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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. Importantly, what does this all mean for startups?

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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. Narrative violation: VC investment in EMEA startups reached an all-time high in the first half of 2022. billion in June 2021. Source: The Economist.

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

Both Sides of the Table

Consider the case of LegalZoom, one of our cities great startups. In 2010 the City of Los Angeles started trying to crack down on tax receipts of Internet startups allocating them to the least favorable gross-receipts tax bracket taking up their city tax by 500%. To attract LP money to local VCs. Startup Advice'

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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. Others will follow. But many of us have been there.

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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.

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The Rise & Fall of Great Venture Firms [Part 2]

Agile VC

Back in the 2000-2001 timeframe, a flood of LP capital was coming into the VC asset class given the strong returns of the mid-late 90s tech boom/bubble. Winning in the sense of finding the most promising startups and earning the right to invest in them. Like many leading firms CRV used this opportunity to raise a huge $1.2

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Making Sense of the Stock Market Drops in Relation to Venture Financing

Both Sides of the Table

I’ve seen friends (and family members) lose much of their savings that way over the years because “Black Swans” happen and in 1987, 2001, 2003 & 2008 (just to name a few from my memory) huge market gyrations caused much financial distress to people seeking short-term gains.

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