SANTA CLARA, Calif., Sept. 14 /PRNewswire/ -- DEMO 2010 -- InLab Ventures, an early stage venture capital firm, released the details of its new ideology and business model called Venture Capital 3.0 today at DEMO 2010. The new Venture Capital 3.0 model radically changes existing funding practices such as the total elimination of annual management fees; a proven lab-based, scientific process and methodology for selecting and building winning companies; greater involvement with portfolio companies; and leveraging new financial models for predicting investment success. InLab Ventures is currently deploying capital from its $6 million Founders' Fund using the new model.
InLab Ventures has invested several million dollars to build and test the infrastructure and framework of its business model, completing its assessment over the last two years. A full white paper on Venture Capital 3.0 is now available at www.inlabventures.com/venture-capital-3-0 and describes in detail a market analysis under flawed venture funding approaches that has led to dismal returns, extended exit timeframes and a struggling IPO market. The white paper also describes the structure and features of the new Venture Capital 3.0 model, and immediate opportunities for both entrepreneurs and investors.
The Venture Capital 3.0 lab-based process recently received major support when the law firm of Wilson Sonsini Goodrich & Rosati and Hitachi Consulting performed a blind validation test using quantitative and scientific-based investment analysis tools. Results showed this practice had 100 percent accuracy in predicting successful companies, as well as high levels of accuracy on the particular degree of success. To date, approximately 30 companies have already been through the Venture Capital 3.0 due diligence processes. Major portions of the process framework and methodology are currently licensed and used by Capgemini in their national Accelerated Solutions Environment locations.
"Venture Capital 3.0 was founded on the recognition that the venture capital asset class is in dire need of fundamental change, as until now, no one has been willing or prepared to put out a solution that addresses critical venture funding issues," said Greg Doyle, partner, InLab Ventures. "Our new business model has been market tested and is rapidly growing in size. We're eager to start the new era of venture funding and management, and openly welcome startups and investors to join us."
InLab Ventures has a current portfolio of nine companies, two of which are within 12 months of large liquidity events and two others are profitable early-stage businesses with exit horizons in 2-3 years. InLab Ventures will be available at DEMO to discuss Venture Capital 3.0. Also visit the Venture Capital 3.0 blog at www.venturecapital3-0.com.
About InLab Ventures
InLab Ventures is an early stage venture capital firm with a fundamentally different business model from the traditional VC approach. InLab Ventures' model has 4 major differentiators: no management fees, an enhanced due diligence process that uses a proven, lab-based, scientific process and methodology to select and build winning companies, a fully integrated marketing platform and deal flow engine which creates a significant increase in deal flow, a unique strategic partner/M&A alliance program that engages industry M&A leaders earlier and more often into the development cycle. InLab Ventures focuses on technology-enabled companies in the following industry segments: Hi-Tech (software, hardware, content & applications) and Green-Tech (energy alternatives, & efficiencies). InLab Ventures also participates in the Biotech and Life Science industries through a fund-of-funds relationship with Leading Ventures. More information is available on InLab Ventures' web site, www.inlabventures.com.
Ruder Finn for InLab Ventures
SOURCE InLab Ventures