What is a "VC fund?"

[Eric J in MN]

from June 2005: Can someone explain it?

http://www.dailykos.com/story/2005/6/16/144525/370

Training Democrats to do the right thing
by kos
Thu Jun 16th, 2005 at 11:45:25 PDT

"Now money is flowing into a VC fund that's looking to create an alternative to Fox News on the cable dial, while also building out other elements of a progressive media machine. The idea isn't to recreate what the Right did, but build a better machine tailored for the 21st century."
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What is a "VC fund?"

What channel?

[Eric J in MN]

1. Anyone know what a "VC fund" is? nt

nt

[Pithy Cherub]

4. Venture Capital

;)
They are known as "angels" in the tech industry...

[Eric J in MN]

8. Thank you (nt)

nt

[eallen]

9. Nope. Angels are individual investors.

Sometimes angels and VCs will invest in the same company. Sometimes, VCs aren't interested in working with angels.

[Pithy Cherub]

10. some "angels" band together to form VC firms or perhaps

you should become familiar with their other name: Private Equity firms.

[KharmaTrain]

11. Angels Are Usually Just Start-Up Funding

These are folks who will provide the capital for development or organization, then cash out when the patent or the IPO is launched. A VC tends to be in for the longer haul. An Angel can be a VC but isn't always the same thing.

I've been involved with these things for years.

[Pithy Cherub]

12. Understood. Me too.

Some "Angels" I knew went through the steps and eventually became a firm just for this reason. They were on my mind as I wrote because they did it as individuals sporadically and then it bcame their professional work.

[KharmaTrain]

14. I've Been On Both Sides

"Back in the day"...(translation: prior to the bubble burst of 2001), Angel funding seemed like it was popping up everywhere. Now it's tough sledding.

I've been involved with several start-ups...and definitely a game you only get into if you're willing to gamble everything. While I saw some of these groups strike gold (and platnum...lol), I've also been skunked...great intentions, but poor organization or other problems.

Right now is a good time to draw up plans...there are lots of VCs and other investors on the sidelines...good investments are hard to come by.

[Pithy Cherub]

15. Tough sledding, lately.

The rate of return and the speed within which it was to be acquired set up so many organizational dynamics that it literally made one's head spin. It is AMAZING to me how many investors and firms underestimate the human element that has to be present for the ideas to sustain plans over a period of time.

Now is a great time to scout for ideas or like minded individuals. My only caveat is to hold as high esteem for talent as one does for the cash flow/ROI projections. Watched epic disasters because of this!

Wish you well! :)

[KharmaTrain]

16. Thank You...It Can Be Real Rewarding

I've been involved in seeing some good people and ideas come to market...and part of the creative process that was always more about our common goal than it ever was about making a quick buck.

When you combine talents with the right people, this is how people get empowered and people move forward. I was fortunate to ride the wave of the 90's and sad to see how so much great entrepeneurship is so stifled today.

I'm picky on what I get involved in, and, hopefully there are some good things under the radar right now.

Cheers and best of luck to you as well...

[eallen]

13. What characterizes a VC fund...

A VC fund has two sides to its business. On the one side, it is investing in start-ups, hoping to hit one or two home runs. On the other side, it is soliticting investors, individuals and institutions, to put money into its funds, as a source for its startup plays. Often the firm will create one fund each year or two, separately organized. Until recently, they would use their success from their late 90 vintages to sell their newer funds. But that's not working so well right now, and quite a few firms have failed to close on their recent funds.

Some VC funds are from a dedicated institution, such as a large university.

Private equity firms typically work with a few investors.

[AnnInLa]

5. Could the "C" be for Communications? probably not

I don't know....but, if you find out, please let us all know...very interesting.

[Eric J in MN]

2. anyone know?

nt

[manic expression]

3. Google it....n/t

[Clark2008]

6. Its a venture capital fund

Venture capital is a term to describe the financing of startup and early stage businesses as well as businesses in "turn around" situations. Venture capital investments generally are higher risk investments but offer the potential for high to incredibly high returns. A venture capitalist (VC) is a person who makes such investments. A venture capital fund is a pooled investment vehicle (often a partnership) that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans. A limited partner is a person or organization who invests capital in a venture capital fund for financial gain. A general partner is a venture capitalist who manages the fund and makes investments. Investments by a venture capital fund can take the form of either equity participation or a combination of equity participation (typically with preferred stock) and debt obligation—often with convertible debt instruments that become equity if a certain level of risk is exceeded. In most cases, the venture capitalist becomes part owner or a member of the Board of Directors of the new venture. Most investments are structured as preferred shares—the common stock often reserved by covenant for a future buyout, as VC investment criteria usually include a planned exit event (an IPO or acquisition), normally within three to seven years. In case a venture fails, then the entire funding by the venture capitalist has to be written off.

http://en.wikipedia.org/wiki/Venture_capital

[Eric J in MN]

7. Thank you.

Now if we only knew who was involved, and when this channel will debut.