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DETROIT JEWISH NEWS

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q- ,A1

7/28
2000

62

INTERNATIONAL
NEWS PLUS

372 Oullette Avenue • Windsor, Canada

Katzman says none of the partners
"These companies need capital,"
has taken on the role of King Arthur.
says Katzman. "But they also need
"I'm the managing partner. I'm devot-.
practical management help — hiring,
ing full time to Camelot now But my
marketing, operations, developing
partners are deeply involved, too."
and executing strategies. We want to
The four partners are:
invest in companies that realize the
• Katzman, 40, who sold the home
value of our involvement."
products businesses he'd developed to
The partners get involved with the
Home Depot in 1997, becoming
companies they invest in, taking seats
president of the Home Depot Special
on boards, using their contacts, net-
Order Center. He left that position in
working, applying their management
April to manage Camelot Ventures.
and operational expertise — any-
• Nathan Forbes, 37, managing
thing they can do to insure the suc-
partner of a shopping center develop-
cess of the company and maximize
ment company based in Southfield.
the return on the fund's investment.
• Daniel Gilbert, 38, who sold his
Katzman thinks that's what makes
mortgage company, Rock Financial,
Camelot different from other venture
to software giant Intuit, Inc., and is
capital firms.
now CEO of Intuit division
Quicken Loans.
• Gilbert "Buzz"
Silverman, 44, president of
Silverman Companies, a resi-
dential developer based in
Farmington Hills.
The goal of Camelot
Ventures is to raise a fund of
$200 million from private
investors, corporations and
institutional investors like
insurance companies and pen-
Bob. Nathan and Buzz Silverman
sion funds. The partners feel
the goal can be reached in two
to four months. A minimum invest-
"We can provide both the capital
ment of $1 million is required.
and the experience. All the partners
Why a venture capital firm? -"We've
have run successful businesses them-
been very enthusiastic about getting
selves."
into the new-world type businesses,"
To date, Camelot has invested $15
says Katzman. "I'm fascinated with
million in various new-world firms,
the Internet in all of its aspects —
all of it from the personal wealth of
information, products and services,
the four partners. All investments
which can take the form of telecom-
have been with companies on the East
munications, hardware, software and
or West coasts. Considering their high
back-end services. But starting a new,
level of involvement, that keeps the
single-focus company in that arena
partners on the road much of the
can be very risky"
time. The partners are actively seeking
According to Katzman, there can
Michigan companies to invest in.
be no competition when you start,
Two of the most notable invest-
then suddenly there can be a lot of
ments are:
competition, all heavily financed. And
• A share of a $15 million invest-
there's little predictability. New tech-
ment in We Media.com , the first
nology can wipe out old overnight.
cross-media company designed specif-
And some Internet sectors are already
ically for disabled Americans, their
aging.
families and friends. The company's
The partners decided that it made
first product was We Magazine, a
more sense to minimize risk by diver-
glossy, consumer lifestyle publication.
sifying, to create a venture capital
It has since moved into the Internet,
fund that can invest in several differ-
providing the disabled community
ent companies in exchange for equity
with resources on health, sports, trav-
positions in those companies.
el, news, real estate and education.
Camelot wants to find enterprises
• A $6 million investment in
that are at the "expansion round" of
dash.com , developer of the World
their growth — companies that
Wide Web's first mobile shopping
already have a record of success, and
portal which consumers can use to
are at the point where they need to
save on products and services.
expand to the next level.
Dash.com was named one of the 25

.

best e-commerce sites by TIME
Digital.
There are three keys to success for
Camelot Ventures, according to
Katzman: good due diligence, diversi-
fication and utilizing the experience
of the partners.
"We're extremely thorough in our
due diligence," he says. "We research
the company top to bottom. We look
at the competition, and the markets.
And since we'll be involved, using our
own expertise, we like to look in areas
where one -of the partners has some
experience." Often, the in-depth
research turns up other companies to
invest in.
A unanimous vote of the partners
and the staff members who have
shepherded the deal is required before
any investment is made. And
Camelot never makes an investment
without having an exit strategy. They
want to be involved with a company
for 18 to 36 months, long enough to
make a difference.
And what kind of a return does
Camelot expect on its investment?
"Last year, the nationwide average was
a 50 prcent return, but that was really
extraordinary," says Katzman. "For
the past 20 years, the average has
been closer to 30 percent. We think
Camelot can be among the top earn-
ers, over 40 percent annually. That's a
return of 120 to 150 percent in three
years."
This means that over a 36-month
period of their involvement, Camelot
Ventures could turn a $5 million
investment into a $12 million return.
The company's investments will range
from $1 million to $10 million.
When Camelot Ventures is fully
operational it will have a staff of 15,
including the partners, research and
analytical personnel, -and administra-
tive employees. Offices are in the
Galleria Officentre in Southfield.
But the four friends are interested
in more than just business. Born and
raised in Detroit, they have strong
feelings for their community — its
roots and its future. To demonstrate
that interest, the partners are among
the 20 to 25 young businessmen par-
ticipating in Odyssey 2000, a leader-
ship training and educational pro-
gram sponsored by the Jewish
Federation of Metropolitan Detroit.
Katzman and Silverman are also pro-
gram chairs.
A series of education sessions with
lay leaders, historians, and other
experts will culminate in a one-week
trip to Israel in November. ❑