Case | HBS Case Collection | February 2004 (Revised April 2004)

Orchid Partners: A Venture Capital Start-up

by Myra M. Hart and Kristin Lieb

Abstract

The development of a new venture partnership and the challenges associated with raising its first fund are chronicled. The decision to focus on early-stage investments, the determination of the appropriate size of the fund, the fund-raising process, and the steps in closing are all examined. Also presents information on the relationships among the five partners, the division of responsibilities, and the compensation package. Provides personal background on each of the partners and explores their motivation for choosing this career change at this particular moment in their lives.

Keywords: Business Startups; Venture Capital; Entrepreneurship; Problems and Challenges; Partners and Partnerships; Investment; Motivation and Incentives; Financing and Loans; Personal Development and Career;

Citation:

Hart, Myra M., and Kristin Lieb. "Orchid Partners: A Venture Capital Start-up." Harvard Business School Case 804-138, February 2004. (Revised April 2004.)