| Topic Name: |
Any info on Duchossois TECnology Partners? |
| Message Name: |
Reply |
| Date Posted: |
05/05/2002 |
| In Reply To: |
I appreciate your time and thoughts, and I can tell that you are experienced as well.
However,The VC paid in capital is fifty million dollars (Small), one year old, invested in three technology companies that have proper client base and proper structure in place. You are right about the existing performance of the portfolio and it's IRR to be able to raise more funds.
1) Given the technology boom and bust, do you know of any VC that is facing a hard time on getting quality deal flow, and what is quality deal fow dependent on? Is it the value addition in terms of post fund raising? or it it the contracting issues and technology competitiveness?
2) Other issues yu talked about, all its there, such as partnering with consultants, lawyers, etc.
3)Since you are joining iBnaking, if you don't mind, could tell me how did the transition from VC to ibanking work out for you. I mean why didn't yuo continue hunting for a VC or is it in your agenda for the future after gaining experience in iBanking. And how much value is there for gaining experience in VC after leaving the VC world?
Your comments will be greatly appreciated. If you'd like to contact me in private my email address is: eco4jaa@hotmail.com
Thanks |
| Message: |
Oooh ... your praises almost got to my head there ;>
But still the fact is I know very little ... but some responses to your questions ...
1. I think most VCs are finding quality deals harder to come by. Actually, it might be that the bar had been lowered during 99-00, resulting in lousy businesses being funded (think: the pet-food dot-coms).
Many VCs including the best known ones had reduced the fund committment of the LPs, bit the bullet and take the cut in management fee, in the hope that the LPs will return for the next fund.
2. Maybe I did't put it across clearly, what I meant was whether your partners at the VC firm come from a diverse background, engineers, bankers, operational people, consultants etc.
3. I feel that I didn't have enough experience to be a VC. I guess the best VCs have worked in the area they are investing in. Sounds like commonsense, but there are techVCs who don't know the difference between the network and transport layer, IPv4 anad IPv6 etc. Dumb money gets dumb returns, fact of VC life.
VC is generally seen as the top of the food chain. Turnover used to be really low cos' they weren't all the me-too VCs around.
But I think in recent months, there is a trend that some VCs have left to work for start-ups. It makes sense for someone at the associate level who has never worked in a start-up before. Some senior guys serve as interim CEO/COO/CFO of some of the portfolio companies.
And some (including a very famous case in Asia) have gone back to banking and consulting.
On the whole,I don't think VC experience can hurt your resume. The work is great, and you seem to have done enough to add value to the companies.
Good luck!
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