The Advantages of Venture Capital Investing

In an interview, Edward Dugger, III, chief executive of UNC Ventures Inc. (UNCV), discussed the changing nature of the venture capital business. In the 1990s, business opportunities will be more fluid, and venture capital firms will be looking to invest in firms that create products based on the dem...

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Bibliographic Details
Published in:Black enterprise 1990-02, Vol.20 (7), p.186
Main Author: Rowe, Samuel
Format: Magazinearticle
Language:English
Subjects:
Case studies
Entrepreneurs
Investment
Minority & ethnic groups
Venture capital
Venture capital companies
Online Access:Get full text
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Summary:In an interview, Edward Dugger, III, chief executive of UNC Ventures Inc. (UNCV), discussed the changing nature of the venture capital business. In the 1990s, business opportunities will be more fluid, and venture capital firms will be looking to invest in firms that create products based on the demographic shifts tied to age and ethnicity. UNCV (Boston, Massachusetts) invests in US-based companies that are substantially owned by ethnic minorities, such as blacks and Hispanics. Though UNCV typically holds less than 50%, the percentage of ownership depends on how much capital is invested, the potential return for UNCV, the level of risk, and the firm's earning prospects. UNCV's thrust is to support entrepreneurs in acquisitions to augment their companies or to enter a new market. The investment also depends on the needs of the business and its ability to obtain additional funds. The typical investment is between $100,000 and $2 million, and the investment period is typically 4-7 years, depending on liquidity.
ISSN:0006-4165