To: Carl R. who wrote (6102 ) 3/8/1999 9:14:00 AM From: killybegs Respond to of 17679
Some generic information from the Safeguard Sci site(SFE), which I think is a company that the new Ampex is modeling in terms of its strategic investments in digital and web video etc, hosting etc. "Can you explain how Safeguard differs from a venture capital firm and/or other strategic investors? "A: Traditional venture capital firms are established for a limited time with a primary goal of maximizing returns in a short time and liquidating their investment through an IPO or sale. Additionally, limited resources are typically provided in terms of managerial/operational support for the company in which the investment has been made. Alternatively, corporate strategic investors invest in emerging companies to obtain access to a new product or technology without assuming the cost of development. This rationale is often not compatible with development of the emerging company as a stand-alone entity and frequently discourages the emerging company from becoming a public company. Safeguard, on the other hand, is a permanent corporation and a long-term investor committed to a win-win philosophy. We look to invest in companies that have promising growth potential. In general, we seek rapidly growing businesses with an entrepreneurial climate and new technology with a productivity enhancing focus. The company should have both the potential to be a future rights offering and a market leader. Safeguard does not just invest in its companies; it participates in the management and operations of the companies, and, in fact, controls a number of them. Safeguard builds value in its partnership companies directly through a variety of developmental services such as: board member and key management recruitment facilities and support services financial and accounting assistance legal counsel and support merger and acquisition assistance networking and business referrals risk management tax expertise "