ack in June of this year, Drive Capital announced $1 billion in capital commitments, as the company founded by two former Sequoia Capital Partners who wanted to make their mark within the Midwest.
According to TechCrunch, investors in the Columbus, Ohio-based firm have had some challenges, and aren’t very happy about it.
According to Columbus Business First, co-founder and VC veteran Mark Kvamme talking with potential backers about a new fund, the Ohio Fund, which will apparently invest in multiple asset classes, including other funds, public stocks, private companies in Ohio and infrastructure, with the idea to “focus on the future economic vitality of Ohio”.
Per TechCrunch, this is the letter that was sent out to Drive’s limited partners:
“Dear Limited Partner:
This week an article was published indicating that our Partner Emeritus Mark Kvamme is launching a new investment fund. All of us at Drive were surprised by this news, as we are sure you were too. While we will not send you a note each time a new article about Mark is published, we feel that in the spirit of being a good partner, it’s appropriate to provide you with a transparent update about this situation and our relationship with Mark.
After the article was published we spoke with Mark and learned that the prospect of him raising a new fund was leaked to a journalist from an unknown source. According to Mark, he has not yet determined what he is going to do next. Raising a new type of fund is something he is considering, along with other options in public service and personal endeavors.
We have a formal separation agreement with Mark that prevents him from starting a competitive firm or fund to Drive. Please know that this was a heavily negotiated agreement to ensure that it substantially protects Drive, our Limited Partners’ interests, and everything we are building toward at Drive.
Again, we do not intend to communicate with you each time a new article is written about Mark, but in this instance, we thought it appropriate to provide clarification. Should you have any questions, please do not hesitate to reach out [contact information redacted by TechCrunch].
The Drive Team”
Check out the report for more.