Both Sides of the Table

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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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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Gross Burn vs. Net Burn. Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. (it Net burn is the amount of money you are losing per month. I often see companies burning $100,000 per month (net) looking to raise $6-8 million.

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Upfront Ventures Raised New $280 Million Fund

Both Sides of the Table

We’ve been dying to tell you all for a while that we had raised a new venture capital fund and of course given SEC filing requirements the story was somewhat already scooped by the always-in-the-know Dan Primack a few weeks ago. Family Offices (of high-net-worth individuals or families). We raised $280 million.

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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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Should Startups Focus on Profitability or Not?

Both Sides of the Table

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. They raised $5 million in venture capital to fund growth. Simplifying: Revenue -.

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Playing the Long Game in Venture Capital

Both Sides of the Table

LPs Haven’t Yet Grokked the Long Game While the VC community realized 5ish years ago that short-termism in venture capital didn’t make sense and has capitalized on the scale advantages of letting companies go long, the LP community by and large hasn’t totally grokked this.

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What is the Right Burn Rate for your Startup?

Both Sides of the Table

The Basics The starting point — the 101 — is knowing the difference between gross burn and net burn. Gross burn is your cost base and net burn is the difference between your revenue and costs. GAAP Net Income, which at times isn’t a good reflection of cash burn). In short, it’s the amount of cash you’re burning every month (vs.

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