Case 1 - Claflin - v2_Solutions

Case 1 - Claflin - v2_Solutions - Claflin-Ukraine Fund 1995...

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Claflin-Ukraine Fund 1995 `
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1. Describe the Fund's venture capital model/approach for investing, working with the  companies invested in, and earning resources. Evaluate the approach. Is it viable?  The investment approach  for the Claflin  venture  capital fund focuses on consumer  product markets in Ukraine for which there are high demands. In addition, the newly  formed country has an increasing disposable income base and competition is virtually  non-existant. The Ukraine Fund has chosen to remain privately held with an environment  in Ukraine that is fostering entrepreneurship at this time.  The actual Fund gives discretion for decision-making to the portfolio companies in which  the fund has invested its assets. There are two factors that make this approach valuable in  the sense that the new citizens are able to make decisions, rather than being entirely  managed by American companies, and in the long run, the belief exists that the financial  institutions in the country will carry a strong Ukrainian identity. Therefore, it is necessary  to have a team with strong Ukrainian roots, and give the entrepreneurs autonomy in the  decision-making processes. As stated in the case, Tom Claflin describes business in 
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This homework help was uploaded on 02/19/2009 for the course NBA 5930 taught by Professor Goldman,melvin during the Spring '07 term at Cornell University (Engineering School).

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Case 1 - Claflin - v2_Solutions - Claflin-Ukraine Fund 1995...

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