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How is the VC Asset Class Doing?

View from Seed

One way to think about this is how quickly LPs expect to get their capital back from a VC commitment. Typically, when an LP makes a commitment to a new VC relationship, they are expecting to stay with that group for at least 2-3 funds. LP Constraints. Most LPs are trying to manage some targeted asset allocation.

LP 256
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Academic Research on Accelerators

Feld Thoughts

The second, Techstars, was founded in 2006. I was asked if any existed the other day by an LP, so following is a list of papers I am familiar with. Accelerators and Crowd-Funding: Complementarity, Competition, or Convergence in the Earliest Stages of Financing New Ventures? The first accelerator, YC, was founded in 2005.

LP 106
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When VCs Don’t B t You

Feld Thoughts

In addition to being an incredibly supportive investor in us from the beginning, this LP has become an extremely close friend. As I was walking home after dinner, I thought about the person who had introduced us to this LP. In early 2006, my partners at Mobius and I decided not to raise another fund.

LP 155
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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. “I don’t know the exact math, but I hear it again and again: the top 2% of firms generate 98% of the returns in venture capital.” hours / day.

LP 374
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The Rise & Fall of Great Venture Firms [Part 2]

Agile VC

1) Self-Awareness & Humility - These are of course virtues that transcend venture capital or even professional pursuits broadly. A good example of this was Charles River Ventures experience with their 11th fund. And yes… great firms are self-confident too.

Cofounder 193
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The VC Shakeout: Are We There Yet?

Agile VC

There are some obvious structural reasons why a shakeout in the venture capital industry takes a long time. The reality is that it wasn’t until the GEC (Global Economic Crisis, Great Recession, Credit Crunch, call it what you will) of late 2008 and early 2009 that the shakeout really began for venture capital.

LP 154
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Can VC’s Invest Across Two Funds?

Both Sides of the Table

This is part of a series that I’ve been working on called Understanding Venture Capital. As a reminder, VC funds are comprised of money from LP’s (Limited Partners) that include university endowments, pension funds, high-net-worth individuals, insurance companies and large corporations.