Both Sides of the Table

JULY 16, 2010

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. There is also True Ventures that does early stage, seed investments.

LP 311

LP Technical Review Early Stage Silicon Valley 311

BeyondVC

JANUARY 3, 2019

Look at 2001 and 2008’s Lehman collapse and Sequoia RIP Good Times deck for lessons learned. Seed funds back to basics in 2019: We highlighted the barbelling of VC in the year-end 2017 update and see this continuing in 2019. Consider this a back to basics approach the way VC used to be in the Arthur Rock days.

Stealth 79

Stealth Advisory Board Cloud Virginia 79

View from Seed

JANUARY 11, 2017

I was an early employee at PayPal and back in the 2000-2001 timeframe, and we ended up taking a fairly significant amount of strategic investment (tens of millions of $) from various banks in the US, Europe, and Asia. All things being equal, seed and early stage startups are not usually well suited to take strategic investments.

Strategic Investors 120

Strategic Investors Post-Money Valuation Seed Stage Cofounder 120

Both Sides of the Table

DECEMBER 13, 2010

Within a year, by late 2000 / early 2001 consulting firms were firing people en masse. On July 27th, 2001 Accenture IPO’s and many of the partners grew fabulously wealthy. “Reality is, at the seed stage, most rocketships look more like the cardboard variety you’d make as a kid than something NASA developed.

Turkey 302

Turkey Differentiation IP Technical Review 302

Both Sides of the Table

SEPTEMBER 27, 2010

Now we can call you a seed-stage VC or a micro VC. I discussed it in my post on the topic linked above. ** One small note: many VCs who got into the industry in 2001 or later have never seen a “carry&# check. This is evidenced by the current price creep that we’re experiencing for early-stage deals.

Liquidity Event 308

Liquidity Event Silicon Valley Seed Stage Finance 308

This is going to be BIG.

JULY 30, 2015

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. so that's what I said my exits would be as a seed stage fund. Just about every analyst who looks at fund investing has built one.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

Gust

OCTOBER 20, 2011

We also have data points for VC investments in seed/startup companies (but not necessarily pre-revenue companies). The following chart from Dow Jones VentureSource shows very little variation in pre-money valuation of VC seed stage deals over the past decade. Another angel round. – Need venture capital.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146