Remove 2001 Remove Cost Remove Hiring Remove Private Equity
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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. VC will shrink. Oh yes it will.

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What Everyone Should Take Away from Twitter’s 8% Staff Reductions

Both Sides of the Table

The truth is that the brutal reality of public markets is that they self correct much more quickly than our shitty little private equity illiquid corner of the universe. I encouraged them to stay in shorter-term space, higher per-unit costs but no capital outlays. Does this suck? It affects lives. Others will follow.

Burn Rate 150
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VC Evolution: Physician, Scale Thyself.

500hats.com

Or, as my friend Marc Andreessen might say, Software Eats the Private Equity World. 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.

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409A Valuations

Venture Chronicles

You may recall that back in the 1999-2001 timeframe it was popular practice for option holders who were in a lock-up period following an IPO to use a short process to borrow their company’s stock from other investors and sell it with the promise that they would forfeit their locked up stock when the lock up expired.

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What to Expect When You're Expecting Venture Capital Returns

This is going to be BIG.

One of the first things I did when I joined the venture asset class as a lowly institutional LP analyst in 2001 was to build the VC fund cashflow model. Toss in a few acqui-hires in the $6-8mm post seed. Comparatively, if you look at long term private equity results, I think most investors are winding up with high teens returns.