Steve Case, who guided AOL's explosive growth, said his Revolution Growth Fund has raised $450 million to be invested in promising East Coast start-ups.
Case, 53, said he wanted the fund, first established in 2005, to resemble the venerable Kleiner Perkins Caufield Byers in Silicon Valley, which seeded scores of companies including AOL, Sun Microsystems, Zynga and LSI Logic.
Two former AOL partners, Ted Leonsis, 54, owner of the NBA Washington Wizards and NHL Washington Capitals, and Donn Davis, 49, will co-manage the new fund from Washington, D.C.
Case, a Hawaii native, had previously focused his interest in businesses in the 50th state as well as an online payment service sold to American Express known as Revolution Money, as well as Revolution Health, which established medical clinics nationwide.
I'm happy to elaborate on anything relating to entrepreneurship in any phase, in any sector, in any region, he told International Business Times last month while finishing the capital raising.
Forty million jobs were created since 1991 by high-growth companies, Case told IBTimes. They are 'the secret sauce' that made us the leading source of economic growth.
The former AOL boss said Revolution would like to allocate between $25 million and $50 million in later-stage technology companies that have some consumer focus.
Aside from individuals, 24 institutions including Hillman Co., invested in Revolution Growth. Hillman CEO Joe Manzinger termed the management trio focused, driven and uniquely positioned to share invaluable insights.
Shares of AOL, which no longer has a Case connection, were at $14, down 34 cents, in late trading. Its market capitalization is $1.36 billion.