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Venrock: Shaping The Future, 40 Years of Innovation
Venrock: Shaping The Future, 40 Years of Innovation
Venrock: Shaping The Future, 40 Years of Innovation
Future
40 Years of Innovation
In the 1930’s, Laurance Rockefeller pioneered early-stage
and energy.
technology infrastructure,
auto-immune therapies, to
to innovate and
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WHAT THEY DO
Founded: 1956
Number of Employees as of
12/31/08: ~30,000
Headquarters: Waltham, MA
MILESTONES
Sector: Enterprise Infrastructure
Founded: 1968
Number of Employees as of
12/31/08: 127
MILESTONES
Sector: Semiconductors
Founded: 1968
Number of Employees as of
12/31/08: 83,000
14 003 _ Intel
Gordon Moore
Co-founder, former CEO, Chairman
and Chairman Emeritus
Founded: 1977
Number of Employees as of
9/27/08: 32,000
Headquarters: Cupertino, CA
Mike Markkula with Apple II Left to right; Mike Markkula, Steve Jobs, Jack Wadsworth,
Phil Schlein, Apple IPO Party, 1980
16 004 _ Apple
Mike Markkula
Co-founder, angel investor,
former CEO and Chairman
One of the things that the original business plan said was that
eventually there would be more personal computers in homes than
telephones. Today, I think the average number of PCs in a home
is about 3 (if you count iPhones and Blackberrys as PCs, and I
do). When we started the company, no one had ever heard about
a personal computer before. The Apple dream was to bring the
power of computing to everyday people.
We wanted to make great stuff that we wanted to use – that was the test. If
we wanted it, then others would want it. It was a challenge and it was fun.
MILESTONES
Sector: Computer Networks
Founded: 1979
Headquarters: Marlborough, MA
18 005 _ 3Com
Bob Metcalfe
At MIT and Xerox PARC, I was taught that you can, Ethernet inventor and 3Com founder, former 3Com CEO,
on purpose, invent things. And you can, on purpose,
Chairman, VP Engineering, VP Sales and Marketing and
look out into the future and guess what it will be.
Division GM several times over
Back in the early 1970s and 1980s, the idea of
personal computers was new. And there were incomplete
notions of the personal computer – some famous people I lucked into the Silicon Valley innovation machine,
thought wrongly that PCs would stand alone – didn’t and 3Com benefited from that. I went off to start
need to be networked. Where others were confused a company because that is what you did when you
about what the computing and communication future worked in Silicon Valley. Another reason Ethernet
would look like, having been on the Internet at MIT won is that it fell into the Valley innovation culture.
and Xerox PARC with PCs and Ethernet, we had a Everything – mentors, money, tradition – was all there
clear vision of the PC future, and we went straight at ready and waiting. God Bless America.
it. We focused on Ethernet for PCs, and when PCs
arrived, we were ready.
Shaping the Future, 40 Years of Innovation 19
WHAT THEY DO
MILESTONES
Sector: Biotechnology
Founded: 1979
Headquarters: Horsham, PA
20 006 _ Centocor
I have always been intrigued
with the possibilities that
open up when new scientific
discoveries are made. In
the case of Centocor, the
discovery we took advantage
of was the capability of
producing monoclonal
antibodies in a laboratory
and in large quantities.
The challenge was to find
applications for monoclonal
antibodies. We were able
to accomplish this and
developed a number of
significant products, both
diagnostic and therapeutic.
Michael Wall
Co-founder and CEO
MILESTONES
Sector: Computers
Founded: 1980
IPO: 1983
Headquarters: Chelmsford, MA
Apollo brochure
Founded: 1980
Acquired by Wyeth
Pharmaceuticals (WYE): 1996
Headquarters: Cambridge, MA
MILESTONES
Sector: Telecommunications
Founded: 1981
Number of Employees as of
12/31/08: 1,000
Headquarters: Natick, MA
28 010 _ Cognex
Dr. Bob Shillman I started my own company because I
Founder, CEO and Chairman wanted to have a place to go to
work each day where I would be
surrounded by smart, hardworking
Cognex survived and prospered because and energetic people who enjoyed the
of a unique combination of business process of working together as a team
and technical acumen – it takes both to to accomplish something meaningful.
be a success. From the first day, Cognex And, Cognex is THAT place for me
focused on products that could be and for our nearly 1,000 Cognoids!
developed in under a year and had large
market potential.
