Rufus Rivers and Career Choices in Private Equity and Venture Capital Finance

2017 ◽  
pp. 1-21
Author(s):  
Steven Rogers ◽  
Pat Vaccaro ◽  
Scott T. Whitaker
Keyword(s):  
New York ◽  
Venture Capital ◽  
Private Equity ◽  
Career Choices ◽  
The Other ◽  
Venture Capitalists ◽  
Venture Capital Firm ◽  
Executive Search ◽  
Venture Capital Firms

Rufus Rivers, managing director and co-head of mezzanine investing at The Carlyle Group, is reviewing two employment offers he recently received. One came from RLJ Equity Partners, a private equity firm headquartered in the metropolitan Washington, D.C., area. The other came via Glocap Search, a New York-based executive search firm specializing in placing top private equity executives in premier venture capital roles. The Glocap recruiter had told Rivers that he had been selected as the leading candidate for a position with an established Boston-area venture capital firm that had several exciting investment prospects. In the next few days, Rivers needs to consider his personal and professional interests and make a decision: Should he go to Washington, go to Boston, or stay put—and on what terms?Learn about the different kinds of opportunities available to venture capitalists; Assess whether becoming venture capitalists themselves is worthwhile; Learn how venture capital firms offer positions and the terms under which joining a venture capital firm might make sense for them in their careers.

scholarly journals Private equity and venture capital in South Africa: A comparison of project financing decisions

2013 ◽  
Vol 16 (3) ◽  
pp. 258-278 ◽  
Author(s):  
David Portmann ◽  
Chipo Mlambo
Keyword(s):  
South Africa ◽  
Venture Capital ◽  
Private Equity ◽  
Venture Capitalists ◽  
Project Financing ◽  
Financing Decisions ◽  
Start Up ◽  
Risk Appetite ◽  
Investment Opportunities ◽  
Venture Capital Firms

This paper investigates the manner in which private equity and venture capital firms in South Africa assess investment opportunities. The analysis was facilitated using a survey containing both Likert-scale and open-ended questions. The key findings show that both private equity and venture capital firms rate the entrepreneur or management team higher than any other criterion or consideration. Private equity firms, however, emphasise financial criteria more than venture capitalists do. There is also an observable shift in the investment activities away from start-up funding, towards later-stage deals. Risk appetite has also declined post the financial crisis.

scholarly journals Assets need audiences: How venture capitalists boost valuations by recruiting investors to asset circles

2021 ◽  
Vol 7 (1) ◽  
pp. 1-19
Author(s):  
Dave Elder-Vass
Keyword(s):  
Venture Capital ◽  
Venture Capitalists ◽  
Financial Assets ◽  
Venture Capital Firm ◽  
Private Companies ◽  
Venture Capital Firms

Narratives and conventions have received considerable attention in recent discussions of the valuation of financial assets. Narratives and conventions, however, can only be effective to the extent that they attract and persuade audiences, and this article makes the case for paying more attention to those audiences. In particular, the article argues that financial assets can only be established as assets if there is a group of potential investors that has been persuaded to accept them as such: to take them seriously as potential investments. The article coins the term asset circles to refer to such groups and supports the argument with a discussion of venture capital and its role in the production of unicorns: private companies with extraordinary valuations. Venture capital firms may be thought of as value entrepreneurs, and much of the venture capital process is oriented towards constructing both value narratives for the companies they invest in and asset circles prepared to accept those value narratives. Their aim in these processes is a profitable exit, in which the venture capital firm converts its investment back into cash at a considerable profit through either an acquisition or a flotation.

