Private Equity
Venture capitalists have put a lot of money over the past couple of years into companies developing treatments for eye disease. Now they’re seeing some ROI. This week, venture backers in LensX Lasers got what looks on paper to be a very nice exit that could turn into a much better one, when Alcon announced that it has entered into a definitive agreement to acquire the company. Alcon will pay US $361.5 million in cash for LenSX, a developer of a laser used in cataract treatment, plus maximum contingent payments of US $382.5 million if it hits agreed-upon milestones. Four-year-old LenSx, which developed what Alcon says developed is first femtosecond laser to receive U.S. Food and Drug Administration clearance for use as a part of cataract surgery, previously raised $32 million in venture funding. The Aliso Viejo, Calif.-based company’s investors include InterWest Partners, SV Life Sciences Advisers and Versant Ventures.
2 min read · 07 July 2010
Accel’s newest venture partner reflects on Real Networks, where his VC interests lie and what’s really important in life
3 min read · 01 July 2010
Brain-related investments have yet to produce a blockbuster exit, but VCs think they’re getting close to a breakthrough
10 min read · 01 July 2010
First half of year looks strong compared to same time last year, but more companies are slashing prices to get deals done
4 min read · 01 July 2010
3 min read · 30 June 2010
A sluggish economy usually means stagnant pay. But for CEOs of venture-funded startups, the dismal exit climate appears to be having the opposite effect. Today, VC-backed CEOs earn more than they did 10 years ago, according to a study by the National Venture Capital Association and executive search firm Spencer Stuart. In a survey of venture investors, researchers found that 47% of respondents said that they are paying CEOs comparably greater cash compensation and granting more equity. The survey followed up on a previous one carried out in 2001, with findings showing that a mix of static and changing attitudes among VCs toward management teams of startups they fund.
2 min read · 23 June 2010
Usually having a group of limited partners talk to VCs results in a discussion on the finer points of fee structure and carried interest. But Chris Douvos, co-head of private equity at The Investment Fund of Foundations, livened things up a bit at this week’s Venture Capital Investing Conference in San Francisco with a few points about how the private lives of general partners also factor into LP funding decisions. When entrusting capital to a venture fund, it’s imperative to have confidence in partners’ character, he says, not just their investment strategy. And that means filling the role of investigative reporter. "I need to know how likely they are to sleep with their assistant....I need to know why Person X isn’t speaking to person Y,” Douvos says. “I’m not a moralist or scold… I’m concerned about the distraction this causes to the partnership.”
2 min read · 10 June 2010
3 min read · 03 June 2010
The managing partner of Millennium Technology Ventures discusses his firm’s latest fund, how the economy has affected the secondary market and how he spends his time when he’s not working
2 min read · 01 June 2010
Seven more VC-backed companies went public in April, but none made it out as of mid-May
4 min read · 01 June 2010
