Benchmark Crosses the Ocean

Europe has plenty to gloat about in technology these days, from state-of-the-art cell phones to higher growth opportunities for Internet entrepreneurs and investors. Next up for the Old World is a venture fund run by Benchmark Capital, one of the most prominent -- and newest -- of the New World's VC community.

Benchmark said Monday it has formed a $500 million fund headquartered in London that will focus on European start-ups, particularly in wireless technologies. Benchmark general partner Robert Kagle said the new fund has hired two London-based general partners, each experienced in European investments. Kagle declined to name the new partners, however, presumably because they haven't officially left their current jobs.

The move into Europe is a first for Benchmark and a relatively unusual move for a Silicon Valley firm. Like most VC funds based on or near Sand Hill Road in Menlo Park, Calif., many of Benchmark's portfolio companies are within a morning's drive of the partners' conference room. Some of its more successful investments in the neighborhood have included online auction house eBay (EBAY Quote) in San Jose, business software provider Ariba(ARBA Quote) in Mountain View and Web consultant Scient (SCNT Quote) in San Francisco. ...