MILESTONES
Sector: Computer Software
Founded: 1981
Number of Employees as of
12/31/08: 4,450
Headquarters: Wilsonville, OR
Tom Bruggere
Co-founder, former CEO and Chairman
MILESTONES
Sector: Life Science Technology
Founded: 1983
32 012 _ IDEXX
David E. Shaw
Founder and former CEO
Founded: 1984
Headquarters: Marlborough, MA
34 013 _ Sepracor
Adrian Adams
President and CEO
In 2007, I assumed the role of Founded on the premise that Today, Sepracor has evolved
President and Chief Executive chiral drugs could, in essence, beyond its roots in chiral
Officer of Sepracor, succeeding be divided into two or more chemistry into a fully integrated,
its founder and current ‘parts’ and that certain of research-based pharmaceutical
chairman, Timothy Barberich. these parts could be brought to company with six products on
At that time, I inherited a the market as new medicines the market, a deep and robust
company for which I had a great with the possibility for reduced pipeline of pharmaceutical
deal of respect and admiration. side effects, greater potency or candidates and the depth and
new indications. Sepracor was experience of a talented and
a pioneer in what is today a professional workforce that I
widely accepted approach to am proud to lead.
drug development throughout
the industry.
Shaping the Future, 40 Years of Innovation 35
WHAT THEY DO
Headquarters: Cambridge, MA
We weren’t the first to try antibodies in cancer. We Being an entrepreneur is about taking intelligent risks.
were able to apply the learnings and teachings from It is about thinking outside the box and doing things
others who had gone as much as a decade before us. that other people dislike, distrust or do not understand.
We applied the learnings in a way that provided a That is the essence of entrepreneurship.
unique solution. Interestingly, we did it at a time
when antibodies were completely discredited because
of the earlier failures. The combination
Shaping the Future, 40 Years of Innovation 37
WHAT THEY DO
MILESTONES
Sector: Biotechnology
Founded: 1986
Our scientific strategy was to use molecular biology to uncover the pathology
of neurological diseases and discover drugs that could beneficially change
the pathology and outcome of diseases like multiple sclerosis and Alzheimer
disease. This had not been done before, at that time.
Athena, and now Elan, was and is strongly focused on neurological disease.
40 016 _ StrataCom
Dick Moley
President, CEO and Chairman
Our persistence has been the key to our success. It superconductor ship propulsion motors for the U.S.
has allowed us to optimize our development cycle of Navy and even superconductor wind turbines.
transferring our advanced material from the lab to
the manufacturing floor, to the market place and to It’s been a terrific 22 years. We’ve been constantly
customer adoption. creating, adapting and changing directions as we
developed our technologies, products and solutions
American Superconductor has managed to turn and learned more and more from our customers.
brittle ceramic materials into robust superconductor And through it all it’s been very gratifying to know
wires that can be utilized in many electrical that what we are doing is bringing valuable new
applications, including power cables that eliminate energy solutions to the world.
choke points in power grids, 50,000 horsepower
Shaping the Future, 40 Years of Innovation 43
WHAT THEY DO
MILESTONES
Sector: Biotechnology
Founded: 1987
Number of Employees as of
12/31/08: 3,400
Gilead focuses on therapeutics with These products would not exist today
the potential to improve the care of without the help of many institutions,
patients with unmet medical needs. including Venrock, which provided
For HIV, we have revolutionized funding important to the growth of
the way the disease is treated by our company.
developing once-daily therapies with
better efficacy, safety and resistance We owe our continued success to good
profiles. This simplified approach science, our focus on doing a few things
to HIV treatment has brought more at a time and doing them well, and our
individuals into care and has helped inspired team of individuals. For the
transform HIV infection into a long- future, we will leverage our expertise
term treatable disease. in viral diseases in other therapeutic
areas, including cardiovascular and
respiratory diseases.
