IBJOpinion

Future Fund's start is not so slow

January 9, 2010
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
IBJ Letters To The Editor

In response to your Dec. 21 article labeling the Indiana Future Fund as “off to slow start,” I believe some additional historical perspective is warranted. Our firm, Spring Mill Venture Partners, a recipient of funding from the IFF, has invested in 10 seed and early-stage companies. Of those, 70 percent are Indiana-based companies.

The premise of the IFF, launched in 2004, was to:

• foster the creation and growth of life sciences companies in Indiana,

• encourage the growth of a vibrant Indiana-based venture capital community, and

• facilitate public and private partnerships within the state.

Venture capital as an engine for economic growth has no equal. Although it remains a relatively small asset class, in 2008 venture capital-backed companies employed more than 12 million people and generated nearly $3 trillion in revenue. Respectfully, these figures accounted for 11 percent of private-sector employment and represented the equivalent of 21 percent of U.S. gross domestic product during that same year (NVCA Venture Impact Study, 2009).

The median age of a venture-backed company at the time of its initial public offering has increased from 4.5 years in 1998 to 9.6 years as of year-end 2008. The median company age at the time of a mergers and acquisitions exit has increased to 6.5 years over the same time frame.

Based on a typical five-year investment cycle, the median age of our portfolio companies is less than 4 years old, shorter than the typical exit horizon for an early-stage investment. In fact, it would be a surprise if seed and early-stage investments were creating significant exits at this point.

In summary, I believe your portrayal deserves further explanation in order to provide a complete picture of the scenario. I hope I have provided more of that for your readers.

____________

David Mann

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I had read earlier this spring that Noodles & Co was going to open in the Fishers Marketplace (which is SR 37 and 131st St, not 141st St, just FYI). Any word on that? Also, do you happen to know what is being built in Carmel at Pennsylvania and Old Meridian? May just be an office building but I'm not sure.

  2. I'm sorry, but you are flat out wrong. There are few tracks in the world with the history of IMS and probably NO OTHER as widely known and recognized. I don't care what you think about the stat of Indy Car racing, these are pretty hard things to dispute.

  3. Also wondering if there is an update on the Brockway Pub-Danny Boy restaurant/taproom that was planned for the village as well?

  4. Why does the majority get to trample on the rights of the minority? You do realize that banning gay marriage does not rid the world of gay people, right? They are still going to be around and they are still going to continue to exist. The best way to get it all out of the spotlight? LEGALIZE IT! If gay marriage is legal, they will get to stop trying to push for it and you will get to stop seeing it all over the news. Why do Christians get to decide what is moral?? Why do you get to push your religion on others? How would legalizing gay marriage expose their lifestyle to your children? By the way, their lifestyle is going to continue whether gay marriage is legalized or not. It's been legal in Canada for quite a while now and they seem to be doing just fine. What about actual rules handed down by God? What about not working on Sundays? What about obeying your parents? What about adultery? These are in the 10 Commandments, the most important of God's rules. Yet they are all perfectly legal. What about divorce? Only God is allowed to dissolve a marriage so why don't you work hard to get divorce banned? Why do you get to pick and choose the parts of the Bible you care about?

  5. Look at the bright side. With the new Lowe's call center, that means 1000 jobs at $10 bucks an hour. IMS has to be drooling over all that disposable income. If those employees can save all their extra money after bills, in five years they can go to the race LIVE. Can you say attendance boost?

ADVERTISEMENT