NVCA Recognizes Growth Equity As Critical Part Of Venture Capital Landscape

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Newly Formed Member Sub-Group Focuses on the Capital Needs of Later-Stage, Emerging Growth Companies

The National Venture Capital Association (NVCA) today announced it has formed the NVCA Growth Equity Group, a sub-group comprised of those venture capitalists whose investment strategies center on growing later-stage companies. As the investment time horizon for venture-backed companies has lengthened in the last decade, so too has the need for continued financing and guidance of these private companies prior to exiting the venture portfolio. Growth equity focuses on this final part of the venture investment life cycle, representing a critically important private alternative for the capital needs of emerging growth companies.

The Growth Equity Group joins a list of specialized sub-groups within the NVCA that address the unique needs of investment professionals in the venture capital industry. Other NVCA sub-groups include: the Corporate Venture Group, the Cleantech Advisory Council, the CFO Task Force, the Medical Industry Group, and the Strategic Communications Group.

“Venture capitalists’ mission is to help create and grow companies; growth equity focuses strongly on the ‘grow’ component of that mission. As more venture firms employ a multi-stage investment approach, we are seeing shared challenges relating to public policy, advocacy, and education in the later stages,” said Bruce R. Evans, chair of the NVCA Growth Equity Group and managing director of Summit Partners. “We must work together to ensure that later-stage companies are able to rise to the next level of growth in terms of hiring more employees, developing new technologies, and expanding the markets they serve. The NVCA Growth Equity Group will work to help specialized growth equity investors support these companies, which are growth engines for the economy. I look forward to leading this group in the coming year,” Evans added.

The following investors have been named to serve on the inaugural Growth Equity Group executive committee: NVCA Board members Bruce Evans, Summit Partners (chair); David Lincoln, Element Partners (chair-elect); Adam Grosser, Silver Lake Kraftwerk; and growth equity industry liaisons Brian Rich, Catalyst Investors; and John Drew, Technology Crossover Ventures.

“As with all disciplines within venture capital, a great deal of value is generated when like-minded investors come together and share information, tools, and best practices. This is particularly the case for growth equity which has become a more prevalent investment strategy for our members over the last several years,” said Mark Heesen, president, National Venture Capital Association. “At NVCA, we support all stages of venture capital investing, and the time is right for the NVCA to support growth equity investors in a more formal manner,” Heesen added.

The NVCA Growth Equity Group is open to NVCA member firms which invest equity capital in entrepreneurial emerging growth companies. For more information, please visit http://www.nvca.org or contact Janice Mawson jmawson@nvca.org.

About National Venture Capital Association
Venture capitalists are committed to funding America’s most innovative entrepreneurs, working closely with them to transform breakthrough ideas into emerging growth companies that drive U.S. job creation and economic growth. According to a 2011 Global Insight study, venture-backed companies accounted for 12 million jobs and $3.1 trillion in revenue in the United States in 2010. As the voice of the U.S. venture capital community, the National Venture Capital Association (NVCA) empowers its members and the entrepreneurs they fund by advocating for policies that encourage innovation and reward long-term investment. As the venture community’s preeminent trade association, NVCA serves as the definitive resource for venture capital data and unites nearly 400 members through a full range of professional services. For more information about the NVCA, please visit http://www.nvca.org.

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