Money Buzz 1/03
The VC arena for family businesses, Nasdaq's new trading platform and more
Welcome to the Family
Family-owned businesses are said to be the backbone of the Americaneconomy. So why is it so hard for them to find venture capital?"There's a bias among the venture community againstfamily-owned businesses," explains Mark Greenough, presidentof San Mateo, California-based Greenough Consulting Group."VCs tend to want control over who is on the management team,and that's difficult when there are relationshipties."
Exit strategy conflict is another concern, adds Stephen Sammut,a venture partner at San Francisco-based private merchant bankBurrill & Co. "It's assumed that even if the firm wereto go public, it would remain a tightly controlled corporation withthe family owning the majority of shares."
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