View from Seed

SEPTEMBER 14, 2021

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. So, four years later, DPI is still trying to catch up with TVPI from 2017. This looks more or less true for both TVPI and DPI.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

View from Seed

SEPTEMBER 14, 2021

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. So, four years later, DPI is still trying to catch up with TVPI from 2017. This looks more or less true for both TVPI and DPI.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

This is going to be BIG.

MAY 5, 2023

I understand that now, being an investor in companies that have over 100 employees, closing in on $100mm run rates, where it’s been a long time since I was a Board Observer and most of their interaction is with the bigger, later stage investors that came after me.

Later Stage 218

Later Stage Venture Capital Term Sheet Limited Partner 218

View from Seed

SEPTEMBER 14, 2021

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. So, four years later, DPI is still trying to catch up with TVPI from 2017. This looks more or less true for both TVPI and DPI.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Gust

JANUARY 4, 2012

Later stage companies have some additional concerns: What favorable impact could IP have for PR, marketing and investor relations purposes, or as an attraction to potential acquirors? Nevertheless, experience has shown this to be primarily a later-stage company problem.

Intellectual Property 143

Intellectual Property IP Startup United States 143

Both Sides of the Table

JULY 22, 2010

This states how the proceeds from a sale or dissolution of the company will be distributed. I also won’t say there is never a time for “participating preferred&# but it tends to be in later-stage rounds and particularly in the case where the founders are getting an exceedingly high valuation relative to the norm.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

VC Adventure

AUGUST 15, 2018

Higher strike prices distributes proceeds away from short term gain tax to equity holders who more typically are paying long term gains on the value that was shifted (I’m skipping a huge amount of nuance and detail here but the above is a general representation of how things work). I was wrong.

Valuation 48

Valuation Common Stock Cap Table Software Review 48

David Teten

JULY 25, 2017

Most importantly, we have regular meetings with later-stage VCs and enterprise clients both in the US and internationally to discuss our companies which fit their investment mandates. Effectively, we are a market maker between our portfolio companies and the late-stage VCs and large enterprises which are our co-investors.

Portfolio 60

Portfolio Technical Review Private Equity Database 60

This is going to be BIG.

JUNE 15, 2020

As a former institutional investor, one of the stats we focused on was carry distribution. Lots of the data is skewed toward later stage rounds and I’ve never ever seen stats on who is pitching. If up and comers who were doing the hustling had the right incentives, firms could successfully last for multiple generations.

Venture Capital 122

Venture Capital Institutional Investors Later Stage Limited Partner 122

VC Adventure

MAY 5, 2022

BUT (and you knew there was a but here given the post title…) it’s a poor way to compare the relative performance of funds early, and even into the mid/later, stages of a fund’s life. But that doesn’t seem to be stopping funds or LPs from touting IRR as the gold standard for evaluating relative fund performance.

IRR 116

IRR Metrics Valuation LP 116

Both Sides of the Table

MAY 30, 2018

Many VCs will have a distribution curve where they’ll do a small number of early-stage deals (say $1.5–3 3 million invested at a $6–10m pre-money), a larger number of “down the fairway” deals ($4–5 million at a $15–25 million pre) and a few later-stage deals (say $8–10 million at a $30–40 million pre).Of

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

Both Sides of the Table

JULY 15, 2010

Can you please expand on your post about distributed teams? It was a verbal discussion on my post on distributed teams. - Convertible debt is a loan to the company that doesn’t typically get paid back but rather “converts&# into equity when you raise a larger round at a later date. Great exit. -

Southern California 210

Southern California Venture Capital Seed Stage Angel Investor 210

The Equity Kicker

MAY 31, 2016

The conclusion of the report is that returns in venture capital are distributed across a larger number of companies and across a wider number of venture capital funds than is widely believed. Their advice to LPs is to catch these distributed returns by investing in emerging managers outside of traditional US venture heartlands.

Venture Capital 60

Venture Capital Early Stage Dilution Later Stage 60

VC Adventure

APRIL 16, 2018

That’s true no matter the size fund you’re investing (I’m referring to early stage funds here but a version of this is true even for larger, later stage funds; although a higher level of concentration in later stage funds is actually helpful).

