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Tough Decisions to be Made Between Venture Capital and Internet-based Companies
Venture Capital Happy Hour, September 4, 6PM, Will Bring Together Venture Capitalists, Angel Investors, Seeders, Entrepreneurs, Technologists and Visionaries for an Evening of Networking and Cocktails in New York City
Rapid declines in some Internet names are putting some strain on VC relationships with their own investors who do not often pick up the phone and weigh in with their opinions. Now, the calls they do get tend to focus on that group of high-profile companies, investors and VCs say. On Tuesday, many again got walloped. Daily-deals site Groupon lost a quarter of its value after posting dismal results, bringing its total loss in market value since November to more than 70 percent, or $9 billion. Social network Facebook shed 6 percent and is now about half its value at debut.
Venture capital funds invest in stages over many years, so it’s difficult to estimate changes in the value of their holdings. Many likely made big profits on the dotcoms given the low prices they invested in initially, but the recent selloffs are compressing those returns.
R. Adam Smith is an experienced investor and advisor to small and middle market private companies, with approximately 20 years of experience in private equity and mergers & acquisitions at leading private investment and advisory institutions, including Caxton-Iseman Capital, Castle Harlan, Inc., Salomon Brothers and Lehman Brothers. Prior to forming Circle Peak, Mr. Smith served in principal capacities at two leading private equity firms based in New York City, Caxton-Iseman Capital LLC and Castle Harlan, Inc., each with over $2 billion in managed equity capital. At these firms, he worked directly with senior management teams and institutional limited partners, co-investors, and lenders in the acquisition and growth of $25 million to $1 billion companies in food, beverage, restaurant, distribution, industrial, and asset management sectors. Mr. Smith has been involved in control-stake private investments collectively representing approximately $1.5 billion in sales, $200 million in EBITDA, and $400 million in equity commitments.
Venture Capital Happy Hour, featured in The New York Times, is produced by Golden Networking, the premier networking community for business executives, entrepreneurs and investors. Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to info at goldennetworking dot net