February 2007 Issue

Based near America’s capitol in Arlington, Virginia, the National Venture Capital Association has for 33 years been the official advocate for the US VC industry in front of policy makers and the public. With the recent formation of the Private Equity Council (see p.8), a new lobbying group backed by the largest private equity firms, we invited the NVCA president Mark Heesen to speak with us about the art and science of influencing public policy, the impact of venture capital on the economy, and why buyout groups have been barred from joining the NVCA. 

Holding debt and equity investments in a financially distressed company may survive ‘recharacterization’ claims in a US bankrupcy based on the outcome of an important case. 

For a start-up venture fund, effective budgeting through the early months and years is vital. 

Structuring venture capital funds in China requires the same diligence as in the West, but with a keen eye to a legal system that can sometimes lag the dynamism of its economy. 

Innovators that earn the attention of venture capitalists often discount the complexity and skill involved in building a company around their discovery. Educating these accomplished individuals in business realities is no small feat. 

What makes a good venture capitalist? Certainly it’s someone who has the wherewithal to dive deep into the technical and market details of a given industry. But that minus the ability to connect with entrepreneurs and innovators won’t even get you a tall latte in the VC business. The combination of technical and social know-how is a skill set that needs to be passed from senior to junior professional. 

The rise of venture capital firms from within university technology transfer offices didn’t happen overnight, and the recent crop of academic-focused VCs would do well to learn from the first generation. 

A failed merger postpones Orrick’s deal advisory aspirations. 

As a division within a publicly listed investment banking boutique, Evercore Partners’ private equity business doesn’t resemble the traditional firm. But the firm’s partners believe that’s only to their advantage. 

When and how should a sponsor firm address a PR crisis in the portfolio? Experts suggest acting early with a light touch and a low profile. 

The global private equity firm has named Lori Sabet managing director. 

A group of private equity firms benefit from relaxed foreign-ownership rules. 

A video game champion will now argue the case for private equity before US policy makers. 

A major private equity firm shortens its name. 

The SEC’s proposed upgrade to accredited investor rules may hit small private equity and ‘knowledgeable employees.’