Last week, AccountingWeb reported a story about how Arthur Andersen is repositioning its practice and conducting business through a new venture capital practice for Internet start-ups. Now that the dust has settled on the announcement, the firm has made public additional details regarding the VC component.
Because everyone--these days--also is in the funding of Internet start-ups, experts are beginning to doubt the sincerity of Andersen's foray into the business. Moreover, they are trying to understand what the firm hopes to gain by the $500 million business.
One aspect of the business that is different from previous deals is that the new company, called Arthur Andersen Ventures, hopes to hold an equity stake in its ventures rather than receive immediate revenues. Already, the company has plans to invest in 15 to 20 start-ups this year.
Andersen plans to partner with U.S. Venture Partners of Menlo Park, CA, who will evaluate and manage the venture assets.
In a related story, Cherine Chalaby ws named managing partner of Andersen Ventures in Europe.