New Easton Capital Fund Structure Fits The Times

27 Feb 2013

• By Tom Salemi

Easton capital has secured roughly $20 million for a “special situations” fund of unusual design. The new fund is a five-year commitment between general partners and limited partners with the potential for three one-year extensions. Limited partners estimate the average life of a typical venture fund to be roughly 15 years. Easton Capital’s fund will be concluded in half the time.

Venture capitalists might have a flair for recognizing innovation but they haven’t demonstrated a knack for applying it to themselves. The venture model – many complain – needs repair. Yet, VCs, in trying to raise new funds, only tinker with investment strategies without straying far from the traditional 10-year partnership model upon which the industry is built. Easton Capital Investment Group, however, went farther afield than most in creating the prototype for a new type of fund.

The venture firm secured roughly $20 million for a “special situations” fund of unusual design. The new partnership eschews the...