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

Both Sides of the Table

The VC industry grew dramatically as a result of the Internet bubble - Before the Internet bubble the people who invested in VC funds (called LPs or Limited Partners) put about $50 billion into the industry and by 2001 this had grown precipitously to around $250 billion. So as of 2008 total LP commitments were still at nearly $250 billion.

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How Lemming VCs Cause Venture Recessions

Mucker Lab

Combined with the usual summer slowdown, some are already raising the spectre of 2001 or 2008. Financially, they have to reserve capital to support large portfolio companies that account for big portions of the portfolio and thus make less early stage investment. The “venture recession” of 2016 is in full swing.

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boldstart 2018 recap and what’s hot in enterprise 2019

BeyondVC

Look at 2001 and 2008’s Lehman collapse and Sequoia RIP Good Times deck for lessons learned. Either you’re a mega fund or an early stage fund, being caught in the middle is a place you don’t want to be.

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Working for Equity Instead of Cash

genylabs.typepad.com

Media Fragmentation and the Growth of Small Publishers » April 07, 2008. Before you agree to take equity in lieu of cash, you need to understand that any individual early stage start-up company equity is most likely going to be worthless. The best start-up I ever invested in went bankrupt in 2001. Assistant Edge.

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Startup Advice: When to Use a Consulting CTO

rapidrollout.wordpress.com

Preserve your equity by using a consulting CTO to ramp up your company before securing early-stage financing and hiring a permanent technology partner. Though after the dotcom collapse of 2000-2001, there are many more than there were! Why are consulting CTOs so scarce? For one thing, you’ll learn from his mistakes.

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VC Evolution: Physician, Scale Thyself.

500hats.com

While a flood of new VCs came into existence during the late 90’s internet boom, many had difficulty raising new funds after the crashes of 2000-2001 and 2008 , and as a result significantly fewer fund managers exist now compared to a decade ago. In the past ten years there have been several dramatic changes in venture capital.

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This Week in VC with @VCMike Hirshland of Polaris Ventures

Both Sides of the Table

This lasted from about 2001-2004. Since then Mike his built his career by investing in early-stage companies (seed or series A), which is remarkable given that Polaris Ventures is a $1 billion fund. Spun off from Freewebs in 2008, based in Palo Alto. Founded in Sunnyvale, CA in 2001. Total raised: $30mm.