When venture firms boast of exits, they’re typically talking about acquisitions or initial public offerings. Edison Venture Fund
took a different approach recently when it announced an 11-times return
on its initial investment in CambridgeSoft Corp., achieved by selling its shares back to the company.
At a time when traditional exits are harder to achieve, the Lawrenceville, N.J., firm, which has been around since 1986, says it is working harder to generate liquidity for its limited partners. “Exits are considerably more difficult now than they were earlier in my career,” said John Martinson, Edison Venture’s founder and a managing partner. “We’re much more proactive.”
The firm, whose name is a reference to entrepreneur and inventor Thomas Alva Edison, is seeing longer times to exit even though it is a later-stage growth investor and does not back start-ups. It invests in technology companies that are cash-flow positive or close to it. Most have been in business for three to six years and have no prior institutional financing.
To read the full, original article click on this link: Edison Venture Fund Leaves No Stone Unturned In Exit Quest - Venture Capital Dispatch - WSJ
Author: Russell Garland
