Subject category:
Entrepreneurship
Published by:
Stanford Business School
Version: 13 May 2022
Length: 22 pages
Data source: Field research
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Abstract
In 2018, renowned venture capital firm New Enterprise Associates (NEA) faced challenges related to the rapid multiplication of its funds and growth of its portfolio. Ravi Viswanathan, then a General Partner and the Chief Operating Officer of the firm, identified an opportunity to start a new venture firm to acquire a subset of NEA's portfolio companies through a secondary stock transaction. The strategy seemed beneficial for NEA, its Limited Partners (LPs), and the portfolio companies. It was the starting point of NewView Capital, a firm focused on portfolio acquisitions, direct investments in new companies, and strong operational support to its companies. The case covers NEA's situation, the challenges and opportunities presented by secondary stock transactions, the formation of NewView Capital, its evolving strategy, and the perspective of one of the companies whose NEA ownership stake was acquired by NewView Capital in the secondary transaction.
Time period
The events covered by this case took place in 2022.Geographical setting
Region:
Americas
Country:
United States
About
Abstract
In 2018, renowned venture capital firm New Enterprise Associates (NEA) faced challenges related to the rapid multiplication of its funds and growth of its portfolio. Ravi Viswanathan, then a General Partner and the Chief Operating Officer of the firm, identified an opportunity to start a new venture firm to acquire a subset of NEA's portfolio companies through a secondary stock transaction. The strategy seemed beneficial for NEA, its Limited Partners (LPs), and the portfolio companies. It was the starting point of NewView Capital, a firm focused on portfolio acquisitions, direct investments in new companies, and strong operational support to its companies. The case covers NEA's situation, the challenges and opportunities presented by secondary stock transactions, the formation of NewView Capital, its evolving strategy, and the perspective of one of the companies whose NEA ownership stake was acquired by NewView Capital in the secondary transaction.
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Time period
The events covered by this case took place in 2022.Geographical setting
Region:
Americas
Country:
United States