Venture Capitalists Chart a New Course

With their core business in shambles, some venture capitalists are changing their stripes, styling themselves as investors in distressed assets and public companies... venture-capital firms such as CMEA Capital are dabbling in distressed assets. In one situation, CMEA purchased one of its portfolio companies from creditors and sold off its businesses and intellectual property to help minimize its losses. These moves are extreme measures in trying times. Most venture-capital firms have little to no experience investing in distressed companies or public firms. And the work of dismantling a company is far different than what venture capitalists are hired to do: Nurture companies to life.