angel and VC investors ppt

angel and VC investors ppt - Angel and Venture Capital...

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Angel and Venture Capital Investors
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Venture Capital
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The Modern VC Organization 1979 - 2000 Changes in Fed regulations allowed pension funds to invest in venture capital Investment grew from $482 million (1978) to $68.7 billion (2000) Limited Partnership dominates
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Limited Partnerships How do they work? Limited Partners (LP) provide a fixed amount of funds to be invested over a finite period General Partners (GP) make investment decisions & receive management fees of 1% - 3% of the invested funds. At harvest, LPs receive their investment back plus 80% of profits. GPs receive 20% of profits
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VC Firm Management Hallmarks of effective VC firms: The need for speed Rapid but quality decision making Systemization Evaluating investment opportunities Monitoring portfolio company’s progress
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Why Venture Capital? Why do Venture Capital firms exist? Entrepreneurial firms are rarely financed by conventional sources. .. Why does this problem exist? Can’t deal with: Uncertainty about the future Information gap Soft assets Market conditions
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Why Venture Capital? How do VCs handle these issues?
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angel and VC investors ppt - Angel and Venture Capital...

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