WHY PRIVATE INVESTORS WILL OUTPERFORM INSTITUTIONAL INVESTORS IN THE MOBILE ECONOMY

Media Bay Ventures only takes private investments.

We do not take institutional money from pension or retirement funds, hedge funds, mutual funds or University endowments.

We do not take money from Wall Street.

Media Bay Ventures offers it’s investors a truly unique investment opportunity by returning to the successful investment model that created companies like Apple, Intel and Pixar.

Historically speaking, Silicon Valley innovation followed the Media Bay Ventures model; taking private investment or direct investments from corporations.

Since 1986 Sand Hill Road has shifted gradually from private to institutional funding, sometimes referred to as “dumb money” or “brainless money” because the people or governments who pay into these funds are not informed about where their money is being invested. Unfortunately, this move away from Private Investment to Institutional Investment became the new standard in the 1990s, which led to massive DotCom and Green Energy investment failures.*

This cultural change in Bay Area investor groups, and a Wall Street take-over of Sand Hill Road create enormous opportunities for Media Bay Ventures, based around new centers of innovation in the East Bay and beyond.

Since we do not take institutional money, we are allowed more flexibility in our creative approach to new and changing markets and opportunities. In contrast, institutional investors cannot mix funds or alter their course once invested in a company.

An institutional fund that raises money for a 10 year Green fund, or a 10 year DotCom fund must stay the course even if their markets are collapsing. Many groups are forced to spend good money after bad by not being allowed to change course. This is what led to CALPERS losing millions on Green Energy.

Media Bay Ventures is currently the only VC group that markets exclusively to private sector investors.

Our team believes this maverick approach is the best way to invest in a quickly growing mobile content and entertainment market. We value our personal relationships with our investors, and with the projects we represent.

Mike Markkula had a personal relationship with Apple. Steve Jobs had a personal connection with Pixar. All they asked of their companies was to “Just make it great”. We are passionate about our investments, and do everything possible to empower our companies to “Just make it great”.

*In 1986, investment bankers changed the rules governing the Employee Retirement Income Security Act of 1974. As explained by Morgan Lewis in 1986, the Final Regulation Relating to the Definition of Plan Assets suddenly allowed institutional funds to be moved from Wall Street to Sand Hill Road. This legal move also changed Pension fund infrastructure which historically had been required to invest in “core-assets’’ such as money market instruments, government bonds, and large-cap equity to now invest in high risk Venture Capital. Pension funds such as California Public Employees' Retirement System (CalPERS) have been deeply effected by this change in the law.