Headquarters: Naperville, IL
48 020 _ Spyglass
Doug Colbeth
CEO
Spyglass was influential as an early pioneer in the technologies to companies so they could make any
World Wide Web and the first Internet software device Web-enabled. We were able to help large brand
company to conduct a successful IPO. name companies like Microsoft leverage the tremendous
opportunities afforded by the World Wide Web.
Prior to the Web, we were developing image analysis
software for scientists and astrophysicists. One of our For a serial entrepreneur involved with multiple start
early customers was Tim Berners-Lee, the creator of up companies today, it is hard to imagine there will
the World Wide Web paradigm. Through Tim’s efforts be another technological development as impactful
we immediately recognized the World Wide Web would as the World Wide Web. However, I find the great
dramatically change communications and commerce entrepreneurs keep searching for those new breakthrough
on a global basis. We went on to provide embedded opportunities, regardless of the odds.
Founded: 1993
Number of Employees as of
12/31/08: ~2,000
In 1993, when the Internet revolution just started, Check Point was among the earliest
companies to identify the immense potential of the Internet and foresaw the advantages
businesses could gain by using the Internet securely. We entered the market with a breakthrough
technology that, within a few years, became the de-facto standard in Internet security.
MILESTONES
Sector: Biotechnology
Founded: 1993
Number of Employees as of
12/31/08: ~1,100
Headquarters: Cambridge, MA
We founded Millennium based on the genomic In order to accomplish what we did, we hired
revolution – identifying the right target for great people and we created a culture where
the right disease for the right person. We had great people can do great things. That’s what
a major impact on how people think about we did better than anything. We are also very
personalized medicine; we were certainly one proud of the fact that today there are thirty
of the first companies to talk about integrated CEOs, CSOs and VC’s in the Cambridge
drug discovery, bio-markers and personalized area that grew up at Millennium.
medicine. As the company evolved, we developed
a very important cancer drug (VELCADE) For me, I love the biology. It’s just the idea of
which today has over $1B sales world wide. bringing people together to do things that have
And most importantly, VELCADE is making never been done before. I think that’s the most
a great difference in many people’s lives. exciting thing that a person can do.
Founded: 1994
Headquarters: Milpitas, CA
Founded: 1995
56 024 _ DoubleClick
Dwight Merriman
Co-founder and CTO
Kevin O’Connor
Co-founder, former CEO and Chairman
DoubleClick played a key role in creating the the best and most efficient way. We didn’t want Kevin Ryan
advertising infrastructure that allowed websites to simply establish good market share, but President and CEO
to monetize their inventory. Without this rather dominate market share in every market
economic model, there wouldn’t be hundreds of or country we operated. Finally, in hiring,
thousands, millions of content sites out there. we preferred raw talent – intelligence and
competiveness – then skills. The combination
We were able to make an impact, first because of our technology, our customer solutions and
Dwight created a piece of technology as our team equaled unrivaled success.
the core underlying infrastructure that was
fundamentally better than whatever anyone else And finally, we always had fun – what good is
had created. And second, we focused on how to life without fun?
solve our customers’ problems in
MILESTONES
Sector: Healthcare IT
Founded: 1997
Headquarters: Watertown, MA
1998 Celebration
58 025 _ athenahealth
Todd Park
Co-founder and Board member
Jonathan Bush
Co-founder, CEO, President and Chairman
MILESTONES
Sector: Biotechnology
Founded: 1998
Number of Employees as of
12/31/08: ~1,500
Genome Analyzer
60 026 _ Illumina
John Stuelpnagel, D.V.M.
