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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 the people who invest in VC funds have two problems.

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Take Five – Venture

VC Cafe

Another impact of the meltdown of the public markets is on performance, in LP and VC books which resulted in 68% of funds estimated to have marked down companies in their portfolio. For example, Klarna is rumoured to be raising $650M in fresh capital at $6.5 billion valuation, according to the WSJ, down from $45.6 billion in June 2021.

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Why We Need to Elect @EricGarcetti on Tues as Next Mayor of Los Angeles

Both Sides of the Table

To attract LP money to local VCs. Dedicated Public Servant : Garcetti has been a member of the LA City Council since 2001 and was a three-time president. We can try to reinvent Hollywood film and TV (Hulu, Epoxy.tv, Blayze, Chill, TasteMade) or we can watch it migrate out of our city. To attract companies to locate and stay in LA.

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

Both Sides of the Table

I spoke at Michael Kim’s excellent annual Cendana VC/LP conference today. We have an entire generation of startup founders who don’t have muscle memory from getting their burn rates back into shape from 2008/09 or 2001-2005. Here’s my take away. Some companies have to go first. Others will follow. It’s not fun.

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Do You Love Your Job?

Feld Thoughts

Since then, I’ve been a founder of a number of companies, a CTO of a public company that acquired my first company, an angel investor, a VC in two different firms that I helped start, and an LP in a bunch of VC firms. I finally realized a limit, and choose to abandon my operating roles and just be an investor.

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Why The SBIC Doesn’t Work For Venture Capital Anymore

Feld Thoughts

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. As a partner in one of the most visible VC firms in Colorado and an LP in many of the Colorado VC firms, I’ve never heard from Matthew or anyone from the SBIC.

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Do You Pay Yourself First or Last?

Hunter Walker

Homebrew pays me a salary less than I earned in 2001 but definitely have the potential to make substantial returns in profit sharing if we do well. Satya and I were very intentional to not try and innovate on our approach to startup cap tables or LP agreements. Let me be clear, I’m not claiming poverty. Nothing wrong with that.