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Many other companies have set up venture capital units.
Almost all of the firms have set up venture capital units trading expertise for stakes in start-up companies.
Some Fortune 500 behemoths established venture arms in the 1970's and 1980's, while giants of the new economy, like Intel and Lucent Technologies, have poured hundreds of millions of dollars into their own venture capital units.
First Chicago said it would not have a stake in the new company, to be called Madison Dearborn Partners, but would retain ownership of its two existing venture capital units.
Many other large corporations have similar venture capital units that prowl for synergistic opportunities, including Microsoft, msft, Dell, dell and Intel intc.
Dynamic equity -- incorporating Mike Moyer's Slicing Pie methodology -- is used in the early stages before everyone is paid the equivalent of a full-time salary, at which point it converts to capital units.
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The investment was made through Soros Private Equity Partners, the $2.7 billion venture capital unit of the $10 billion Soros fund group.
The G.E. Capital unit of General Electric has also been approached, this person said, and has not ruled out an investment.
Paul Kagan, chairman and chief executive of Kagan, has been named vice chairman of Primedia's venture capital unit.
In 2002, Accenture, the consulting firm, scrapped its venture capital unit after taking more than $200 million in write-downs.
Samsung Venture is the venture capital unit of the Samsung Group, the No. 1 maker of TV sets; LG is second.
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