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Launching a Portfolio Acceleration Platform at a Venture Capital or Private Equity Fund

David Teten

I’ve recently advised a number of emerging private equity and VC funds who are wrestling with the question: What are the highest impact steps they can take to support their portfolio companies? . Almost every private equity and venture capital investor now advertises that they have a platform to support their portfolio companies.

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How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . But we’re doing it slowly. 4) Manage deal flow.

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The Coming Brick Wall in Venture Capital & Why This is Good for US Innovation

Both Sides of the Table

With more competition in early-stage many VCs are investing smaller amounts at earlier stages. Some are going later stage to not miss out on hot deals. I call this “stage drift.&#. We all know the result of the over-funding of the asset class – poor returns in aggregate for the industry.

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How to Scale Early-Stage Investing

David Teten

Before making the decision to join ff Venture Capital , I did some research on early-stage tech investing as an asset class and how it’s evolving. Although any given early-stage company is quite risky, when aggregated across a large portfolio, returns are very attractive. They’re also inflation-hedged.

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Is @AngelList Syndicates Really Such a Big Deal?

Both Sides of the Table

It should help some entrepreneurs to better access early-stage capital and should allow some angel investors better access to deal flow. Syndicates can move faster in early-stage deals than rounding up 40 individual investors. For starters, what is AngelList Syndicates? Helpful to Entrepreneurs – The most obvious.

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The Legal Side of Entrepreneurship

YoungUpstarts

They also need to decide whether to structure terms as an equity deal or a convertible security deal. These costs make it preferable to use a convertible security for a raise of this size and to structure as equity financing if you are raising closer to $2 million. ” The Cost of Financing. Even $15-20,000 is too expensive.

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How to Scale Support of Portfolio Companies

David Teten

Large private equity funds like KKR can afford to pursue a consulting model ( Capstone ), typically with associated fees, but that doesn’t normally make economic sense for a VC. the “TOPSCAN” framework from my research study on value creation by VCs ): T eam-Building – We aggregate openings across our portfolio on our jobs page.