Both Sides of the Table

JUNE 29, 2011

Yesterday I wrote Part 1 of the series on the changes to the software industry over the past decade that has led to changes in the venture capital industry itself. Some have done earlier-stage deals and done well. Others have chased earlier-stage but lack the skills or relationships to do this effectively.

Venture Capital 296

Venture Capital Software LP Early Stage 296

Genuine VC

MAY 20, 2013

Compared to most other areas of finance, venture capital is practiced as more of an art, as opposed to a science. The art of venture capital also means that for entrepreneurs raising it, there isn’t one definitive playbook which can be used as a guide. MYTH: The venture capital model is broken.

Venture Capital 244

Venture Capital Cap Table Portfolio Early Stage 244

Both Sides of the Table

JUNE 28, 2011

In this three-part series I will explore the ways that the Venture Capital industry has changed over the past 5 years that I would argue are a direct result of changes in the software industry, not the other way around. million in team costs to code, launch, manage, market & sell our software.

Venture Capital 334

Venture Capital Software PHP Open Source 334

Steve Blank

APRIL 23, 2014

In response, venture capital firms like Sequoia and Andreessen/Horowitz are hiring new partners just to work with their portfolio companies and match them to corporations. If they acquire later stage companies who already have users/customers and/or a predictable revenue stream, they are acquiring companies which are executing.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

Both Sides of the Table

JULY 22, 2010

Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. Those options need to come from somewhere.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . In liquid markets, most of the calories expended on technology and analytics are focused on trade selection, or “ origination ”. 2) Market .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

View from Seed

SEPTEMBER 14, 2021

Will Quist did a great job of explaining this market rhetoric in this thread. The three-question framework goes as such: Q: How much tech-related market cap will be created in the next 10-20 years? Q: What is going to happen to the cost of capital? So, on one hand, the market see ms like a total frenzy these days.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

VC Cafe

JANUARY 2, 2023

Israeli public tech companies saw market cap decline of 65% in 2022. 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. The case for US venture capital outperformance ( source ).

Valuation 158

Valuation Down Round Venture Capital 158

View from Seed

SEPTEMBER 14, 2021

Will Quist did a great job of explaining this market rhetoric in this thread. The three-question framework goes as such: Q: How much tech-related market cap will be created in the next 10-20 years? Q: What is going to happen to the cost of capital? So, on one hand, the market see ms like a total frenzy these days.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

VC Adventure

AUGUST 15, 2018

Back in the olden days of venture capital, company boards had wide discretion in pricing company options. However the board could determine what that fair market value was and, generally speaking, there wasn’t a practical way that these valuations could be challenged. Quick note: I’m not your lawyer. 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

View from Seed

SEPTEMBER 14, 2021

Will Quist did a great job of explaining this market rhetoric in this thread. The three-question framework goes as such: Q: How much tech-related market cap will be created in the next 10-20 years? Q: What is going to happen to the cost of capital? So, on one hand, the market see ms like a total frenzy these days.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

This is going to be BIG.

FEBRUARY 21, 2021

Or that venture capital is a meritocracy? This doesn’t take into consideration, however, that venture capital is a financial product—a product that works for some people and doesn’t work for others. We know what the racial and gender wealth disparity looks like: This is a lesson taught to be by Jewel from Collab Capital.

Venture Capital 162

Venture Capital Cofounder Deal Flow Later Stage 162

Austin Startup

JUNE 26, 2019

While the journey of JuiceBox Hero is coming to a close, we know that our small but mighty team’s commitment to innovation for women, families, and under-represented markets is far from over. The Skinny: Two years ago I embarked on a mission to bring to market a modern way for parents to find daycares and preschools. We did that?—?and

Silicon Valley 54

Silicon Valley Startup B2C Sweat Equity 54

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

Austin Startup

MARCH 7, 2021

Texas is the most promising technology market in the United States. If you want to launch a new business, this is a great market to launch from because you can easily reach all of the major Texas cities with one office. The larger Dallas metro-region is the fourth largest in the country and Houston metro-region is the fifth.

Texas 90

Texas San Antonio Houston Dallas 90

Both Sides of the Table

MAY 25, 2013

. “I don’t know the exact math, but I hear it again and again: the top 2% of firms generate 98% of the returns in venture capital.” As you can see from the chart their data suggests there are about $25 billion of VC distributions per year in the US. It’s a market, after all. The second is not.

LP 374

LP Later Stage IRR Term Sheet 374

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “ The Age of the Unicorns ” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.” Emotional Biases.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

A Crowded Space

AUGUST 4, 2011

I’m your host, Marcus, and today we’re talking to Josh Breinlinger, who currently works as a senior associate at Sigma Partners, a venture capital firm in Menlo Park. So I moved on to an online advertising company briefly and headed up marketing and product. Josh: Thanks for having me. Marcus: Okay.

Technical Review 60

Technical Review Venture Capital San Francisco Boston 60

Professor VC

DECEMBER 8, 2015

Often times those involve trading within a venture capital portfolio or between two venture firms portfolios. But what about the case where both companies are well capitalized and doing well? It takes time for the business to catch up to these market expectations and valuation. Most never make it there.

Merger 28

Merger LP IPO Redemption 28

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.) car market.

Silicon Valley 156

Silicon Valley United States RSS Customer Development 156

Up and Running

DECEMBER 9, 2014

They cover funding for small businesses from the initial funding stage to later stages of growth, and other areas in between. It started in college when I started my own music marketing and production company. If you don’t know what your cash flow forecast is, you don’t really understand your capital needs.

Small Business 95

Small Business Finance Forecast Metrics 95

techcrunch.com

OCTOBER 23, 2010

The timing is perfect, there is more than a little overlap with Vivek Wadhwa’s guest post on venture capital earlier today. One of the things I do as a founder of a later stage startup is to meet with early stage entrepreneurs to help them get their companies going. Johnny Good post.

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84

This is going to be BIG.

MARCH 3, 2019

How then, do you expect to make money when you’re buying on the public market? Seems like that should translate over to the venture world, too. First, price discipline doesn’t work in overly competitive markets. Everyone knows the answer to that. Buy low, sell high.” How come VCs don’t think about it that way?

Portfolio 110

Portfolio Burn Rate LP Distribution 110