RealTime IT News

Firm to Offer $100 Million Fund to Online Investors

Venture capital firm Technology Funding started selling shares of its latest venture capital fund over the Internet at 12:01 a.m. Tuesday.

Chairman and founder of Technology Funding, Charles R. Kokesh, reports the company will sell its $100 million Venture Capital Fund VI (VC-6) exclusively to investors over the Internet, targeting the small investor.

"This is a landmark event for the small investor," said Kokesh. "The Internet becomes the great equalizer, bringing the same class of investment to individual investors that until now has been the exclusive province of large institutions, pension funds and very wealthy families."

The VC-6 venture capital fund will target its investments in companies that show a high growth potential in information technologies, including the Internet, medical technologies, and industrial automation technologies.

The VC-6 fund will use e-mail and the Web for distributing information to its investors, which will help to reduce costs. "Communicating with investors has always been a huge cost of offering venture capital to a mass audience. The Internet has just slashed that expense to a fraction of what it has cost us with previous funds," said Kokesh.

Kokesh states the company received approval from both the Securities and Exchange Commission (SEC) and National Association of Securities Dealers (NASD) to conduct electronic sales of the shares.