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Secondaries Report

Jul 1, 2003 | Venture Capital Journal | by Carolina Braunschweig.

While the jump in corporate sales is primarily due to macroeconomic factors, each sale is unique. Details on some of the more publicized secondary transactions by corporations are discussed. When Electronic Data Systems launched a $1.5 billion investment program in December 1999, it was to be one of the largest corporate venture programs of all time. Despite EDS investing $230 million in 16 startups, 4 years later that plan had failed. When it filed for Chapter 11 protection last July, MCI, the re-named remaining piece of telecommunications carrier WorldCom, said it would hold onto its $250 million venture capital portfolio, but make no new investments. As the Justice Department discovered more and more evidence of corruption at WorldCom, the company hastily put its entire investment portfolio up for sale.