BOSTON, MA November 13,2000 -- In a report released today, Aberdeen Group identified the rise of a new Third-Generation Venture (3GV) community, which includes technology operating companies, incubators, accelerators and venture catalysts. The 3GV community provides capital and services to early-stage companies that are operating under the radar of traditional venture capitalists and over the heads of individual or affiliated angel investors.
Investors and entrepreneurs welcome the return of fundamentals to the company formation endeavor, says Ed Black, senior vice president of Private Equity Services and co-author of the report. A more serious 3GV market encourages the shakeout and exits of the investment clubs and three guys with six business cards. Customers, profits and sound businesses and technologies will prevail over buzz, cash burn and quick-pop liquidity events.
Third-Generation Venture: A New Value Proposition for Entrepreneurs and Investors, is the newest edition of Aberdeens ongoing investment report series and in it they evaluate major trends and business models in the 3GV marketplace. Drawing from Aberdeens extensive market surveying, the report:
- Profiles 39 early movers, their investments, philosophies, portfolios, key executives, services, business models and deal structures;
- maps incubators, accelerators and technology operating companies against other investment models;
- supplies information for startups seeking the right incubator; and
- presents insights for developing partnerships between corporations, service providers, venture capital firms and incubators.
3GV Companies profiled are Acacia Research Corporation; Anila Corporation; Brightspark; Cambridge Incubator; campsix; Catalyst Capital; Cenetec, LLC; CMGI; DigitalVentures; Divine interVentures, Inc. (DVIN); Doublespace; eCompanies; econception; eHatchery; FrontLine Capital Group Inc.; Gazellelab; ideaEDGE Ventures, LLC; Ideas Hub; idealab!; i-group HotBank NE LLC; Innovation Factory; Internet Capital Group (ICGE); Internet Incubator plc; Internet Venture Works, Inc; iStart Ventures; katalyst; Mediant Technology Partners, LLC; NetCatalyst; 100x; Reach Internet Incubator, LLC; Rebar Foundry; Redleaf Group, Inc.; Safeguard Scientifics, Inc. (SFE); Startups.com; Stonepath Group (STG); Venture Frogs, LLC; VenturePlex; VentureSurf.com, Inc.; and Wingspring.