View from Seed

DECEMBER 4, 2019

The top quartile has distributed 2.03x (vs. 1.68) and the median fund now has distributed 1.27X (vs. The longer the portfolio maintains the same value without distributing back cash, the worse the fund’s ultimate IRR. Based on that metric, the top quartile fund has now distributed 2.03X after 12 years. 2 years ago).

LP 256

LP IRR Distribution Portfolio 256

Both Sides of the Table

FEBRUARY 6, 2019

I’ve heard a lot of people question whether there is too much money in venture capital chasing too few great deals. Valuations are out of control” is the mantra of others. Others believe that new business models are emerging that could replace venture capital all together. We’re in a new tech bubble!”

Venture Capital 292

Venture Capital IPO Mezzanine Early Stage 292

Startup Professionals Musings

SEPTEMBER 8, 2019

A nonprofit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Equity 235

Equity Angel Investor Technical Review Exit Strategy 235

View from Seed

DECEMBER 11, 2019

But even at the Partner-level, the amount of transition in Venture Capital is much more than you perhaps would expect… especially in a business which should have a long term orientation with portfolio investment-hold periods and Partnerships lasting more than a decade. So why is there so much turnover in Venture Capital?

Venture Capital 204

Venture Capital Cap Table Partner LP 204

Version One Ventures

SEPTEMBER 22, 2021

Note: TVPI stands for total value of investments net of fees / invested capital; DPI stands for distributions (= cash to LP’s) / invested capital). Our returns are obviously very good, but in no way unique in today’s venture markets, especially among emerging managers that invest at the seed stage.

Venture Capital 201

Venture Capital IRR Private Equity Seed Stage 201

Both Sides of the Table

FEBRUARY 6, 2017

It was only a year ago that many in the Venture Capital industry were predicting that “winter was coming” and to be fair the author of this post was chief amongst them. So if funding from VCs slowed, valuations dropped and burn rates were slashed, WTF happened to winter again? Baidu alone raised $3.2

Venture Capital 150

Venture Capital Saudi Arabia Kuwait Burn Rate 150

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. So it’s unsurprising that typical “A rounds&# of venture capital were $5-10 million.

Venture Capital 334

Venture Capital Software PHP Open Source 334

Startup Professionals Musings

SEPTEMBER 20, 2017

A nonprofit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 132

Angel Investor Equity Technical Review Exit Strategy 132

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. Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs?

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

David Teten

JANUARY 19, 2021

Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY. Yes, via conversion rights at a valuation cap.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

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. Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs?

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

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. VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

Startup Professionals Musings

OCTOBER 13, 2013

A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Equity 207

Equity Angel Investor Technical Review Exit Strategy 207

Startup Professionals Musings

SEPTEMBER 15, 2012

A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 218

Angel Investor Technical Review Exit Strategy Equity 218

Gust

DECEMBER 6, 2011

Center for Venture Research. Venture Capital. $20 It is clear from this table that Friends and Family, Angel Investors and Venture Capitalists provide 95% of the capital for new ventures. So, generally, these three major sources of capital are complementary, not competitive. Pre-seed, startup.

Angel Investor 179

Angel Investor Venture Capital Valuation Software Engineering 179

Startup Professionals Musings

JULY 3, 2011

A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 238

Angel Investor Technical Review Exit Strategy Equity 238

Startup Professionals Musings

FEBRUARY 15, 2015

A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 120

Angel Investor Equity Technical Review Exit Strategy 120

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.]

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

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.

Valuation 48

Valuation Common Stock Cap Table Software Review 48

Reid Hoffman

DECEMBER 17, 2019

It’s become fashionable among some entrepreneurs, and even some venture capitalists, to badmouth the venture capital industry. But to paraphrase Winston Churchill, venture capital is the worst method for financing scaling startups except for all the others. All seven raised venture capital.

Venture Capital 36

Venture Capital Cofounder Silicon Valley Government 36

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. Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs?

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Steve Blank

MARCH 31, 2014

As the venture capital business has come roaring back in the last 5 years, startups are awash in available capital. Look at the valuations of companies like Tesla, Illumina, and Twitter. The companies that can show “startup-like” growth rates of 50% plus per year will get stratospheric market valuations.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

YoungUpstarts

NOVEMBER 20, 2019

The market for our product was global, and we had unique advantages in terms of our product and how we distributed it to customers. Have a reasonable attitude about your early-stage valuation, and don’t get too hung up on it. Ultimately, these advantages helped us secure the funding we needed. But I also faced some significant hurdles.