Are venture capitalists firefighters? A study of the influence and impact of venture capital firms

Technovation ◽  
1997 ◽  
Vol 17 (9) ◽  
pp. 503-532 ◽  
Author(s):  
Öystein Fredriksen ◽  
Christer Olofsson ◽  
Clas Wahlbin
Keyword(s):  
Venture Capital ◽  
Venture Capitalists ◽  
Venture Capital Firms

scholarly journals Empirical Analysis of Hungarian Firms According to Venture Capital Investment Criteria

2016 ◽  
Vol 9 (1) ◽  
pp. 16-32
Author(s):  
Judit Edit Futó
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Selection Process ◽  
Statistical Tests ◽  
Venture Capitalists ◽  
Venture Capital Investment ◽  
Capital Financing ◽  
Venture Capital Firms ◽  
Investment Process ◽  
Index Investment

Abstract Over the past decade the venture capital industry has become more and more prominent, not just on a global level, but in Hungary, too. Thanks to the JEREMIE Program a large number of new venture capital firms are located in our country, and therefore an investment wave has started. The aim of the paper is to sort micro- and small sized enterprises in terms of how appropriate is a venture capital financing. The main topic of the paper relates to the selection of firms for venture capital investment; therefore, in the first part of the study we briefly summarize a general venture capital investment process, highlighting both the selection process and the criteria used for selection. Then we propose 3 indexes (trustworthiness index, openness index, investment index), which we have created to help venture capitalists to decide whether the targeted enterprises are appropriate for them, or not. In the main part of the paper we provide a classification of micro- and small sized Hungarian firms based on my own survey, and we analyze what kind of relationship exists between the proposed indexes and the type of the classified firms. The result of the classification is that we identify four main firm types and, based on statistical tests, it can be said that there is no significant relationship between the trustworthiness index and the clusters, but that there are between the two other indexes and the clusters.

Rufus Rivers and Career Choices in Private Equity and Venture Capital Finance

2010 ◽  
Author(s):  
Steven Rogers ◽  
Pat Vaccaro ◽  
Scott T. Whitaker
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Career Choices

OurCrowd: Growing a Crowdfunding Platform in a VC World

2015 ◽  
pp. 1-11
Author(s):  
Sarit Markovich ◽  
Evan Meagher
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Value Added ◽  
High Growth ◽  
International Markets ◽  
Value Proposition ◽  
Different Types ◽  
Incentive Problems ◽  
Venture Capital Firms ◽  
Private Investors

This case features the challenges of a startup in the crowdfunding space in 2015 as its leadership assesses potential sources of growth for the company s future. Founded in Israel in 2012 by a renowned venture capitalist, OurCrowd was a venture capital crowdfunding platform that strove to connect high-growth startups raising capital with accredited private investors from around the world. Its value proposition was to democratize an inefficient market for private equity that had historically been dominated by a small number of highly connected venture capital firms (VCs). The case asks students to put themselves in the shoes of OurCrowd s head of investor community as he prepares for a meeting with the company s board of directors to discuss potential strategies for growth: Should the company partner with the incumbent VCs it initially sought to disrupt, emphasize marketing its Portfolio Reserve fund, strive to provide its investors and investees with higher value-added services, target a broader swath of investors by aggressively marketing the platform in international markets, or attempt to go up-market and pursue increasingly larger deals with later-stage companies? Through assessing these options and discussing this case, students will learn about incentive problems in two-sided markets as well as how different types of crowdfunding platforms create value for users.

scholarly journals Comparative Social Capital: Networks of Entrepreneurs and Venture Capitalists in China and Russia

2007 ◽  
Vol 3 (3) ◽  
pp. 397-419 ◽  
Author(s):  
Bat Batjargal
Keyword(s):  
Social Capital ◽  
Social Networks ◽  
Empirical Study ◽  
Venture Capital ◽  
Institutional Theory ◽  
Survey Data ◽  
Private Equity ◽  
Interpersonal Trust ◽  
Venture Capitalists ◽  
Professional Networks

