风险投资公司的不同形态(英文)课件

1、Private Equity and Venture CapitalLecture 2:different types of VC firmsVC firms and other investorsThere are a total of 7 different types of VC firms in additional to angel investors:private independent venture capital partnershipsprivate small business investment companiespublic venture capital com

2、paniesventure capital subsidiaries of large corporationsstate venture capital fundsuniversity related incubators & private sector incubatorsinvestment banking firmsPrivate independent VC partnershipLimited partnership: tax benefits10 years life, 2 year extensionTwo types of PIP:wealthy families-venr

3、ock associates,institutional investors - KPCB,two types of funds: usually $2-5 milliontraditional vc funds- investing in seed, or startupsturnaround or LBOsVC firms and VC fundsVC FirmVC fundVCfundVCfundVCfundVCfundVC limited partnership LPGPVC firms and VC fundsVC FirmVCfundVCfundVCfundPC-2PC-3PC-4

4、Pc-1PC-5The agreement of PE partnership -1Fund sizes, investment maximum and minimum.Number of investors, GP contributionstakedown schedule: both GP and LP do not like to pay the committed capital immediatelyfirst amount to be disbursed at closing: 10-33%, the dates of the subsequent payments may be

5、 set in the agreement.The agreement of PE partnership -3Management of the fundsize on any one investment, prevent GP from attempting to salvage a poorly managed investmentGP cannot have any share before LP get back their original capital, GP share as a call optionpercentage of the fund can be invest

6、ed in one deallimit GPs attempt to leverage the fund, limit the debt to a percentagelimit GP to coinvest between funds. GPs attempt to salvage the troubled investmentlimit GP to re invest profitsThe agreement of PE partnership -4GP activities- 5 restrictions1. Restrict GP to invest personal fund int

7、o the firm, may pay more attention, may not like to pull out if necessary2. Restrict on GP to sell their shares of the fund to others, reduce the incentive of the GP to monitor3. Restrict on future fundraising until a % of fund invested: additional fund require additional attention of the GP4. Restr

8、ict on GP for their other activities5. Restrict on hiring new GP with less experiencesThe agreement of PE partnership -5Types of investmentlimited size in any given investment classcannot invest into public securitiescannot invest into other PE fundscannot invest into areas with little expertiserest

9、rictions on foreign investmentrestrictions on LBOPublic venture capital companiesPublic vs private companies- different conceptsSome Big public vc firms called BDC - business development companiessome are SBICsbecause of they are public companies;different tax treatment than other VChave to concern

10、their stock pricespublicly available informationBenefits to corp VC subsidiary-1Characteristics: only One LP!Derive attractive financial returnsdevelop technology licensees, manufacturing rights, supplier agreementscontrol supplier uncertaintyidentify flourishing industriesspin off businessesgenerat

11、e new productslearn the dynamics of a particular marketplacegain exposure to new markets and technologiesBenefits to the corp vc subsidiary3Motorola 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

12、 to look at technology suppliers.These startups feel that the VCs dont 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

13、 vc to investee coAn established customer basecredibility with customers and supplierscredibility with bankers and other financial sourcesgeneral assistance in managing the businessa merger partneradditional capital a flexible financing packageinvesting in its employees to start their own co.sign a

14、collaborative research contractProblems in corp vc subsidiaryContradictory inv goals of the vc and the present corpunwillingness on the part of the vc to invest in 7-10 yrs.Conflicts of interest and legal problemsinconsistent goals of the corp and the entrepreneur of the new co.limited investment op

15、portunitiesthe difficulty of acquiring the funded companycomplication involved in obtaining tech from the funded companydifferences between organizational requirement for the corp and the investment portfolio. State venture capital fundsOriginally from Massachusetts, (such as CDFC- community develop

16、ment financial corporation) Connecticut, later other statesstate funded to promote high tech, startups, and other socially beneficial projectsstate government promote the programs byprivate sources will get tax benefitsstate money promotionsUniversity related incubatorsIncubators: provide low cost l

17、aboratory 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 entrepreneurs1984, 40 incubators in the states, now about 400, especially in PA

18、, 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 boutiquesInvestment banks usually invest in large amountsboutiques in a smaller scales: $1-10 millioncommonly use

19、d 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 $120,000Fox venture PartnersA $100 million fund: fund of fund conceptsources of fund: wealt

20、hy familieshave to commit at least $2 millionwhy vc like this idea:1. The LPs may be valuable information source2. Avoiding vc dependent too heavily on institutional investors3. Less restrictive terms from families4. Want to involve in subsequent round of investmentsFox Venture PartnersFVP intended

21、to invest $5 MM each in 20 funds35% well known funds40% specified by region or industry20% new funds5% international fundsthis is different from buyout funds ($20 MM in minimum)1994, 100.4 billion in PE, $32 billion in VC, the rest: 5% mezzanine, 2% distressed debt purchase362 fund in PE, among them

22、, 194 VCThe Concept of Fund of FundVC FirmVCfundVCfundVCfundVC-2VC-3VC-4VC-1VC-5Fox Venture PartnersThe resistance from the wealthy families:1. Information asymmetries, the one who need the service may not appreciate it.2. Agency problems, family financial managers3. Lack of resources, not using a l

23、ead investor, limited resource to market the idea.4. Ineffective marketing. Not show their track records5. The structure of the proposed incentive scheme.The size of the proposed compensation. Fox Venture PartnersThe challenges that FVP faces:the educational role: the FVP will teach the families abo

24、ut the fundspotential competitors are lots: on the concept of funds of fundssince families now hired their financial managers, the similar agency problems in the institutional investors appeared as wellYale University endowment originYale was established in 1701 by 10 Connecticut clergymen.The endow

25、ment started 1818, divinity school to offer theological instruction, several alumni made large gifts. Yale use the money on land and building, and to invest in corp, railroad bond, equitiesby 1899, the endowment reached $5millionYale U. endowment history1930, yale endow held 42% in equity, other U h

26、ad only 11%later 1930,then treasurer, Tighe decided to reduce equity %but stock market booming in 1950-60, end of 1960, the trustee wanted to increase the equity portion and to contract out the portfolio management to an outside advisorby bear market: 1969-1979, yales endowment declined by 46%Yale investments office -1997David swensen: 15 employee officeinvestment philosophy: different from other U. David likes Keynes maxim: worldly wisdom teaches us that it is better for reputation to fail conventionally then to succeed unconventionally. But he is