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NVCA Announces Benchmarking Joint Project With Cambridge Associates Members Receive Immediate Benefits; Future Online Tool |
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On
August 4, 2009, NVCA announced a strategic partnership with Cambridge
Associates. Over a number of years, Cambridge Associates has been tracking the
US venture capital fund information on behalf of its clients. The fund cash
flow information and the underlying portfolio company cash flows have been carefully
entered in their internal database. After many months of due diligence and hard
work by NVCA's Research Committee, we are pleased to announce our strategic
partnership with Cambridge Associates to provide comprehensive, independent
U.S. venture capital performance statistics to a broad audience and provide
immediate and longer term benefits to NVCA members. The press release can be viewed on the NVCA website.
Under the
agreement, the NVCA will endorse the Cambridge Associates U.S. venture capital
return benchmarks and together the organizations will offer quarterly IRR data
and trend analysis to the public.
Additionally, NVCA members will have access to enhanced, aggregate
benchmark data through the Association's website. Here are some of the highlights of this new arrangement and
what it means to our members:
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Policy Reform – Impact On The Venture Community |
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The whirlwind pace for legislative activity that
President Obama launched when he took office in January of this year looks
likely to continue into the fall, as Congress seeks to hand the President
victories on his major initiatives including health care reform, a financial
system regulatory overhaul and climate change. NVCA has been active on all of these fronts and more,
attempting both offensively and defensively to help policy makers understand
the role of the venture community in job creation and economic recovery for the
nation.
Robert Nelson, ARCH Venture Partners, testifying before Congress on behalf of NVCA
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Exit Slowdown Leads to Renewed Focus on Pay-to-Play Provisions |
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Written
by Taylor L. Stevens1
The economic downturn has
contributed to a dramatic slowdown in exit opportunities for venture capital-backed
companies. The growing number of
later-stage companies, many of which may have been ripe for an acquisition or
public offering in more favorable market conditions, has forced a shift in the
stage of investment focus among many venture capitalists. Investors now face difficult decisions
regarding which portfolio companies will continue to receive funding through
extended lifecycles.
Not all investors are
able or willing to continue to risk additional capital during challenging
economic conditions. Those that
are, however, may expect the other investors in the syndicate to share in that
risk. Increasing concerns over
future funding participation by existing investors have led to a renewed focus
on pay-to-play provisions for many venture capitalists. Against this backdrop, and amidst
current market conditions, it is prudent for investors to understand the
mechanics of pay-to-play provisions and the scope of available protections
against such techniques.
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2010 NVCA
