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Venture Capitalists

In: Business and Management

Submitted By vnshah624
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1. What are the overall pros and cons for the three funds?
Pros Cons
Emergence Capital
Partners
Knowledgeable and experienced GPs
Less investment from GPs – Less skin in the game
Less VC competition for target companies 1 million minimum  More crowded investor pool  Less personalized
Early hit in the form of
Salesforce.com  Proof of concept of investment thesis
Narrow focus  Technology enabled services Uncertain GP dynamics  None of the them have worked together before as GPs
Valhalla Capital Partners $10 million minimum  Fewer institutional investors  More personalized Uncertainty around management fees Extensive VC and
Entrepreneurial network
Potentially limited number of target companies to go after
20 million investment by GPs
 More skin in the game
More LPs committed to the fund  More institutional buyin
Less VC competition 
Underserved region focus
More data available on GPs 
Easier to vet
Orchid Partners Could have more influence as one of the first institutional investors  They need us.
Only seed round investment 
Higher failure risk
8% preferred dividend if the firm returns < 1.5X
No experience in managing a VC fund Too many portfolio companies
Uncertain GP dynamics  None of the them have worked together before as GPs
High probability of not raising the entire fund
5 GPs high expense proportion to fund 2. If you were O'Malley, which fund or combination of funds would you invest in. What is your rationale? Just Valhalla for the following reasons:
a. We have four possible combinations of investments
i. Just Emergence  Uncertainty in the growth of technology enabled services, due to recent dot com bust. (Too narrow of a focus posing further investment risk) ii. Just Valhalla  Less risky relative to Orchid, potential good fit for Dutton’s first time VC investment. Valhalla has…...

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