It took 13 years for the earliest venture investors to exit Arcot Systems Inc., a security software company that agreed to be acquired by CA Inc. yesterday for $200 million. The deal shows that the 10 to 12-year lifespan of most venture funds is only a guess as to how long it could take to get cash back to limited partners.
Onset Ventures, a seed investor in Arcot Systems, had to get permission from its limited partners to extend the life of its 1994 and 1997 vintage funds that invested in the company. Those extensions were never a problem for Onset, since it doesn’t charge any management fees after the 12th year of a fund, said Terry Opdendyk, one of the firm’s founders. (See our recent post about fund-extension issues.)
To read the full, original article click on this link: Good Things Come To Venture Firms Who Wait - Even 13 Years - Venture Capital Dispatch - WSJ
Author: Scott Denne
