[Posted on October 12, 2007 - 11:33 AM]
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DiggEvery industry has its old guard and its up-and-comers; its nine-to-fivers coasting on past accomplishments and its all-nighters looking to make a name for themselves.
Panelists at International Business Forum's Early Stage Venture Investing Conference in San Francisco Thursday, Oct. 11, stressed that the venture capital industry is no exception. Many limited partners said they were increasingly focused on investing in funds from younger, lesser known firms.
Robert Hofeditz, a partner at the San Francisco investment firm Probitas Partners coined the term "elephant hunting" to describe investors and LPs that focused exclusively on funds at blue-chip firms like Sequoia Capital or Kleiner Perkins Caufield & Byers.
"Certain funds are untouchable," he said, citing firms like Benchmark Capital, which was formed by partners at other prominent firms.
Noting that "most divorces happen after 14 years of marriage," Hofeditz said, referring to older, established firms,
"that's what's going to happen in venture capital."
"The people who create wealth," he added, "are not the guys who are making $100 million a year and not going into the office."
Georganne Perkins, managing director of Fisher Lynch Capital, agreed, saying that "finding the next Kleiner Perkins is the most exciting thing I do." She predicted that some of the "older firms will break up, and we are watching that." --Andrea Orr
