Real v Momentum Capital

Here’s the Scoop

http://www.readwriteweb.com/archives/real_vc_safest_asset_class.php


Here’s the Summary

Real Venture Capital (RVC) is taking risk and working hard to create something fundamentally new.  Many VC’s, some Angels, select Private Equity and Hedge Funds and even entrepreneurs who bootstrap their efforts can fall into this category.  On the other hand, Momentum Venture Capital (MVC) jumps on trends and amplifies them.  With some luck, smarts and good timing, firms with this approach can succeed as well.  However, in a downturn like this, MVC can get crushed.  RVC, investing when most people are scared, is contrarian.  MVC is the opposite, investing when trends are obvious.  While no asset class looks safe right now, the risk/reward of investing in a new business that you really understand, with people you trust, suddenly looks less out there on the risk curve.  Building a disruptive innovation from scratch is a bold initiative but it’s RVC that has the chance to succeed in any environment.

Here’s Our Take
Cava approaches Venture Investing with an RVC mentality.  As opposed to jumping on the bandwagon with “what’s hot now” investments, Cava pursues deals with the intention of building fundamentally strong businesses. By focusing on sectors where we have extensive operational experience, we are able to help entrepreneurs create sustainable businesses that thrive regardless of current trends.  While there might be a significant threat to firms practicing MVC, Cava is all about the RVC approach.

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About cavacapital

Cava Capital is a venture capital firm targeting go to market stage investments (series A and B) in next generation marketing solutions companies primarily in the Metro New York region. We are business builders, actively assisting our CEO's in the critical areas of Sales, Business Development and team building, bringing our exceptional and deep network to each and every portfolio company to help drive success. We prefer enterprise facing companies, but aren't scared off by the new consumer models.
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