风险投资公司的不同形态(英文).ppt

Private Equityand Venture CapitalLecture 2: different types of VC firmsVC firms and other investors• There are a total of 7 different types of VC firms in additional to angel investors: – private independent venture capital partnerships – private small business investment companies – public venture capital companies – venture capital subsidiaries of large corporations – state venture capital funds – university related incubators – different tax treatment than other VC – have to concern their stock prices – publicly available informationBenefits to corp VC subsidiary-1• Characteristics: only One LP!!! • Derive attractive financial returns • develop technology licensees, manufacturing rights, supplier agreements • control supplier uncertainty • identify flourishing industries • spin off businesses • generate new products • learn the dynamics of a particular marketplace • gain exposure to new markets and technologiesBenefits to the corp vc subsidiary2• Product marketing rights: – small firms are often happy to have larger corp sell their products. • Acquisition candidates: – GE wanted to acquire a CAD/CAM co, but bit low, later, it acquired a similar co. • a window on technology – the most notable benefit that large corp invest in small firm is the window to gain new technological development – the last decade, the biggest 10 AUS electronics corp did this.Benefits to the corp vc subsidiary3• Motorola focus on looking for technologies that are going to have a major impact on our core businesses. Just as Cisco tends to acquire entire products, we tend to look at technology suppliers.• These startups feel that the VCs don't understand their technology. High tech companies, on the other hand, may be able to understand the genius of what the entrepreneurs are doing. These companies have their own engineers who are experts in the field.Benefits of corp vc to investee co• An established customer base • credibility with customers and suppliers • credibility with bankers and other financial sources • general assistance in managing the business • a merger partner • additional capital a flexible financing package • investing in its employees to start their own co. • sign a collaborative research contractProblems in corp vc subsidiary• Contradictory inv goals of the vc and the present corp • unwillingness on the part of the vc to invest in 7-10 yrs. • Conflicts of interest and legal problems • inconsistent goals of the corp and the entrepreneur of the new co. • limited investment opportunities • the difficulty of acquiring the funded company • complication involved in obtaining tech from the funded company • differences between organizational requirement for the corp and the investment portfolio. State venture capital funds• Originally from Massachusetts, (such as CDFC-- community development financial corporation) Connecticut, later other states • state funded to promote high tech, startups, and other socially beneficial projects • state government promote the programs by – private sources will get tax benefits – state money promotionsUniversity related incubators• Incubators: provide low cost laboratory and office space, state-of-the-art technical expertise and equipment, administrative supports, computer and library facilities. • Contacts with the vc, bankers, government officials. • Sharing ideas and contact among entrepreneurs • 1984, 40 incubators in the states, now about 400, especially in PA, IL, NY. • I.e. University city science center in Philadelphia. Affiliated with 28 universities and colleges in PA. To house 100 small co in its I million squ ft space.Investment banks and boutiques• Investment banks usually invest in large amounts • boutiques in a smaller scales: $1-10 million • commonly used arrangement in equity transactions is the so-called lehman formula -- 5-4-3-2-1: • 5% for the first million dollars of capital raised, 4% of the next, and so on. • Ex. The fees for a $3 million deal would equal to $120,000FVP: background• The existence of intermediaries b/w GP,LP • Angels investing $20-30 billion • Venture Capital Partnerships • why families would like this idea: – tax benefits: 39% income tax, but 28% capital gain tax, 14% if invested into small business and long term – federal inheritance taxes, 50% on individuals > $18 million assets. Gifts to children $1 million • 1992, 3% of the families with > $1million net assets control 44% of US household financial assets Fox venture Partners• A $100 million fund: fund of fund concept • sources of fund: wealthy families • have to commit at least $2 million • why vc like this idea: – 1. The LPs may be valuable information source – 2. Avoiding vc dependent too heavily on institutional investors – 3. Less restrictive terms from families – 4. Want to involve in subsequent round of investmentsFox Venture Partners• FVP intended to invest $5 MM each in 20 funds – 35% well known funds – 40% specified by region or industry – 20%。