Tuesday, September 12, 2006

Ventur Capital 2.0...

Do you think Hedge Funds and V C Funds have anything in common. Do u believe in second generation of anything.  Thanks Kedrosky and Peter Rip

EarlyStageVC: Venture Capital 2.0: Not So Separate, But Still Equal

An early stage investment's alpha and beta are not affected by the inclusion of a distressed debt instrument. Now suppose the insight about how to price the distressed debt arose from knowledge you gleaned from the early stage investment. Or suppose a profitable public market short position arises from the insight acquired from chasing, but ultimately being outbid in pursuit of a 'hot' late stage investment. Or suppose experience with a PIPE provides a source of market and customer diligence to generate ideas about potential new Series A companies to form and fund. I refer to this as a Crossover Model of risk capital. The crossover model is a model for Venture Capital 2.0.

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