The Founders of Vergent have found that the key success of any firms starts with the people.
The idea is to invest in a company’s balance sheet and infrastructure until it reaches a sufficient size and credibility so that it can be sold to a corporation or so that the institutional public-equity markets can step in and provide liquidity. In essence, most investors buy a stake in an entrepreneur’s idea, nurtures it for a short period of time, and then exits with the help of an investment banker.
The Logic of the Deal.
There are many variants of the basic deal structure, but whatever the specifics, the logic of the deal is always the same: to give investors in the capital fund both ample downside protection and a favorable position for additional investment if the company proves to be a winner.