BUSINESS VIEW
MIDAS TOUCH
Formerly CEO of Esat Digifone, today Barry Maloney (BA ’80) is part of a
venture capital firm that has had the vision to invest in such goldmines as
eBay, Bebo and Betfair. He spoke to Jane Suiter
ARRY MALONEY, former chief of Esat Digifone worldwide job was a nightmare to manage from San
B
and one of the most influential venture capitalists Francisco. “Even going to the east coast took a day but I was
in London, is a man with a midas touch. With also responsible for Europe and Asia. My eldest was eight and
investments in companies from Bebo to Betfair while the lifestyle was fantastic, I was simply not there. We
through his company Balderton Capital, he and his decided that if we were to return to Ireland, it would need to
colleagues often make themselves and the be soon.”
entrepreneurs they invest in serious money. Coincidentally, Denis O’Brien came out on holiday and they
Upon leaving school in 1977, Maloney, like most of his discussed the mobile bid that O’Brien was putting together.
classmates, had no real idea what he wanted to do so he Maloney agreed to help out on the bid, particularly in the
repeated his Leaving Cert. Life at the Pre-University Centre in distribution sales and marketing aspects. “Denis then asked if
Dublin was good craic, laughs Maloney. While he did not earn I would come home and run it for him. We debated this as it’s
any extra points, he says, he did learn a lot about life and not always a good idea working for friends but I had spent 15
became firm friends with Denis O’Brien who was also years with US multinationals and so had never done a start-
repeating that year. After the repeats, Maloney went on to up. That new experience made it very attractive. I came back
study Arts in UCD and ended up doing a BA in Economics and in 1996 and we built it up until it was bought by BT
Politics. Three years later, on leaving UCD in 1980, Maloney in 2001.”
struck it lucky and landed a good job as a graduate trainee By now Maloney was 41 and had a big cheque burning a
with US multinational Becton Dickinson, which manufactured hole in his pocket. “It was very frightening,” he says. “I’m not
and distributed medical devices. the ‘kick back, relax and play golf’ type.” He met up with the
This experience still colours his thinking and he is adamant partners of venture capital fund Benchmark Capital who had
that the presence of US multinationals is crucial in set up the fund in Palo Alto in 1995. The five had made an
management training for young Irish graduates. “I was moved early investment in eBay, which is still probably the best
around, spending six months in manufacturing, distribution venture investment ever made. Their initial $3.5 million
and customer care. I learnt the management skills that I still eventually made them some $2.5 billion.
use today there. It is clear traditional manufacturing is just not By 2001, Benchmark Capital was looking to invest outside
going to last so it’s crucial the Government continues to the US. Maloney’s initial reaction was that he was not an
attract the likes of Google and Yahoo!. These are the accountant or an investment banker. But it was his
companies that will employ the graduates and give them the operational skills the partners wanted. The company, which is
management skills Ireland needs. I was lucky enough to now called Balderton, invests in some 65 plus companies
benefit from that and it is vital future generations also get it.” across Europe in all kinds of areas from software, to Web 2.0,
After four years with Becton Dickinson, he jumped ship via consumers, semiconductors and e-commerce, as well as green
Cleveland Consulting for Digital Equipment, where he was energy. Some of the better-known investments include
logistics manager before being moved to Geneva in Betfair, which has had a very successful 18 months and is now
Switzerland to become European pricings manager. In 1994, valued at £1.6 billion. MySQL, an open source database, was
he was offered a job with Xerox in the heart of Silicon Valley sold to Sun Microsystems for $1 billion, providing a fantastic
in Palo Alto where he was worldwide channel manager. At return, while a Chinese company Yinghi Solar has been listed
this stage, Maloney was married with children and the whole on the New York Stock Exchange.
family moved from Geneva to California. However, he says the Maloney has also invested in Irish firms, including Setanta
PAGE THIRTY FOUR UCD CONNECTIONS
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