Portfolio 75

Portfolio Later Stage Early Stage Angel Investor 75

VC Cafe

MAY 16, 2023

The market share of chatbots, and LLMs (that will later on be sold to enterprises) will be heavily influenced by user perception.

Artificial Inteligence 178

Artificial Inteligence ChatGPT Generative AI Open Source 178

The Startup Magazine

FEBRUARY 6, 2020

By that time investment bankers were on a roll privatizing assets as far flung as Chilean Electricity Distribution Rights, Montreal’s container port, parking meters in Chicago, sections of the Pennsylvania turnpike, the London City airport, and (the proposed) CA & FL Lottery systems. Ironically, given the U.S.’s

Private Equity 129

Private Equity New York City Chicago Investment Bankers 129

This is going to be BIG.

FEBRUARY 21, 2021

It’s a way of looking at venture that I never thought of before—that venture capital and its distribution of ending outcomes is probably not something you’re going to go after if you don’t have at least a little bit of wealth cushion and definitely not if you’re already under water. She sees that as the best way to run her business.

Venture Capital 162

Venture Capital Cofounder Deal Flow Later Stage 162

www.paulgraham.com

OCTOBER 23, 2010

The distribution of investors should mirrorthe distribution of startups, which has the usual power law dropoff.So Weve found thisprinciple very useful, and we think as it spreads outward it willhelp later stage investors as well. Though a lot of investors are entering this territory, there isstill room for more.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

Both Sides of the Table

MAY 25, 2013

As you can see from the chart their data suggests there are about $25 billion of VC distributions per year in the US. But the larger funds usually have lower returns because they are often investing bigger dollars at later stages with less risk and therefore lower returns. The top 2% do not drive 98% of the returns. Yeah, true.

LP 374

LP Later Stage IRR Term Sheet 374

Both Sides of the Table

JUNE 28, 2011

The larger ones also do more to hold CEO summits, create recruiting databases, set up email distribution lists, create pools of stock options that can be shared across companies, etc. At least in the consumer & business web. I still think it was Amazon that created this category not the other way around.

Venture Capital 334

Venture Capital Software PHP Open Source 334

Ben's Blog

APRIL 7, 2021

As companies and cities wrestle with the future of work, future of cities, and future of tech made possible in a post-COVID future, the question is whether it also impacts — and presents an opportunity to address — one of the greatest problems of our time: the unequal distribution of economic opportunity across the United States.

Silicon Valley 36

Silicon Valley Non-Compete San Francisco Government 36

ReadWriteStart

AUGUST 26, 2022

Later stage, public companies are right-sizing their teams, so there are many opportunities out there. So just keep an eye out; depending on your growth stage, it could be reasonably attractive. There are billion-dollar startups that have a later stage of maturity than the $10 billion company, right?

Partner 132

Partner Cofounder Retention Acquisition 132

View from Seed

APRIL 7, 2015

Even later stage VCs will push to meet founders much earlier than seems appropriate for their sweet spot. ” You’re likely to get better feedback that way. Dirty Secret #3: Most VCs Don’t Really Invest Early, But All Want to Meet Early. Almost all VCs say they like to invest really early.

Early Stage 120

Early Stage Founder Later Stage Engineer 120

Startup Lessons Learned

MAY 31, 2019

As you probably know, we’ve been investing against a consistent theme - Marc Andreesseen’s “software is eating the world” - and always at multiple stages of a company’s growth - from seed to later-stage venture. Morgan credit card business to acquire tons of Square customers at a very low cost.

Lean 108

Lean Venture Capital Conversion IPO 108

David Teten

DECEMBER 3, 2019

Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. Later stage investors are using for sourcing private company marketplace services focused on more established companies, listed below under “Step 11: Exit”. They read reviews of the products of target investments.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Duct Tape Marketing

MARCH 20, 2019

Hopefully, though, you aim to progress to the later stages. But you can’t do that without the fundamentals from the build stage being in place. Marketing Podcast with John Jantsch on the Model for Marketing Maturity, Stage 3: Ignite. The model of marketing maturity is divided into three phases for a reason.