Co-founder and Fellow
Jay Flatley Illumina promises to change the way we manage our healthcare. In
President and CEO the last few years alone, we’ve made tremendous progress with high-
throughput genetic analysis products. Particularly, researchers now have
the ability to sequence organisms beyond humans, and do it very, very
inexpensively. Studies that were unimaginable just a few years ago are
now possible, and helping to change the world with improved health
care, optimized food sources and smarter conservation.
Headquarters: Cambridge, MA
62 027 _ Ironwood
Peter Hecht
Co-founder and CEO
Ironwood is building the next great Ironwood has built a passionate, focused
pharmaceutical company. and experienced team that knows what drug
innovation looks like so we can create, develop and
The challenge in the pharmaceutical industry commercialize innovative human medicines that
is inciting real innovation and creating new make a significant contribution in patients’ lives.
medicines. The current product creation and
product development model is extremely difficult It’s so great going to work everyday with people
and the process is counter-productive to the I love and respect. One of the treats of being an
discovery and marketing of new drugs. entrepreneur is that you get to influence what we
are building together, to influence the outcome.
MILESTONES
Sector: Alternative Energy
Founded: 1998
Headquarters: Cambridge, MA
66 029 _ Endeca
Steve Papa
Founder and CEO
MILESTONES
Sector: Biotechnology
Founded: 1999
Number of Employees as of
12/31/08: ~225
68 030 _ XenoPort
Ronald W. Barrett, Ph.D.
Co-founder and CEO
Founded: 2001
Headquarters: Sunnyvale, CA
Infinera at Nasdaq
70 031 _ Infinera
Jagdeep Singh
Co-founder, President and CEO
Our goal when we founded Infinera was to develop a based on our photonic integrated circuits for more than
disruptive technology, photonic integration, and use four years and there is no other company shipping large-
that to change the fundamental economics of optical scale photonic integrated circuits or even claiming to be
communications for our customers. When we started close to shipping such devices. We believe that photonic
the company, the experts told us it couldn’t be done. integration is the only technology that will enable optical
We didn’t know if we could do it. But we knew that systems to scale to support the Internet growth we are
if we could do it, we could change this industry forever. expecting in the coming years.
We are grateful that Venrock had the vision to back us
back in 2001 when we started Infinera. In the end, being an entrepreneur is about identifying
an important problem that needs solving, and putting
It’s now 2009, and Infinera is number one in together all the pieces that make up the solution, from
shipments of long-haul optical systems in North the team to the technology to the funding to profitability.
America, with more than 50 customers worldwide, The more important the problem being addressed,
including some of the most respected names in the the bigger the opportunity and the more contrary to
telecom industry. We have been shipping our systems conventional wisdom the solution is, the more fun.
MILESTONES
Sector: Security
Founded: 2001
72 032 _ Vontu
The key element that led to
Vontu’s success and innovative
nature was our team.
Headquarters: Waltham, MA
74 033 _ Adnexus
Dr. John D. Mendlein
Adnexus possessed a competitive edge Former CEO
comprised of an innovative drug
discovery technology from academia, a
promising new drug class and R&D
veterans of compelling biotech products. I feel incredibly privileged that I work
Our scientists were magicians in how everyday with remarkable people
quickly they could advance our new focused on bringing life to novel
drug class, Adnectins. It is a very therapeutic ideas that can potentially be
unique and rewarding opportunity to used by millions of people to make their
make a drug; it is an even more unique lives better. That is ferociously cool.
and rewarding opportunity to make a
whole new class of drugs.
