Led by general partners David Marquardt, John Johnston, Andy Rappaport, Andrew Anker and Mark Wilson, the August III Fund will continue to invest in leading edge infrastructure and communications technology and services companies.

Portfolio company investments reflect this strategy and are significantly affecting their respective markets, including Tumbleweed Software, Cobalt Networks, Silicon Image, Cygnus Solutions (recently acquired by RedHat), Telocity, TurboLinux and Epinions. As announced previously, August has already committed a portion of this new fund to the pending management buy-out of Seagate Technologies.

"We are looking for ideas and teams - throughout the information technology spectrum - that will make a long-term difference," said Andy Rappaport. "Whether the area is open source, wireless communications, Internet infrastructure, telecommunications or photonics, we invest in companies that we expect to become household names. Most importantly, because our strategy is to be actively involved as board members and advisors, our approach is to make fewer, but bigger investments. Our new fund further increases our ability to influence industries."

August Capital's first two funds, totaling $300 million, were committed to 34 companies. August I and II investments included Topica, Evite, Listen.com and ValiCert among others.

Founded in 1995, August Capital is a leading venture capital firm that invests in entrepreneurial teams throughout the information technology market spectrum. With more than 50 years of combined venture capital experience and dozens of successful IPOs and public company board relationships, August Capital partners have financed technology companies with an aggregate market capitalization of more than one-half trillion dollars.

August Capital is located at 2480 Sand Hill Road, Suite 101, Menlo Park, CA 94025. For more information, please visit www.augustcap.com.