Technical Review 140

Technical Review Due Diligence Early Stage Differentiation 140

Steve Blank

SEPTEMBER 14, 2009

Over the same 30 years, Venture Capital firms have honed their skills and strategies to match Wall Streets needs to achieve liquidity for their portfolio companies. One of the biggest mistakes entrepreneurs make is misunderstanding the role of venture capital investors. What Do VC’s Do?

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Startup Professionals Musings

JUNE 6, 2010

A non-profit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

Angel Investor 143

Angel Investor Technical Review Exit Strategy Equity 143

This is going to be BIG.

JULY 30, 2015

You incorporate expected company returns, mortality rates, and fee structures to try to predict how a venture capital fund works from a cash in, cash out, and NAV standpoint. And no, the numbers don't exactly add up--but they're more than close enough for venture capital. It's also not the "average fund". How about price?

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

VC Cafe

SEPTEMBER 16, 2021

I’ve also shared my insights with Techcrunch, in “ 5 creator economy VCs see startup opportunities in monetization, discovery and much more “ As venture capital investors, one question we think about a lot at Remagine Ventures is “where are the opportunities for startups in the Creator Economy?”

Startup 207

Startup Social Media Venture Capital Audio 207

Austin Startup

OCTOBER 15, 2017

What seems to be the best way to create customers and revenue may result in a business model that is out of vogue with the investment world and shortchanges you on enterprise valuation. As a founder cognizant of finding revenue anywhere you can, you are not likely to turn away today’s dollars for a conceptual future enterprise valuation.

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

Both Sides of the Table

MAY 19, 2010

Our guest this week on #TWiVC was Dana Settle , partner at Greycroft Partners , a venture capital firm with offices in New York and Los Angeles. Current round: $35mm in Series C (extension of Series B at higher valuation) from General Atlantic, Matrix Partners. Read more: TechCrunch , Reg Form D , WSJ interview w/ Susan Lyne.

Partner 240

Partner New York City Cofounder Syndicate 240

Gust

OCTOBER 20, 2011

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. million, indicating a somewhat normal distribution.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Scott Edward Walker

JULY 7, 2011

Introduction This post originally appeared in the “ Ask the Attorney ” column I am writing for VentureBeat ; it is part of my ongoing series regarding venture capital term sheets. The problem, of course, is that a so-called “walking dead” company rarely has the cash to buy-back the investors’ shares.

Term Sheet 49

Term Sheet Redemption Venture Capital Preferred Stock 49

www.inc.com

SEPTEMBER 24, 2011

Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Venture Capital Firms. In the past few years, hundreds of small companies have been snatched up by private equity firms willing to agree to ever-rising valuations. Will Work for Equity. By Ryan McCarthy | @mccarthyryanj |. Graham liked the idea.

Arizona 40

Arizona Equity Iowa Venture Capital 40

500hats.com

AUGUST 2, 2012

TL:DR : This post aims to recap significant changes in the venture capital industry over the past ten years, and then make some [biased] predictions as to major forces at play in the next five years. However, all three shifts are related and can be summed up simply as: Geeks are Taking Over Venture Capital.

Silicon Valley 74

Silicon Valley Early Stage Venture Capital Valuation 74

Gust

OCTOBER 17, 2012

In addition, angels were up against a selection problem: All the best entrepreneurs and opportunities would naturally gravitate to the best venture capital funds, leaving only the “scraps” for angel investors. This is absolutely competitive with venture capital returns. The distribution of returns from the different U.S.

Angel Investor 152

Angel Investor Venture Capital Seed Stage Silicon Valley 152

crowdSPRING Blog

NOVEMBER 30, 2012

… Checking In on Foursquare’s Valuation – [link]. Want Venture Capital Funding? How PRWeb Helps Distribute Crap Into Google & News Sites – [link]. Just got acquired? 10 adjustments to make when working for a Big Co. – [link]. The danger of waiting to long to find a business model?

Social Media 100

Social Media Small Business Central African Republic Design 100

Steve Blank

MARCH 18, 2011

The signals are loud and clear : seed and late stage valuations are getting frothy and wacky, and hiring talent in Silicon Valley is the toughest it has been since the dot.com bubble. Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits from the inflated valuations. Carpe Diem.

Internet 334

Internet IPO Silicon Valley Agile 334

Up and Running

DECEMBER 11, 2013

Watch how the sharks deal with valuation. That establishes their proposed valuation. So for example, if they want to give 10 percent of the company for $100,000, that’s a valuation of $1 million; and 30 percent for $150,000 is a valuation of $500,000. But the importance of valuation is also always there.

Valuation 136

Valuation Oregon Burn Rate Angel Groups 136