Staples founder to head new consumer fund

LEXINGTON, Mass. and MENLO PARK, Calif. Highland Capital Partners, a leading venture capital firm, today announced the closing of Highland Consumer Fund I. The $300 million Fund will focus exclusively on investment opportunities in consumer-facing enterprises. In conjunction with the closing, Tom Stemberg and Ted Philip will lead the Fund as managing general partners.

Stemberg pioneered the office superstore industry when he co-founded Staples in 1986. As ceo, he propelled Staples' business growth through store expansion programs, an office products delivery business, a growing international presence, and e-commerce operations, ultimately creating an industry-leading company with $18 billion in sales. Since joining Highland in early 2005, the industry veteran has led a number of new investments in consumer-focused companies. In addition, he currently serves on a number of company boards, including CarMax, lululemon athletica, PetsMart and The NASDAQ Stock Market.

Stemberg is teaming with Ted Philip in leading the Fund. During his 20- year career, Philip has been involved with a variety of consumer products and services businesses, including media & entertainment (Disney, Lycos), children and family products (Hasbro), and recreation/lifestyle products (Bombardier Recreational Products). At Lycos, Philip was a founding member of the team, serving at various times as the president, coo and cfo. He helped take the company from a start-up venture with less than $2 million in funding to an international public company with operations in 42 countries.

"We're excited to launch a new Fund committed to assisting entrepreneurs in building the next generation of exceptional consumer-facing enterprises," stated Tom Stemberg. "Since the technology boom of the late 1990's, the consumer market has been underserved by the venture capital community. Through a focused approach and strategy, we look to address that opportunity immediately."