A Private Equity Affair

When Summit Partners of Boston approached Eric Fish about a possible investment, the 42-year-old founder of San Francisco's GoldenGate Software took his time thinking it over. Fish had launched the $15 million, 100-employee company in his home in 1995 without venture capital or even a bank loan. GoldenGate, which backs up data and records business transactions for corporate clients, was cash flow-positive and debt-free. "I'd heard stories about venture capitalists taking control of a company. That was my biggest fear," Fish says.

So Fish called entrepreneurs who had worked with Summit. He wanted to know if the entrepreneurs had kept control of their companies and how Summit reacted during down quarters. Reassured that he wouldn't be muscled out, Fish agreed to a $23 million investment in May. Summit got a minority stake and two seats on the board.