Feld Thoughts

AUGUST 13, 2018

The post specifically discussed three items: Management Fees, Recycling, and Carried Interest. Many fund agreements, including ours, require us to pay back all fees and expenses before taking carried interest. We think this is another element of GP-LP alignment and have supported this from our first fund.

LP 117

LP Management Carried Interest .Net 117

Steve Blank

MARCH 26, 2014

This leads to two key points: Point 1: You have to fight – and win- on two fronts (both outside and inside), in order to succeed in corporate venturing. One memorable example of this was Xerox’s internal venture capital fund, Xerox Technology Ventures (XTV). As Steve would say, this is a big idea.

Startup 327

Startup Business Model Lean Russia 327

Agile VC

JULY 11, 2012

I happen to be fascinated by the history of the VC industry, and one of the things we discussed at a recent offsite are the common threads behind the rise and fall of great venture capital firms. What’s a “fair” split of fee income and carried interest when a partner joins several years/funds after others?

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Silicon Valley Carried Interest Cofounder Boston 240

David Teten

MARCH 2, 2013

I recently had an extensive debate with Tom about why and whether small funds (like mine, ff Venture Capital ) tend to outperform large funds (like his). We thought that you’d be interested in our conversation. While I don’t ultimately agree with the article’s conclusions, I think it warrants consideration.

LP 114

LP Securities and Exchange Commission Silicon Valley Venture Capital 114

ithacaVC

JANUARY 10, 2012

One of my students just asked me what a “Venture Partner” is in the context of a venture capital firm. I quickly typed in “venture partner” into the Wikipedia query box. So, then I typed “venture partner definition” into the Google search box. It carries cache.

Partner 49

Partner Carried Interest Caching Harvest 49

ithacaVC

MAY 10, 2011

Fourth, GP1 is entitled to a carried interest in fund profits. In its simplest form, think of profits as amounts returned to the fund in excess of capital commitments. Therefore, the returns from the sale/IPO of the fund’s portfolio companies must clear capital commitments before GP1 gets any carried interest.

Carried Interest 51

Carried Interest Ratchet Limited Partner Due Diligence 51

Professor VC

JULY 25, 2013

Mike Markkula presenting Steve Jobs with first investment in Apple I recently watched an excellent documentary on PBS, Something Ventured: Risk, Reward, and the Original Venture Capitalists. Angel Investors Silicon Valley term sheets venture financing venture capital'

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Agile VC

OCTOBER 29, 2014

Most folks reading this will know that many startups were built in part with the help of venture capital. There’s a wide range of intermediaries for venture capital and private equity investment, each with its own structure and business model. What Are These Intermediaries?

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Venture Capital LP Private Equity Institutional Investors 279

Seeing Both Sides

MAY 11, 2010

On Financial Reform, Barney Frank was very direct when I pressed him on the myriad restrictions that are being discussed in the Senate bill around angel investing and the discussions about taxing carried interest. Here's what he said: "We will exempt venture capital from the carried interest tax.". "We

District of Columbia 36

District of Columbia DC Carried Interest Massachusetts 36

Professor VC

JUNE 20, 2011

While my ownership stake in the company has been diluted through these financings (and the merger with uControl), my carried interest (paper value of my equity) has been going up with each increase in valuation. Labels: angel investing , entrepreneurial finance , entrepreneurial lessons , venture capital. Venture News.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

VC Cafe

MARCH 11, 2010

A midst a 72% decline in funds raised by Israeli venture capital funds in 2009, Battery Ventures announced the completion of its new fund, BV-9, totaling $750 million. Tags: Battery Ventures Israel venture capital. The Israeli office most recently invested in Pursway (see previous coverage).

North America 76

North America Silicon Valley Private Equity 76

BeyondVC

JUNE 29, 2005

I am not sure how many entrepreneurs understand the structure of venture capital funds but the bottom line is that while VCs manage funds, we ultimately report to our investors or Limited Partners (LPs). It is not our money, and we have a fiduciary responsibility to manage it properly and generate the returns our LPs expect of us.

LP 60

LP Private Equity Due Diligence Venture Capital 60

Agile VC

NOVEMBER 13, 2012

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

LP Portfolio Venture Capital IRR 154

View from Seed

OCTOBER 29, 2014

Most folks reading this will know that many startups were built in part with the help of venture capital. There’s a wide range of intermediaries for venture capital and private equity investment, each with its own structure and business model. Lee’s posts also appear regularly on View From Seed.

LP 335

LP Private Equity Institutional Investors Venture Capital 335

Women Entrepreneurs Can

MAY 9, 2019

These folks are accessible across any industry and are particularly useful for entrepreneurs who have moved beyond the seed stage of financing, but don’t yet have the significant revenue needed to court venture capital funding. Solid Organizational Processes. Driving sponsorships for your startup is a numbers game.

Programming 40

Programming Sweat Equity Startup Private Equity 40

K9 Ventures

NOVEMBER 30, 2008

The business of venture capital is relatively young. The birth of modern-day venture capital (not considering the European monarchs financing explorations and projects as venture capital) can be traced back to American Research and Development, which was started by Georges Doriot. of the size of the fund.

IRR 48

IRR Venture Capital LP Early Stage 48

Steve Blank

OCTOBER 29, 2009

In a typical venture fund, the partners receive a 2% management fee. But the biggest innovation was the “carried interest” (called the “carry”.) For the first time venture investors would have a very strong performance incentive. A wave of silicon innovation was about to meet a pile of risk capital.

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Silicon Valley SBIC San Francisco RSS 125

Seeing Both Sides

MARCH 22, 2011

In 2009, the National Venture Capital Association (NVCA) made this topic their policy focus. But then everyone got distracted with the financial crisis and (yet) more regulation related to SEC registration and battles over the tax treatment of carried interest.

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IPO Investment Bankers Massachusetts SEC 38

This is going to be BIG.

FEBRUARY 25, 2019

Partners, in my mind, should have carried interest (upside) in the fund and be able to lead deals and take board seats. They should be the kinds of key people that limited partners are basing their investment decisions on the fund itself on—not two to three year rotational employees.

Syndicate 102

Syndicate Syndication Angel Investor Cap Table 102

This is going to be BIG.

JANUARY 10, 2021

They had raised nearly $2 million of venture capital money to hire an army of workers whose job it was to mindlessly stare at images all day and no one asked about working conditions or if the existence of this company and others like it had costly societal consequences. No other VC asked questions like this.”

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Venture Capital Cap Table Accredited Investor Silicon Valley 150

Seeing Both Sides

MAY 31, 2010

But I cheated and peeked at my email late Saturday afternoon and discovered an email from a friend saying, "I'm surprised to see you take such a public stance on the capital gains tax rates," with a link to a New York Times article on the topic. If I had actually been interviewed for the story, I would have given a more nuanced position.

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Carried Interest New York Massachusetts Greece 35