Columbia Capital

Venture Capital Columbia Capital Case Columbia Capital Corporation should take different strategic directions in regards to the personal wealth investments, investment banking business, and venture capital funds. The personal wealth investments should continue for the next 3 years with the previous methodology. At the end of thisthree years the firm status as well as the wealth of the younger partners will be evaluated. The three younger partners will then assess their ability to continue the current business model. If it is unfeasible or undesirable, then the business model will change to that of a traditional venture capital firm with outside funding. Venture capital funds and a direct investment group should be mutually exclusive. Lastly, the investment banking business should be spun off Columbia Capital corporation with a new workforce and management as soon as possible. (See the IRR & risk levels for these scenarios attached) Columbia Capital Corporation is an extremely unique firm. The firm appears to be a group of angel investors, however they have accumulated enough personal capital to invest amounts and in stages that a conventional venture capital firm would. This business model is fairly unusual, yet highly successful as displayed by the annual return of 194%. Due to the growth and success of Columbia Capital, the company must analyze its’ businesses to maintain profitability. The investment banking business is an area which the firm founders are extremely able to leverage as seen by a revenuesof $7 M in10 years. However, due to the rapid growth of the direct investment area, this business line should be spun off. Similar to the telecommunications companies startedby the founders, the group could seek out management and employees for the investment banking arm. A second possibility is a current employee to spin off the arm and run it. Either way, Columbia will be able to facilitate the process and ensure the right staff and management. This founding...