Carnegie Hill Venture Partners announced today that it has closed CHVP Founders Fund I, a US$10 million exchange fund organized to provide diversification and investment advantages to founders of successful private companies.

At the same time, Carnegie Hill is launching Founders Fund II. The new fund will virtually replace Founders Fund I, providing the same advantages and targeting the same professionals, says Carnegie in its news release.

The original fund provides founders of VC-backed information-technology and life-science companies the opportunity to participate with founders shares in a diversified pool of companies.

CHVP Founders Fund I includes companies in enterprise software, semiconductors, bio-simulation, on-line marketplaces, network management and data protection.

Participating entrepreneurs contribute a portion of their founders shares to the fund in return for a limited partner interest, thereby reducing overall asset risk and improving the probability of earlier liquidity.

“The closing of CHVP Founders Fund I occurred during a very difficult time in the market and is a testament to the value proposition it offers,” said Andrew Plevin, one of Carnegie Hill’s Managing Partners, in the news release. “Given today’s longer lead times to IPO or sale, founders are seeking ways to diversify, without diminishing their commitment to their companies’ success. We expect a positive response to CHVP Founders Fund II.”