Transtech Venture Partners

By Peter C. Bell

Transtech Venture Partners - Peter C. Bell
  • Release Date: 2002-11-29
  • Genre: Economics

Description

A venture capital firm needs to allocate $50 million in capital. Due to the firm's below-average performance and the currently sluggish financial market, a strategic allocation of this capital is critical to the firm's survival. The chief executive officer turns to his senior management team for advice. One team leader identifies firms for follow-on investments, a second team leader recommends new investments and the third team leader proposes a buy-out opportunity. The chief executive officer must decide whether the restrictions on the number of new investments is too limiting, whether due diligence is required on additional new companies and what the impact will be on the firm's return if a balanced portfolio is maintained. (Data and Solver model are available, products 7B02E012 and 5B02E12.)