Tuesday, February 26, 2008

From Venture Capital to Growth Equity

There was a time when being a passive venture capital fund manager was the nice, cushy place to be. But when the IPO market dried up in the 2000s for tech startups, and large companies didn't have well-valued public stock to acquire tech startups from venture capitalists, then the real operations venture capitalists became their own market makers.

We did it by creating a BDC (a Business Developement Company, aka a "blank-check company") and rolled up a dozen operating, growing tech companies. Then they became the acquirers of some of our own startups.

It is a win-win situation. The slowly growing tech company get a new innovative technology to to take to their customers, and the startup got a platform and credibility to continue proving the next versions of their tehcnology.

Rachid Sefrioui Finaventures BDC - Economie & Entreprises - Premises d'une revolution technologique.pdf