Flatiron Partners

Flatiron Partners was a seminal venture capital firm established in 1996, playing a pivotal role in the burgeoning internet economy of the late 1990s. Co-founded by Fred Wilson and Jerry Colonna as part of Chase Capital Partners, the firm quickly became a prominent investor in early-stage internet and new media companies based primarily in New York City. Flatiron's investment thesis centered on identifying and nurturing innovative digital businesses during a period of unprecedented technological expansion and market speculation, aiming to capitalize on the rapid adoption of the internet.

The firm built a portfolio of high-profile, and often high-risk, internet startups that epitomized the dot-com boom. Notable investments included online financial news provider TheStreet.com, e-commerce delivery service Kozmo.com, and digital currency platform Flooz.com. While some of its bets, like Half.com (acquired by eBay) and Yoyodyne (acquired by Yahoo!), yielded successful exits, others, such as Kozmo and Flooz, famously collapsed, becoming cautionary tales of the era's exuberance. Flatiron's strategy involved providing not just capital but also significant operational guidance and network access to its portfolio companies, aiming to accelerate their growth in a rapidly evolving digital landscape.

Flatiron Partners raised substantial capital, including its first fund, Flatiron I, at $150 million, followed by Flatiron II, a much larger $500 million fund, demonstrating the scale of its ambition and the capital available for internet ventures at the time. The firm's influence was significant, helping to establish New York City as a viable hub for internet startups alongside Silicon Valley. However, as the dot-com bubble burst, the venture capital landscape shifted dramatically. In 2001, Flatiron Partners was fully acquired by its parent, JP Morgan Chase, marking the end of its independent operations. Despite its relatively short lifespan, Flatiron left a lasting legacy, with its co-founders going on to shape the next generation of venture capital; Fred Wilson, in particular, co-founded Union Square Ventures, one of today's leading VC firms.