Graphic.lyMedia Release -- DFJ Mercury, a seed and early-stage venture capital firm investing in information technology, advanced materials, and bioscience companies, today announced the close of DFJ Mercury Fund II, with $70 million in total commitments. As part of Fund II, several new institutional investors joined the significant support already provided by DFJ Mercury Fund I's high-net worth and family office investors. The closing of Fund II brings the firm's total capital under management to $100 million.

."DFJ Mercury has a core focus on technology transfer and incubation, with many of our investments originating through partnerships with universities, research institutions and regional technology incubators," said Blair Garrou, Managing Director of DFJ Mercury. "With the new fund, DFJ Mercury will continue its strategy of seeding and incubating the most promising start-ups and entrepreneurs in the technology ecosystems of Texas, Colorado, Illinois and Michigan."

DFJ Mercury Fund II will target a total of 15-18 investments, initially committing between $100,000 and $1,500,000 per company, up to a total of $4 million over the life of a company. To date, DFJ Mercury Fund II has made seven Series A investments, including: ShareThis, the leading web content sharing platform; ActaCell, a maker of high-power Lithium-ion battery technology for the automotive market; Graphic.ly, a cutting-edge digital content delivery system and community platform for comics and related merchandise; and Macheen, a provider of cloud services for connected devices.

"We designed our super-regional investment strategy to include states with four of the largest commercialization gaps in the country," said Ned Hill, Managing Director of DFJ Mercury. "We define a commercialization gap as the opportunity created by the deficit between significant research and development spend vs. limited venture capital activity. To date, this strategy has given DFJ Mercury the ability to invest in a variety of early-stage companies offering unique and game changing technologies."

DFJ Mercury's Fund I resulted in a number of successful portfolio companies including: Phurnace Software, a leading developer of software that accelerates the deployment and configuration of cloud-based web applications (acquired by BMC Software); Vertos Medical, a medical device company providing minimally invasive alternatives for surgical procedures to treat debilitating spinal conditions such as lumbar spinal stenosis (LSS); Alert Logic, the leader in SaaS delivered network security software for cloud environments; Glycos Biotechnologies, an innovator in using biotechnology to create renewable chemicals; and Illumitex, a manufacturer of industry-changing high-brightness light emitting diodes (LEDs).

"We are believers that technical and scientific innovation doesn't exist solely on the coasts," said Dan Watkins, Managing Director of DFJ Mercury. "Our goal with Fund I was to create a unique venture capital firm – seeding and creating capital efficient companies sourced in the middle of the country. We successfully accomplished this goal and look forward to continuing this advancement with Fund II."

About DFJ Mercury

DFJ Mercury is a seed and early-stage venture capital firm focusing on investment opportunities in the midcontinent. Headquartered in Houston, Texas, DFJ Mercury invests in compelling and novel start-up opportunities in information technology, advanced materials and bioscience. With over $100 million under management, DFJ Mercury seeks to partner with extraordinary entrepreneurs to build globally competitive businesses. Our team has broad experience and relationships with tech transfer offices and regional technology incubators. Our firm has a particular focus on university spin-outs and incubation, often investing prior to a business plan or management team being formed. DFJ Mercury is a Partner Fund in the DFJ Global Network of venture capital firms. For more information, please visit www.dfjmercury.com.