I compare networks of entrepreneurs and venture capitalists in China and Russia by examining professional social networks of software entrepreneurs and private equity investors from the perspectives of institutional theory and culture paradigm. In the empirical study, I draw on survey data from Beijing and Moscow based on interviews of 159 software entrepreneurs and 124 venture capital decisions. I found that professional networks of the Chinese software entrepreneurs are smaller, denser and more homogeneous in educational specializations, compared with the networks of Russian entrepreneurs. Furthermore, I found that both ties and interpersonal trust in the referral tie are stronger in China than in Russia.

scholarly journals What Do University Endowment Managers Worry About? An Analysis of Alternative Asset Investments and Background Income

2016 ◽  
Vol 11 (4) ◽  
pp. 404-425 ◽  
Author(s):  
Harvey S. Rosen ◽  
Alexander J. W. Sappington
Keyword(s):  
Venture Capital ◽  
Hedge Funds ◽  
Private Equity ◽  
The Other ◽  
Government Grants ◽  
The University

This paper examines whether university endowment managers think only in terms of the assets they manage or also take into account background income, that is, the other flows of income to the university. Specifically, we test whether the level and variability of a university's background income (e.g., from tuition and government grants) affect its endowment's allocations to so-called alternative assets, such as hedge funds, private equity, and venture capital. We find that both the probability of investing in alternative assets and the proportion of the portfolio invested in such assets increase with expected background income and decrease with its variability.

When do organisations learn from successful experiences? The case of venture capital firms

2019 ◽  
Vol 37 (5) ◽  
pp. 450-472 ◽  
Author(s):  
Violetta Bacon-Gerasymenko
Keyword(s):  
Adverse Effect ◽  
Venture Capital ◽  
Organisational Learning ◽  
Venture Capitalists ◽  
Recent Success ◽  
Future Performance ◽  
Venture Capital Firms ◽  
Practical Implications

This article examines the extent to which venture capital firms (VCFs) learn from successful experience and when such experience influences the likelihood of future successful exits. To test our theory, we drew upon a novel dataset of young French VCFs and their investments. Results indicate that VCFs learn from success, but only up to a certain level of after which the benefits decline. We also found an adverse effect on future performance from the first VCF experience, if it was successful. Refuting our prediction, VCFs appear to learn better from significant, rather than small, successes. Finally, our results reveal that VCFs learn most from more recent success but that extrapolating lessons from more dated experience may harm future performance. Our study contributes to the venture capital and organisational learning literature with practical implications for venture capitalists and entrepreneurs.

scholarly journals Exploring the relationships between venture capital funds and venture-backed firms: A strategy process approach

2011 ◽  
Vol 8 (2) ◽  
pp. 120-130 ◽  
Author(s):  
Minoja Mario ◽  
Antonio Corvino ◽  
Giulia Romano ◽  
Marco Tutino
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Value Added ◽  
Strategy Implementation ◽  
Process Approach ◽  
Venture Capitalists ◽  
Strategy Process ◽  
Resources And Capabilities ◽  
And Performance ◽  
Shed Light

A great deal of studies have been carried out so far to explore the impacts of private equity or venture capital (VC) investors on their portfolio companies. Most of them focus on corporate governance, management composition and skills, competences, and performance. A lesser amount of studies have been conducted on how VC investments interact with backed firms’ strategy process. In the present paper we aim to shed light on this topic by investigating in which stage of backed firms’ strategy process venture capitalists (VCs) invest in them and explaining this choice in the light of the value they can deliver and simultaneously extract from them in the different stages of that process. After a cross comparison of eight cases of Italian firms in which venture capital funds have acquired minority stakes, we found that these investors do not challenge the intended strategy backed firms had undertaken, but help them implement this strategy by enriching their endowments of non business-related resources and capabilities. Furthermore, VCs seem to invest when the gap between the intended strategy and implemented strategy of backed firms is at intermediate levels. While at early stages of backed firms’ strategy implementation VCs tend to evaluate the risk of their investment as too high, at later stages they would not deliver a significant “value added” to backed firms themselves.

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