To investors frustrated with being locked out of the pre-IPO market, business development corporations (BDC) such as Firsthand Technology Value Fund (NASDAQ:SVVC) offered potential for participating in the large IPO gains of hot stocks. The reality hasn't reached the hype from back in 2012 when the Facebook (NASDAQ:FB) IPO blew up. Now over a year later and with Facebook soaring, one might expect the stock to offer huge upside potential, but one glaring issue exists.
The company is a publicly traded venture capital fund that invests in technology and cleantech companies prior to an IPO. It is run by well-known tech investor Kevin Landis that charges management fees of 2% of gross assets and 20% of...
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