the venture
capital community about a power struggle at 12
Entrepreneuring have proven to be true. Halsey Minor will
take the mantle of president, CEO and, chairman of 12, while
Eric Greenberg, formerly co-president, CEO, and chairman,
will be relegated to an advisory role. The rumors surfaced
at Red Herring's NDA conference in October. Mr. Minor made
it official this week with a letter to 12's shareholders, a
source tells us. It became clear that 12 needed one person
to call the shots after Mssrs. Minor and Greenberg came down
on opposite sides over a potential investment. Mr. Minor won
the argument, our source says. The sole CEO will gain a lot
more control by buying up a sizable portion of his former
co-CEO's stock. Mr. Greenberg's investment in 12 will fall
from about $12 million to $2 million, our source says.
Separately, 12 will buy back an undisclosed number of shares
from investor Benchmark Capital. Is this a sign that
Benchmark is pulling back from 12? Benchmark and 12 had no
comment. Mr. Greenberg could not be reached for comment. ...
Kleiner Perkins partner Kevin Compton could be the Grinch of
the Internet. He isn't bummed by the recent spate of
failures. "I don't think it's depressing. It's
exhilarating," he told a Red Herring reporter at dinner this
week. "Some of these guys deserved it." Ouch! ... Silicon
Valley isn't as hard core about rock 'n' roll as Seattle. At
Red Herring's annual holiday charity bash Thursday night,
Napster founder Shawn Fanning's guitar fetched just six
grand. The buyer? Ronnie Conway, son of archangel investor
Ron Conway.
(For more on 12, see Headcount at
http://www.redherring.com/companies/2000/1211/com-headcount121100.html)
--Unlimited Partners
dealflow@redherring.com
Less than a year after founding 12 Entrepreneuring, Eric
Greenberg has left his title-heavy position as co-CEO, co-
president, and co-chairman of the San Francisco-based
Internet accelerator, according to sources close to the
company. Co-CEO Halsey Minor, the former chairman and CEO of
CNet (Nasdaq: CNET) who joined 12 Entrepreneuring in March,
will handle the CEO, chairman, and president duties on his
own. Sources say Mr. Minor disclosed the change in a letter
to shareholders this past week (shareholders still need to
approve the change).
A well-placed source told Red Herring that Mr. Greenberg
will remain an adviser and stockholder, although Mr. Minor
and the company will repurchase some of his stake, which, as
a founder, is likely substantial. Company sources deny that
Mr. Greenberg has left. "He's still with 12," insists a
spokesperson for Mr. Greenberg, who was unavailable for
direct comment. She would neither confirm nor deny whether
he was no longer CEO, saying only, "He's still here and
that's it."
Since its founding earlier this year -- when Mr. Greenberg
left Scient (Nasdaq: SCNT), the second consultancy he
founded (Viant (Nasdaq: VIAN) was his first) -- 12
Entrepreneuring has flown under the radar of public
attention. Its secrecy is all the more amazing considering
the size of its kitty: more than $100 million, from a star-
studded cast of investors (including Benchmark Capital,
Goldman Sachs, Merrill Lynch, eBay founder Pierre Omidyar,
Loudcloud chairman Marc Andreessen, and former Gateway CEO
Ted Waitt).
Meanwhile, Mr. Greenberg's former consultancies have been
trimming their workforces. Scient announced this past week
that it would cut 460 jobs, and Viant nixed 125.
Several other high-profile execs remain at 12
Entrepreneuring alongside Mr. Minor. Its chief strategy
officer is John Hagel III, the former McKinsey & Company
principal, well known for his marketing books "Net Worth"
and "Net Gain." John Seely Brown, former head of Xerox PARC,
now splits his time between serving as Xerox's chief
scientist and 12 Entrepreneuring's chief innovation officer.
Have more details on what 12 Entrepreneuring and Eric
Greenberg are up to? Send them to headcount@redherring.com.
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