Venture Capital（十二）.pdfVIP

Venture Capital Overview of the Industry Many new venture Capital firms have sprung up in recent years, and long-standing firms have grown to manage the flow of capital and investment moneys available from new institutional funds, pension funds and individual wealth. These entities raise a pool or fund of money to make a significant investment in a startup or growing company. Money may come from the principals themselves, or from private investors, endowments or pension funds. The full spectrum of VC expands beyond the small private firms to include venture capital groups or affiliates of sell-side firms such as investment and commercial banks, VC divisions within large corporations, and direct investments by pension funds or insurance companies. There are also private equity and principal investment groups, private partnerships or other entities that invest their own money to take an equity position in a company. As with venture capital, these groups take an active role in restructuring or managing the company(ies) in which they invest. Though venture capital is very visible as an industry in the Silicon Valley, and in other technology-rich and capital-intensive geographical areas, such as Boston, New York, Tokyo, and London, it employs a very small number of professionals relative to investment banking and management consulting. The Harvard Business School Venture Capital and Principal Investment club estimates that there are about 600 firms, with just a few thousand professionals in the entire VC industry in the US. The typical privately held firm is composed of a few partners (senior or general partners and junior partners) with years of industry experience to schmooze and find the best companies or deals in which to invest a few senior associates or principals who are on the partner track a few analysts and associates to read business plans, run numbers and complete the due diligence necessary. T