From Idea to Success by Gregg Fairbrothers & Tessa M. Winter

Author:Gregg Fairbrothers & Tessa M. Winter
Language: eng
Format: epub
Publisher: McGraw-Hill Education
Published: 2011-07-14T16:00:00+00:00

In contrast to the unstructured world of angel investing, venture capitalists are experienced investment professionals who work in formal partnerships. These limited partnerships are organized to raise money from limited partner investors—generally foundations, endowments, pension funds, and wealthy individuals—and invest in early-stage companies. They make equity investments in young companies with the potential for rapid growth and exits at high multiples of their investment over a time horizon of 3 to 10 years. They raise money in discrete funds and then make 10 to 25 investments out of each fund over a period of a few years, assist in the development of the companies, and often facilitate the eventual sale, merger, or public offering of the companies. The investment model was created in the late 1950s mostly on the West Coast by a pioneering group of technology-focused investors, including Tom Perkins, Don Valentine, Arthur Rock, and Dick Kramlich, among others. A documentary film produced by the venture capitalist Paul Holland of Foundation Capital9 tells the story of the creation of this investment industry that went on to become one of the great engines of innovation in the last century, growing companies such as Intel, Apple, Cisco, Atari, Genentech, and Tandem.

Tuck’s Center for Private Equity and Entrepreneurship compares angels and venture capitalists in Table 12–310:

Table 12-3 Angels and Venture Capitalists Compared

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.