Exclusive: Greg Sands forms new VC fund

June 8, 2012, 5:42 PM UTC

FORTUNE — Greg Sands, a longtime partner with Sutter Hill Ventures, appears to be spinning out and setting up his own fund.

According to a regulatory filing, Sands is raising upwards of $100 million for Costanoa Venture Capital. A source tells me that he’s nearing a first close on around $60 million, which would include around $30 million worth of portfolio company interests being contributed by Sutter Hill.

[Update: Now hearing that the first close is actually today. As for those Sutter HIll portfolio contributions, the positions will be split with Sutter Hill retaining around 50% of each interest, with the rest spun out to Sands at fair market value.]

Sands joined the firm in 1998 from Netscape, where he was the company’s original product manager. His current portfolio companies include Authentic Response, ChoiceStream,Connection Engine, Guardian Analytics, Inflection, Intacct, Nexxo Financial,QuinStreet, and Return Path.

He did not respond to a request for comment.

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