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The Changing Structure of the VC Industry

Both Sides of the Table

Limited Partners or LPs (the people who invest into VC funds) have taken notice as 2014 is by all accounts the busiest year for LPs since the Great Recession began. But it still takes VC to scale a business (thus large capital into industry winners like Uber, Airbnb, SnapChat, etc). and the bigger funds can’t get in directly.

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What Entrepreneurs Should do about Price Fixing

Both Sides of the Table

Typical questions: What do you think of management? Aint no market power here, likely, depending on the definition of “market.&# People call their friends. They’re not in search of price fixing or collusion, they’re in search of diligence information about the company. How well do you know them? I think so.

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What’s the Difference? Venture Capitalist vs. Angel Investor

The Startup Magazine

An article in Forbes explains that a venture capital firm makes its money through management fees (a percentage of the amount of capital that they have under management) and carried interest (a percentage of the profits of the business). Investor Involvement. Entrepreneurstates that angel investments usually are around $600,000.

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Why So Many Small Emerging Managers Don’t Use Placement Agents

David Teten

It would make life a lot easier for emerging managers if they could outsource the entire fundraising process. Empirically, few small emerging investment managers hire placement agents, particularly in venture capital. There are eight main reasons why so many small emerging managers do not work with placement agents: Economics. .

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How VCs Structure a Syndicate and Recruit Coinvestors

David Teten

First, a formal definition: According to Capital Dynamics , “Co-investments are direct investments in a company made alongside and on the same terms as a lead [General Partner]. We see our potential coinvestors in four primary buckets: 1) HOF Capital ’s own limited partners. 2) Investors with very specific value-add.

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With So Many Options for Marketing Your Business, What Content Should You Promote Where?

David Teten

At HOF Capital , we try to manage these layers to be “ MECE ” (Mutually Exclusive, Collectively Exhaustive). By definition, it’s unwritten, but critical. . Your company (or your fund, if you’re a VC) typically has a 7-layer stack of marketing content. In descending order of importance, they are: Reputation. Email templates.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

Management has the wrong pedigree, is geographically undesirable, competes in the wrong industry, and/or has a business model that lacks "scalability credibility" with the venture community. By definition, companies that receive venture capital cannot fund their businesses from operations, and thus need to seek outside capital.