Rho Ventures Agrees To Take A 33% Stake In Bluefly Inc (BFLY)

Investment firm Rho Ventures has reached an agreement with online retailer Bluefly Inc (NASDAQ: BFLY) to buy $15 million of newly issued common stock in the company.

This would make Rho Ventures the company’s biggest investor with a 33% stake. Rho has invested $4.7 million so far of the total commitment at a cost of $1.70 per share.

Along with the Rho agreement, affiliates of Soros Fund Management LLC and private funds associated with Maverick Capital Ltd. converted about $3 million of convertible notes into common stock. With this deal, Rho and Soros can appoint two directors to Bluefly’s board and Maverick can appoint one board member.