Our guest this week is Jim Armstrong, Managing Director of Clearstone Venture Partners. Jim has been recognized as one of the Top Venture Capitalists in the United States by Forbes Magazine.

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Guest of the Week

Jim Armstrong

Formerly with Austin Ventures, key deals at Clearstrone include Internet Brands and PayPal.

Deal of the Week

Palm (acquired by HP)

Palm is a maker of mobile computing devices, including the Pixi and Pixi Plus; HP: “Our intent is to double down on WebOS”; helps HP compete in mobile computing with Apple, RIM, Google, and MSFT

$1.2 billion

Read more: HP Press Release, VentureBeat on P&L Sponsor Todd Bradley, TechCrunch follow-up

VC Deals Funded this Week

LivingSocial

Hyper-local, flash marketing platform connecting consumers with local business offers; super majority of offers are restaurant and personal services; competitor to Groupon

$14mm in Series C; $25mm in Series B raised in March 2010; $44mm raised in total

Investors: Lightspeed Venture Partners (Jeremy Liew)(lead), with existing investors: U.S. Venture Partners, Grotech Ventures, Revolution LLC (Steve Case)

Read more: peHUB, TechCrunch industry analysis

AppDynamics

Provides application performance management (APM) software solution that helps web sites manage distributed applications in high-volume production environments; features include: application mapping, transaction flow monitoring, code-level diagnostics, and cloud orchestration

$11mm in Series B (oversubscribed); raised $16.5mm total

Investors: Greylock (Asheem Chandna) (lead), LightSpeed (Ravi Mhatre) (lead)

Read more: peHUB

Corduro

Provides broad alternative payment platform, including payment services for online, mobile, and traditional retail payments; supports legacy features such as gateway and POS support, as well as, new features such as recurring payments and lower cost transaction processing methods; founded in 2010; widely suspected that Corduro could help power mobile and online payments for Google Android platform

Terms not disclosed

Investors: Google Ventures

Read more: TechCrunch

Klout

Klout measures influence on topics across the social web to find the people the world listens to; assigns a Klout score to Twitter members

$1.5mm in Series A

Investors: Allen Morgan of Mayfield Fund, ff Asset Management, Bobby Yazdani, Nova Spivack of Lucid Ventures, Zelkova Ventures, Paige Craig, Tom McInerney, Michael Yavonditte, Ofer Ronen

Read more: TechCrunch

VC Discussion

Google Ventures, Team, Portfolio

Venture arm of Google, targeting to invest approximately $100mm in 2010; staff includes 1 Managing Partner (Bill Maris), 7 partners, 4 associates, 2 venture partners and 1 fund CFO; portfolio companies: 10; broad investment focus including: consumer Internet, software, hardware, clean-tech, biotechnology, and healthcare; investment sizes range from hundreds of thousands to tens of millions; will leverage the technical expertise of 20,000 Googlers and help all companies understand how to work with Google

Read more: TechCrunch

Notable Exits

IPO

ReachLocal

Online advertising platform for local businesses; ReachLocal reported over $203 million in revenue for 2009, compared to around $146 million in 2008. Its net income for the 2009 period is $11.66 million, compared to a $4.47 million loss in 2008. Net income was around $1.4 million, compared to a $7 million net loss in 2008. ReachLocal raised around $68 million in VC funding, from VantagePoint Venture Partners (53.22% pre-IPO stake), Rho Ventures (12.94%) and Galleon Group (6.76%).

Raising $75mm in IPO, values company at $515mm

Read more: SEC S1 Filing (amended 05-03-2010), peHUB

M&A

Siri (acquired by Apple)

Personal assistant application for iPhone/iPad/iPod Touch; integrates traditional search with niche, focused search to assist in common tasks like planning travel, calling a taxi, finding a gas station, etc.; voice-driven search

Rumored to be $150-$200mm or more, but company recently closed a $15.5mm round at $35mm post-money in Nov 2009. Siri has raised $24 million in VC funding from Menlo Ventures, Morgenthaler Ventures and SRI International

Read more: peHUB and follow-up on TechCrunch

ICQ (sold by AOL to Digital Sky Technologies)

One of the first consumer instant messaging platforms; acquired by AOL to augment user base of AOL Instant Messenger

$187.5mm

Read more: DST Press Release