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What Do LPs Think of the Venture Capital Markets for 2016?

Both Sides of the Table

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. In fact, if you add the capital flows of the past ten years, there have been just shy of $50 billion in net cash outlays.

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How Venture Capital Decision Making Has Changed During the Pandemic

View from Seed

Noting our own experience, we questioned whether the fast proliferation of virtual interaction introduced by the COVID-19 crisis had changed investor decision-making more broadly across the venture capital industry. Following initial decision paralysis, many venture capitalists have returned to pace.

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Are Business Plans Still Necessary?

Both Sides of the Table

This is part of my ongoing series of posts and I need to file this one under both Raising Venture Capital and Startup Advice. I’m not even talking about your 12-page Powerpoint presentation that you need to raise venture capital or to talk with potential biz dev partners. 66% Net Operating Margins?

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10 Business Model Components Required In Every Plan

Startup Professionals Musings

There are dozens of sources to help you construct your business model, and a good example is a classic book by venture capital investor Elizabeth Edwards, simply named “ Startup ,” which is really designed as a handbook for launching a company for less. How will you differentiate your product or service? Target market.

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Should Startups Focus on Profitability or Not?

Both Sides of the Table

If you spent the 3 years perfecting some hugely differentiated technology IP that may also be different. Gross Profit (also called Gross Margin or sometimes “Net Revenue”). And assuming they both had the same net profit margins (profit / revenue) then the former company would be much better off at the end of the year.

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What to Expect When You're Expecting Venture Capital Returns

This is going to be BIG.

You incorporate expected company returns, mortality rates, and fee structures to try to predict how a venture capital fund works from a cash in, cash out, and NAV standpoint. And no, the numbers don't exactly add up--but they're more than close enough for venture capital. It's also not the "average fund".

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The Courage to Monetize

Austin Startup

If you deliver exactly the same results at the same net cost to the customer via a SaaS product, you may get a tech multiple 10X higher. Heck, there was no venture capital in Dixie in that era. But, it is likely the major differentiator between a win and a loss whether you are selling B2B or B2C.