76 034 _ PGP
Phillip Dunkelberger
President and CEO
MILESTONES
Sector: Biotechnology
Founded: 2003
80 036 _ Inrix
Craig Chapman
Co-founder and CTO
Bryan Mistele
Co-founder and CEO
MILESTONES
Sector: Digital Media
Founded: 2005
82 037 _ Adify
Russell Fradin
Co-founder and CEO
MILESTONES
Sector: Biotechnology
Founded: 2005
Headquarters: Clinton, NJ
84 038 _ Ikaria
David Shaw
Executive Chairman and
Chairman of the Board
Daniel Tassé
President and CEO
90
On risking money in venture capital enterprises, 1953:
Laurance S. Rockefeller
What we want to do is the opposite of the old system of holding back capital
until a field or idea is proved completely safe. We are undertaking pioneer projects
that, with proper backing, will encourage sound scientific and economic progress
in new fields – fields that hold the promise of tremendous future development. 6
LSR Eastern Air Lines, July 1946 –Eastern Air Lines maintenance
base – Miami, FLA – Propeller shop – Propeller so precisely
balanced, Mr. Rockefeller’s handkerchief turns it. 7
92
LSR Piasecki, 1954 –Laurance S. Rockefeller
with Frank N. Piasecki, chairman of the
Piasecki Helicopter Corporation. 12
On “frivolous needs” and the need to scale down our standard of living, 1973:
94
On the similarities of venture capital and philanthropy, 1955:
The XF-88, McDonnell Aircraft Corporation, St. Louis, Missouri, August 11, 1948 19
…People today want progress without risk. Nobody wants to take chances they don’t have to, but
in this whole power field [nuclear energy] there’s a tendency for the public, or spokesmen for the
public, to want progress without risk. Atomic power is the hope of having power ultimately with
nominal pollution. The hope of fusion being harnessed is the great hope of mankind: To be able
to meet the needs of people – basic needs, not frivolous needs – and at the same time not use up
resources, and to do this with minimal pollution…I believe this: that science gave us the tools to
misuse. Now’s no time to lose faith in science, but simply to guide it, and to develop the additional
tools to overcome pollution on the one hand, and meet the basic needs of poverty and growth on the
other. This is a tension and a conflict. 20
Ultimately, it’s about the investment team working closely with the entrepreneur to
shape strategy, build organizations, attract talent and customers, and develop critical
industry alliances. Together, Venrock and our entrepreneurs will continue the business
of innovation and to shape the future.
98
Bryan Roberts, Ph.D. Ray Rothrock David Shaw
Partner Partner Partner
Venrock since 1997 Venrock since 1988 Venrock since 2004
Illumina, athenahealth, Ironwood, Spyglass, DoubleClick, Check Point
XenoPort, Sirna, Ikaria Software, PGP, Vontu, Tri Alpha Energy,
Transonic Combustion
100
Laurance Spelman Rockefeller
(May 26, 1910 – July 11, 2004)
102
13 Carol Lynn Yellin, “Some Quotations from LSR,” p. 23, LSR Papers, RG
43, Box 75, Folder Seitel Interviews Background Material, RAC, taken
from Walter Cronkite’s interviews with Laurance S. Rockefeller for CBS
Reports documentary, “The Rockefellers,” 1973.
14 LSR Photos, Acc. 2007:17, Box 46, Folder Itek, Rockefeller Family
Archives, RAC.
16 Carol Lynn Yellin, “Some Quotations from LSR,” p. 22, LSR Papers, RG
43, Box 75, Folder Seitel Interviews Background Material, RAC, taken
from Walter Cronkite interview with Laurance S. Rockefeller for CBS
Reports documentary, “The Rockefellers,” 1973.
17 LSR Photos, Acc. 2007:17, Box 46, Folder EAL, Rockefeller Family
Archives, RAC.
19 LSR Photos, Acc. 2007:17, Box 46, Folder McDonnell Douglas, RAC.
20 Carol Lynn Yellin, “Some Quotations from LSR,” p. 22, LSR Papers, RG
43, Box 75, Folder Seitel Interviews Background Material, RAC, taken
from Walter Cronkite’s interviews with Laurance S. Rockefeller for CBS
Reports documentary, “The Rockefellers,” 1973.
21 Those Rockefeller Brothers, by Joe Alex Morris, Harper & Bros., 1953,
page 139.