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What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

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.

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It’s Morning in Venture Capital

Both Sides of the Table

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.

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As Populist as it May Feel, 98% of VCs Aren’t Dumb

Both Sides of the Table

But as an LP you can’t count on that any more than VCs can. The goal of an LP is to get into the top decile. When it went to raise its fund 10 years ago the rumor was that many LPs were disappointed with recent returns and did not re-up. In 2000 our industry had more than $100 billion in LP money.

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Top 10 dying industries

Start Up Blog

Sales recorded music sold on a physical transportable device (Tapes, CD’s, LP’s et al) have declined 76.3% since the year 2000. Seems they are closing all the factories down in Allan Town – as 23% have closed down since 2000. Cost of wages in labour intensive industry. Music Stores. in the past 10 years.

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Zilliant Raises $13M Series….G?

Austin Startup

But even Walmart (the epitome of brick and mortar) changes prices on some items daily, based upon sales and competitive intelligence. Most people don’t really think of pricing as an elastic thing. An item’s price is the price. So why would you not think that internet retailers are interested in maximizing pricing as well?

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How to Develop Your Fund Raising Strategy

Both Sides of the Table

I raised money as an entrepreneur, like you, in 1999, 2000, 2001, 2003 and 2005 for two different companies. Fund raising (as is much of life) is a sale – pure and simple. As with any sales campaign you need to: Qualify your buyers early so you focus your scarce resources on people likely to buy your product. .

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The Collapse of the VC Ecosystem & What It Will Look Like Post.

Altgate

Growth stage investors are usually the Series B or C investors who come in when the product is in the market but there is little or no revenue and the team is probably in the 20-something range with the goal to ramp it up to 40-50 employees with the new money, build out a sales team, etc. But some will be saved. “dry powder&# ) and $1.5