Why The SBIC Doesn’t Work For Venture Capital Anymore

Feld Thoughts

I woke up to an article in Daily Camera today titled Small Business Administration trying to bring SBIC funds to Colorado. I’m an investor in over 40 VC funds around the world (mostly in the US) and three of them are SBIC funds. Each of the SBIC funds were raised in the 2000 – 2002 time period. On paper, only one is in positive return territory as a fund, but the SBIC leverage is a substantial negative factor for the LP investors in that particular fund.

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A Venture Capital History Perspective From Jack Tankersley

Feld Thoughts

For example, my firm at the time, Continental Illinois Venture Corporation, the wholly owned SBIC of Chicago’s Continental Bank, had many successful investments. Highly regarded private SBIC, **Sutter Hill Affiliate, Norwegian Shipping Family, +B of A’s SBIC. In January, Jerry Neumann wrote a long and detailed analysis of his view of the VC industry in the 1980’s titled Heat Death: Venture Capital in the 1980’s.

The Secret History of Silicon Valley 12: The Rise of “Risk Capital.

Steve Blank

The Small Business Investment Company (SBIC) Act in 1958 guaranteed that for every dollar a bank or financial institution invested in a new company, the U.S. Was it using government money as a private SBIC firm?

Should your new VC fund use Revenue-Based Investing?

David Teten

Potentially could use SBIC financing. See Why The SBIC Doesn’t Work For Venture Capital Anymore vs. Small Business Investment Companies (SBIC) are an Attractive Alternative to Venture Capital. You’re working on launching a new VC fund; congratulations! I’ve been a traditional equity VC for 8 years, and I’m now researching Revenue-Based Investing and other new approaches to VC.

Why Governments Don’t Get Startups

Steve Blank

lesson of using SBIC funds.), Not understanding and agreeing what “Entrepreneur&# and “Startup” mean can sink an entire country’s entrepreneurial ecosystem.

What Makes a Successful Startup Community? Is it Possible to Build One Where You Live?

Both Sides of the Table

” And if aspiring investment teams are looking to get together the SBIC has come back with a new VC focused program to help non-Silicon Valley communities fund companies beyond their initial angel money. This article originally appeared on TechCrunch.

The Secret History of Silicon Valley 11: The Rise of “Risk Capital.

Steve Blank

More on the rise of SBIC’s, Limited Partnerships and the venture capital industry as we know it today in the next post.

The Secret History of Silicon Valley Part IX: Entrepreneurship in.

Steve Blank

They would be one the first venture firms to organize their firm as a partnership rather than an SBIC or public company.