Neuroventures Fund

This case concerns a group of experienced venture capitalists who are considering the establishment of a fund to invest in neuroscience-related products and services. They must evaluate the economic viability of the fund as well as the steps necessary to have a successful debut. Excerpt UVA-ENT-0009 NEUROVENTURES FUND As John Glynn read the investment memorandum for NeuroVentures Fund, he was aware that it was time for a number of critical decisions. The investment memorandum had been prepared by a group of MBA students from the University of Virginia. It provided the analytical support for an idea that had begun as a series of conversations between Dr. Neal Kassell of the University of Virginia Health Sciences Center and a number of experienced private equity investors, including Glynn himself. Kassell envisioned a new venture fund that invested in neuroscience-related products and services. Glynn helped Kassell develop his idea into a business plan and recruited a group of MBA students to take the plan to the next level. One of the major contributions the student group made was to start the search for a managing director. Ideally, the person selected would have experience in venture capital and biotechnical industries. Glynn realized that the choice of managing director was critical, because Kassell did not have the experience or the time to do the job himself. One of the MBA students, Dan O'Connell, had already accepted the position of associate. O'Connell and the new managing director would have to market the fund and be responsible for making investment decisions. Glynn had his own decisions to make. He needed to determine what his relationship to the fund would be. Glynn could choose to be part of the business advisory group that he and Kassell envisioned as assisting with the launch of the fund. In that capacity, he could also provide seed money to get the fund established. Glynn also needed to decide if he would invest in the fund as a limited partner or as a co-investor. As part of his decision-making process Glynn sought to answer the six questions that the MBA students posed in their memo: . . .