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TSJ Fund. Venture capital is a type of private equity capital typically provided by professional, outside investors to new, growth businesses. Generally made as cash in exchange for shares in the investee company, venture capital investments are usually high risk, but offer the potential for above-average returns. A venture capitalist (VC) is a person who makes such investments. A venture capital fund is a pooled investment vehicle (often a limited partnership) that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans. Venture capital can also include managerial and technical expertise. Most venture capital comes from a group of wealthy investors, investment banks and other financial institutions that pool such investments or partnerships. This form of raising capital is popular among new companies, or ventures, with limited operating history, who cannot raise funds through a debt issue. The downside for entrepreneurs is that venture capitalists usually get a say in company decisions, in addition to a portion of the equity. Structure of the funds: Most venture capital funds have a fixed life of 10 years, with the possibility of a few years of extensions to allow for private companies still seeking liquidity. The investing cycle for most funds is generally three to five years, after which the focus is managing and making follow-on investments in an existing portfolio. This model was pioneered by successful funds in Silicon Valley through the 1980s to invest in technological trends broadly but only during their period of ascendance, and to cut exposure to management and marketing risks of any individual firm or its product. In such a fund, the investors have a fixed commitment to the fund that is "called down" by the VCs over time as the fund makes its investments. There are substantial penalities for a Limited Partner (or investor) that fails to participate in a capital call.
Our Products and Services include: newsletter Quarterly reports summarizing PE & VC investments. Events that bring together investors and entrepreneurs in a focused manner Venture Intelligence products are your one point source for news, information and analysis on: Private Equity, Venture Capital and M&A deals Companies looking for investors and M&A deals New Funds being raised CEO and board-level changes at key companies Tracking Private Equity and Venture Capital investments. Make it your one point source for news & analysis on: Venture Capital, Private Equity, IPO and M&A deals Hi-Tech and other companies looking for investors CEO and board-level changes involving executives. Contact InformationCall our office today to set up an appointment. Learn more about how we can help you, and learn more about the other services that we can offer you. All messages we receive will be answered as soon as possible. We look forward to hearing from you.
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