View from Seed

DECEMBER 4, 2019

The top quartile has distributed 2.03x (vs. 1.68) and the median fund now has distributed 1.27X (vs. The longer the portfolio maintains the same value without distributing back cash, the worse the fund’s ultimate IRR. 12 years into a fund, I think LPs are probably primarily thinking about DPI. DPI looks a bit better.

LP 256

LP IRR Distribution Portfolio 256

Both Sides of the Table

MARCH 1, 2016

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. However, they have been sending VCs far more investment checks in the last ten years than they’ve gotten back as distributions.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Agile VC

JULY 24, 2013

I was having breakfast this morning from someone I know from the LP world. We were talking about what’s “working” in the broader VC ecosystem and this person expressed their enthusiasm that today there are a range of different models that are producing attractive returns for LPs. payday lending).

Valuation 200

Valuation Early Stage Distribution LP 200

Both Sides of the Table

MAY 25, 2013

As you can see from the chart their data suggests there are about $25 billion of VC distributions per year in the US. But as an LP you can’t count on that any more than VCs can. The goal of an LP is to get into the top decile. In 2000 our industry had more than $100 billion in LP money. Take for example Accel.

LP 374

LP Later Stage IRR Term Sheet 374

Feld Thoughts

JULY 28, 2014

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.

SBIC 142

SBIC Venture Capital Colorado SBA 142