Remove Definition Remove Limited Partner Remove Management Remove Reputation
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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. Because this is all VCs do and if we intend to work with all of our fellow VCs and entrepreneurs when the rain ends and the sun shines again our reputations matter greatly.

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

David Teten

In descending order of importance, they are: Reputation. At HOF Capital , we try to manage these layers to be “ MECE ” (Mutually Exclusive, Collectively Exhaustive). Specifically, the content for the 7 layers are: Reputation. Jeff Bezos said, “A brand for a company is like a reputation for a person. Email templates.

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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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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

The angel then introduces the entrepreneur to his or her wealthy friends and business connections who, based on the good reputation of the referring angel, also invest. By definition, companies that receive venture capital cannot fund their businesses from operations, and thus need to seek outside capital.

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The Entrepreneur Thesis

Both Sides of the Table

I’m on the record as saying I’m 70% management, 30% market. But when I’m looking to invest the dollars that my Limited Partners have entrusted my firm with I’m going with my view. His logic was, “when I invested the management team knew that I wanted a multi-hundred million dollar exit so they shouldn’t be surprised.

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Why being a VC sucks. Advice to anyone who wants to get into venture capital.

This is going to be BIG.

When you''re out on the road pitching, and getting people to believe in you, you feel a deep sense of responsibility to your limited partners--and there isn''t a day when you don''t wonder why you didn''t just take some easy corporate job where no one would notice if you weren''t working productively. 9) Sometimes, it''s just luck.

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High Returns On A Small Fund Challenge Low Returns On A Big Fund

David Teten

Second, credibility (fund reputation) is a huge confound. Secondly, none of the VC return studies to date, including the ones we discuss here, are definitive. At a macro level, after all, LPs are definitionally invested in all funds. Therefore, the claim won’t extrapolate to any specific brackets.

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