View from Seed

APRIL 2, 2024

When we started NextView back in 2012, we often used the metaphor of the beer industry to describe the evolution of the VC business. AB Inbev was huge back in 2012 but is only larger today. From 2012 to 2021, VC dollar inflows went from about $25B to over $128B in 2021. But consolidation has not happened at nearly the same rate.

Merger 343

Merger Non-Compete Early Stage Venture Capital 343

View from Seed

DECEMBER 4, 2019

If you look 5 years later at the 2012 vintage, top quartile TVPI is 2.29. The top quartile DPI for the 2012 vintage is 0.62. So, in a nutshell, this suggests that the 2012 vintage is appreciating in value faster than the older vintages but seem to be distributing out cash more slowly. That’s only 0.5X nearly the same as 2007.

LP 256

LP IRR Distribution Portfolio 256

View from Seed

APRIL 30, 2019

Google was a one such company when they went public in 2004 and Facebook was too at their 2012 IPO. I believe this was primarily because public market investors believed there was some chance that these high profile consumer companies would be once-in-a-generation type companies.

IPO 180

IPO B2B B2C Institutional Investors 180

View from Seed

SEPTEMBER 14, 2021

Note : not including vintages > 2012 because they have not been fully baked and there is some noise. For this analysis, both TVPI and DPI are relevant to varying degrees based on the maturity of the funds. The chart below illustrates this delta by vintage year. Source: Cambridge Associates.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

View from Seed

DECEMBER 6, 2018

This was back in January 2012, a simpler time… when there was only one kind of seed round, when Series A firms invested pre-revenue, etc. Almost seven years ago, I wrote a post about the difference between a “no” answer and a “no yet” when pitching early-stage VCs. No, this is not some waxing nostalgic post.

Seed Stage 120

Seed Stage Early Stage Differentiation Lead Investor 120

View from Seed

SEPTEMBER 14, 2021

Note : not including vintages > 2012 because they have not been fully baked and there is some noise. For this analysis, both TVPI and DPI are relevant to varying degrees based on the maturity of the funds. The chart below illustrates this delta by vintage year. Source: Cambridge Associates.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

View from Seed

DECEMBER 6, 2018

Evernote (reportedly cashflow positive but presumed valued less than $1B in 2012 Series D). for $250M in 2016 by Hudson Bay, subsequently acq. reportedly for <$100M in 2018 by RueLaLa). So that’s what’s happened to the OG unicorns. What about today? As it turns out, unicorns just aren’t that special or rare today.

IPO 120

IPO Valuation San Francisco Silicon Valley 120