Both Sides of the Table
JULY 16, 2010
But VC is an “illiquid asset&# so funds didn’t disappear quickly - In 2000/01 the stock market quickly adjusted punishing investors in the NASDAQ and in individual public technology stocks. So as of 2008 total LP commitments were still at nearly $250 billion. So the people who invest in VC funds have two problems.
Agile VC
OCTOBER 23, 2012
The VC industry (both the GP part and the LP part) pays attention to the sector’s returns, but the broader tech ecosystem only occasionally tunes in. LPs investing in venture hold a subset of all the funds in the VC universe by design (see #4 & 5). What about fund of funds (FoF), you ask? 3.0x+ cash on cash) is profitable.
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Feld Thoughts
JULY 28, 2014
Each of the SBIC funds were raised in the 2000 – 2002 time period. On paper, only one is in positive return territory as a fund, but the SBIC leverage is a substantial negative factor for the LP investors in that particular fund. The US government, however, lost most of the $2 billion it put into SBIC firms.”
Both Sides of the Table
MAY 23, 2012
In 1998 there were around 850 VC funds and by 2000 there were 2,300. Thomson Reuters data shows that around $10 billion of LP money went into VCs per year pre bubble. By 2000 the total LP commitments had mushroomed to more than $100 billion. So of course returns from 2000-2010 were subpar on average for the industry.
The Equity Kicker
JULY 8, 2019
From around 2000, and perhaps coinciding with the need to work harder to win deals as opportunities dried up after the internet bubble burst, individual partners at VC firms began adding ‘helping CEOs win’ to their job descriptions. . Building platforms. They called them ‘Platform Teams’ and the value they add varies between funds.
Agile VC
JULY 19, 2012
Back in the 2000-2001 timeframe, a flood of LP capital was coming into the VC asset class given the strong returns of the mid-late 90s tech boom/bubble. Though they only started in 2006, Foundry’s obviously off to a great start with investments in Zynga and AdMeld and a promising portfolio of others.
Both Sides of the Table
SEPTEMBER 14, 2016
And we felt terrible not being able to let every LP in but we were forced to make some hard compromises yet we opened up our fund to Sapphire even though they were a first time LP. We have many LPs who come from industry and this is truly a value-add in a LP/VC relationship 3.
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