Consultant in investor relations for venture capital and private equity,
with experience at three venture firms – VantagePoint Capital Partners,
Bay Partners and Kodiak Venture Partners.
Has served as primary contact with hundreds of venture fund limited partners, domestic and international, developing detailed ongoing communications, portfolio financial updates and meeting presentations.
Has managed communications and public relations for major fundraising efforts, meetings with prospective investors, and preparation of due diligence questionnaires and related documents.
Similar to a board of directors, the advisory committee of a VC firm is very powerful. It can fire the general manager, dissolve the fund, or even dissolve the venture capital firm. Usually comprised of the fund's most significant limited partners, a seat on the committee is prestigious and sought after. It can be used as incentive when the firm is fundraising.
Cambridge Associates publishes a quarterly ratings that venture capital firms use as a benchmark.
The venture capitalists who manage a VC fund are called "general partners." They chose the companies the VC firm will back, structure the funds and determine the amounts to invest in each individual venture. They keep a close eye on the progress of each investment, seeking the most profitable "exit" for their investors. Along with the VC fund's advisory committee, the general partners have a fiduciary responsibility to the investors.
Internal rate of return (IRR)
This measures the annual rate of return on an investment. It's often used to compare the profitability of different funds.
International Limited Partner Association (ILPA)
Once a networking club, the ILPA sets guidelines regarding transparency and disclosure to the limited partners that most venture capital firms now tend to follow.
The investors in a VC fund are called the "limited partners." They come from a variety of different financial categories, including institutional investors such as pension funds, insurance companies, endowments, foundations, family offices, and high-net-worth individuals. The largest and most prestigious limited partners are often invited to be on the VC fund's advisory committee.
Venture capital (VC) is the financial capital provided to early-stage and start-up companies that are expected to experience a high rate of growth. The venture capital fund earns money by owning equity in the companies in which it invests. The companies that receive funding from VC firms are often introducing a new technology or business model. VC has been very active in high tech, biotechnology and IT. VC is a high-risk investment arena that is not regulated by the SEC.