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Does the Size of a VC Fund Matter?

Both Sides of the Table

It in not uncommon to see a VC talk about “total assets under management&# as in “We have $1.5 billion under management.&# I don’t really understand why VCs do this since it’s mostly a meaningless number. What is total assets under management? -

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What’s The Optimal Portfolio Strategy for a Venture Fund?

VC Adventure

Nassim Taleb’s book, The Black Swan had just come out and we decided to read the book and discuss its implications for the venture firm we were about to start in late 2006. I think we intuitively understood this back in 2006 and the cruz of our debate centered around just how diversified should a portfolio like ours be.

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Looking for Funds in All the Right Places

Austin Startup

With the sting of losses so fresh, much of the angel activity dried up in the early 2000s, but it restarted with the launch of Central Texas Angel Network in 2006 and Capital Factory opening its doors in 2009. Entrepreneurs with early stage companies typically look for local funding before going out of region to pursue other funding sources.

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New money into venture explains ups and downs in the market

The Equity Kicker

With this slide he’s explaining that in 2006-2007 investments into startups were equal to the funds raised by VCs, implying that only minimal amounts of non VC cash was invested in startups, but by 2014/2015 the situation had changed dramatically.

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As Populist as it May Feel, 98% of VCs Aren’t Dumb

Both Sides of the Table

After all, I am no stranger to the publicly expressing the frustrations of dealing with the downside of this industry as I wrote about in 2006 when I was an entrepreneur. But the larger funds usually have lower returns because they are often investing bigger dollars at later stages with less risk and therefore lower returns.

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Understanding Changes in the Software & Venture Capital Industries

Both Sides of the Table

million in team costs to code, launch, manage, market & sell our software. We had to learn how to be better at “load balancing & replication&# – meaning how we managed data across all the boxes since they weren’t centralized on one box. Then they launched a simple database, management tools and so on.

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The Seeds Have Changed: An Epilogue to The New Venture Landscape

K9 Ventures

As the check size increases, investors tend to look for more traction, established revenue models, proven unit-economics, and other metrics that were previously associated with later stage companies. The management fee structure provides a perverse incentive to GPs to increase the size of their funds.