The Managing Partners of Discovery Group began to extensively research the micro-cap valuation anomaly in 1997 in conjunction with their investment banking practice at Piper Jaffray. In 2002, Discovery Equity Partners was launched with initial capital investment from the Principals, Piper Jaffray and several former investment banking clients. The operation reached its funding objective in 2004 through a successful capital raise with several prominent institutional investors. The current Principals bought out Piper Jaffray's interest in 2006. Today, Discovery Group is exclusively owned by the investment team.