Industry Ventures invests in smaller venture capital funds less than $250 million in size. Our team invests using a combination of primary commitments and early secondaries which are less than 50% funded. We offer institutional investors and their consultants a systematic, multi-year, diversified venture capital program with the opportunity for a higher investment multiple and a slightly longer holding period.

Smaller funds have outperformed historically and still offer the strongest return potential as $100 million M&A exits dominate rather than $1 billion IPOs. We believe managers of smaller specialized funds with deep sector expertise will continue to outperform. Most investors are not equipped to purchase secondary interests that are less than 50% funded - especially for smaller venture funds - and Industry Ventures is uniquely positioned in this market due to our extensive holdings and manager relationships. Venture capital fundraising has declined significantly from 2000 levels setting the stage for a strong rebound over the next decade as the surviving firms will face less competition and drive better investment terms at lower valuations.

Portfolio diversification is central to risk mitigation and typically includes 15-20 partnerships balanced across: i) sector — information technology, healthcare, and communications; ii) stage — early and growth; and iii) vintage year — three year investment period. Industry Ventures has developed a proprietary manager evaluation methodology called the GP ScoreCard^©. We believe our relationship network and the rigor and discipline of our investment review process enable us to identify and invest in the strongest opportunities and generate superior returns.

We are differentiated in the following ways: