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May 16, 2003
Why Closed-End VC Funds?
Why no open-ended VC funds?: Tim Oren explains why most venture capital funds are closed-end funds, which have to pay back to their investors at a certain, pre-determined time (usually 10-15 years after the fund's start).
He also mentions meVC as an example of a failed opene-ended fund. However, one company notably different I can think of is private equity and venture capital firm 3i Group, which is a publicly traded firm that both has their own (respectively their shareholders') capital to invest (i.e. as an open-ended funds) as well as additional closed-end funds to be used for further investments (see here for some information). And it works.
Posted by Stefan Smalla on May 16, 2003 at 20:05 | Permalink