David and John Osgood Arrow form a new venture capital fund in 2001 to invest in health startups. Described their efforts to raise funds at a time when venture capital investment reached a record. Despite their background, skills and experience beyond the venture capital, they have identified a number of large investors and small investors to support their small fund. They believe that their strategy of the fund clearly on the strategic needs of large corporate customers. At the same time, their approach solves the dependence of venture capital in the public markets liquidity events - which are all but evaporated with the collapse of the dot-com bubble in March 2000. Loaf and Osgood faced difficult negotiations to close the fund. Raises the question of whether there is a need to fund as at the time of the case. Encourages discussion of specialized compared with generalized venture capital funds. "Hide
by Richard G. Hamermesh, Brian J. Delacey Source: Harvard Business School 20 pages. Publication Date: December 15, 2004. Prod. #: 805075-PDF-ENG
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