David Hetz and Jon Osgood form a new venture capital fund in 2001 to invest in healthcare start-ups. Describes their fundraising activities at a time when venture capital investment has reached an all time high. Although their skills and experience background outside venture capital fall, they have identified a large investor and a number of smaller investors to secure their small fund. They believe that their strategy of the fund in a unique way the strategic needs of large corporate acquirers …. Read more »

David Hetz and Jon Osgood form a new venture capital fund in 2001 to invest in healthcare start-ups. Describes their fundraising activities at a time when venture capital investment has reached an all time high. Although their skills and experience background outside venture capital fall, they have identified a large investor and a number of smaller investors to secure their small fund. They believe that their strategy of the fund in a unique way the strategic needs of large corporate acquirers. At the same time their venture capital approach aligns the dependence on public markets for liquidity events – all but evaporated with the dot-com collapse in March 2000. Hetz and Osgood face challenging negotiations to close the fund. Raises the question of whether there is a need for a fund as at the date of the case. Discussion of specialized support against generalized venture capital funds.
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Richard G. Hamermesh,
Brian J. Delacey
Source: Harvard Business School
20 pages.
Publication Date: Dec 15, 2004. Prod #: 805075-PDF-ENG
Cutlass Capital L.P. HBR case solution

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