Most successful companies have a very interesting story about how they were founded. Private equity firm HGGC is no different. The company was started with very little fanfare in 2007. In the years since then, it has grown into a massive company with literally billions of dollars of assets. It was not simple luck that allowed this company to become this big and powerful. It all started with the idea that three men had in late 2006. They had all been working at various investment companies around the world. They wanted to join forces and poll their resources for the purpose of creating a private equity company that would be different than all the rest. HGGC was born as a result of this idea.
HGGC did not have much capital when it started. What it did have was a bunch of skilled people who were dedicated to making the company a success. They were very careful with their investments early on. This is a tradition that would continue into the present. One of the things that the company is best known for is how they carefully examine each investment before they commit money to it. This methodical approach was criticized by many people when the company was new. However, the results that HGGC was able to produce were able to change the minds of many people.
The company knew very early on that they wanted to have technology play a very large role. There were various algorithms that were being used for investing purposes. They hired people to design new algorithms that were much better than the ones that were being used by some of their competitors. The advanced technology proved to be a big benefit to the company. The algorithms allowed the company to select many profitable investments that they otherwise might have ignored completely.
The company wanted to be based in CA because of the nice weather. They also wanted to be close to the heart of the tech world. This is why they eventually settled on Palo Alto to build their headquarters. That have been based in that city since the beginning.