Marketing 65

Marketing Social Media Campaign Analytics 65

Small Business Force

FEBRUARY 21, 2014

In early stage companies (and even some later stage or mature ones), there is no one area where most entrepreneurs and small business owners are lacking in just basic fundamentals, than in dealing with their company's finances and financial management. If it was a distribution business, shipping costs were critical.

Finance 37

Finance Management Forecast Entrepreneur 37

VC Cafe

APRIL 29, 2020

The $349 billion aid package issued by the US Government and distributed in the form of SBA loans was quickly gobbled up by a large number of applications, many of which were from venture-backed or PE-backed startups. Source: NVCA , “Startup Ecosystem Faces Capital Crunch over Coming Months” USA – SBA Loans and PPP.

SBA 124

SBA Technical Review Startup 124

Steve Blank

OCTOBER 1, 2009

Top management was trying to coordinate all of the operating details (sales, manufacturing, distribution and marketing,) across all the divisions and the company almost went bankrupt that year when poor planning led to excess inventory (with unsold cars piling up at dealers and the company running out of cash.)

Silicon Valley 156

Silicon Valley United States RSS Customer Development 156

Austin Startup

MARCH 7, 2021

San Antonio has Geekdom with USAA and Port San Antonio with the Air Force Cyber Command; Houston has The Ion with Rice University, Microsoft and NASA and The Cannon distributed across the city; Dallas has Pegasus Park with UT Southwestern and Lyda Hill Philanthropies; and Austin has Capital Factory with the Army Futures Command.

Texas 90

Texas San Antonio Houston Dallas 90

Genuine VC

MAY 20, 2013

REALITY: The earlier-stage an investment is for a venture firm, the more the bet is on the team, the more reticent they are to want to change the core DNA of the company. People are accustomed to normal distributions, as they’re both intuitive and commonplace. Rather, the distribution everything in VC is asymmetric, not broken.'

Venture Capital 244

Venture Capital Cap Table Portfolio Early Stage 244

Both Sides of the Table

JUNE 29, 2011

Some have done earlier-stage deals and done well. Others have chased earlier-stage but lack the skills or relationships to do this effectively. Some have moved into later stage investments in an effort to “put logos on their websites.&# These trends have put pressure on traditional VCs.

Venture Capital 296

Venture Capital Software LP Early Stage 296

VC Cafe

JANUARY 2, 2023

Sector funding distribution according to Greenfield Partners. As a result, I expect to see slower pace of investing across stages. Lower valuations , especially in later stage. Israeli public tech companies saw market cap decline of 65% in 2022. ” Fred Wilson.

Valuation 158

Valuation Down Round Venture Capital 158

Version One Ventures

JULY 29, 2020

Lending protocol Compound approved a proposal to distribute COMP tokens to regular borrowers and lenders on the platform, basically rewarding the participants of the platform with a stake in the protocol (like a gigantic loyalty program). Short-term versus long-term incentives.

Networking 113

Networking Government Stock Options Later Stage 113

This is going to be BIG.

MARCH 3, 2019

We do the work of sorting through the pitch decks of everyone and their mother, finding the diamonds in the rough, helping them turn an idea into something that looks like a company—and we do it for a fraction of the management fees of our later stage counterparts. That creates a tradeoff of paying up for more information.

Portfolio 110

Portfolio Burn Rate LP Distribution 110

View from Seed

FEBRUARY 17, 2015

That’s a pretty astounding figure, especially when you consider that many students in the latter years of that cohort have yet to raise or have yet to raise later-stage, larger rounds. As in all things startup-related, the distributions are not even. Combined, they’ve raised over $2.5

North America 120

North America Founder Cofounder San Francisco 120

ConversionXL

APRIL 5, 2016

See how Slack clearly explains (using microcopy ) how entering a Team Name would help the user at a later stage, leaving no space for uncertainty… 2. Avoid gradual engagement solutions that simply distribute the various input fields in a sign-up form across multiple pages. Account Setup After App Access. Conclusion.

Later Stage 48

Later Stage Email Conversion Audience 48