Thursday, January 28, 2010

First Round Capital Rolls Own Exchange Fund

Venture capital firm First Round Capital announced Thursday that the fund has created its own exchange fund, a way for entrepreneurs to diversity their investment in their own startup by owning a piece of other startups. Acccording to Josh Kopelman, one of First Round's Managing Directors, the new First Round Capital Entrepreneur's Exchange fund allows the firm's portfolio companies to contribute a small piece of the stock they own in their company, and share it with other portfolio companies. Kopelman said the goal of the new fund is to provide entrepreneurs with diversification in their investments. Kopelman said he believes the fund is the first created by a venture capital firm.