Trending Sources

The Importance of Proprietary Deal Flow in Early-Stage VC

Both Sides of the Table

What stage? sorted out pretty early that lawyers were a great source of deal flow. We are judging how well you are coached on stage.

Early-stage Regional Venture Funds–part 2 of 3 of Bigger in Bend

Steve Blank

Part 2: Early-stage Regional Venture Funds. What’s Missing Is Early Stage Capital. Regions are missing early-stage capital.

Why Early-Stage VCs Should Be Careful About Intros from Bankers

Both Sides of the Table

What stage? sorted out pretty early that lawyers were a great source of deal flow. We are judging how well you are coached on stage.

First Half of 2011 Showed Boost in Later Stage VC Deals in Israel

VC Cafe

Seed stage investments are down almost by half, accounting for 3% of investments in the first half of 2011, compared to 5% last year.

Early stage startups don’t need a perfect idea, they need a great thesis

The Equity Kicker

Investors are frequently asked what they look for in a good startup and most good ones answer “Great team, great product and great market” With early stage companies team is paramount because that’s just about all there is in the company. Later stage companies have the reverse situation.

How Can This Be A Billion Dollar Company?

Feld Thoughts

wish he had called it “This Unicorn Thing Is B t For Early Stage Investing” but I think he’s a little more restrained than I am.

The State of Early Stage in March 2014

Dshen

They wanted me to talk to them about the state of startup investing, and I chose to present on the state of early stage investing, the area where I do most of my work. The going rate for seed stage startups is generally $5-6M cap on a note, or pre-money, with jumps up to $8-12M. Each day, more and more investors emerge.

Venture Capital Returns

A VC : Venture Capital and Technology

The NASDAQ Composite beats later and expansion stage funds and all the public indexes beat early and multi-stage funds.

Foundry Group Next

Feld Thoughts

During these discussions, we reflected on the incredible collection of early stage VC firms we’ve invested in personally over the years. At the same time we discussed our later stage investment strategy. The strategy has been a good one and with two early exits (Gnip and Fitbit) we’ve already returned significant capital.

Early stage boards work for stock options, not cash.

Berkonomics

Many early stage CEOs and board members have asked for some guidance regarding pay and time commitments for board members.  Pay early stage board members of companies that are not lifestyle businesses one percent of the fully diluted equity in the form of an option that vests over four years of service. 

Ten million users is the new one million users

Chris Dixon

Some observations: - Thousands of early-stage consumer web/mobile companies were started and funded in last 24 months. Facebook’s market cap is about half of what most tech investors expected before the IPO. - A few breakout early-stage consumer hits (Instagram, Pinterest) have reached tens of millions of users in record time.

What Are Pre-Seed Rounds and Why Do They Exist?

View from Seed

After all, aren’t seed investors (like us) by definition supposed to be the first and earliest-stage investors? Tweet this.).

Later-Stage Pivoting: Preemptive Turnaround Management?

Launching Tech Ventures

by Jesse Garcia The challenges of a later-stage pivot are BIGGER than thoseof an early-stage pivot. Chegg, the online textbook renting platform, is currentlyundergoing a late-stage pivot that builds on its core business into anexpanded market opportunity with a new business model.

Our 2016 Foundry Group Fund and A Little History

Feld Thoughts

We subsequently raised a $225 million fund in 2010 , another one in 2013 , and a late stage fund in 2013. Each is $225 million.

The Opportunity / Growth Fund Trend

Feld Thoughts

With yesterday’s announcement that early-stage VC Greycroft has raised a $200 million growth fund , this type of fund has officially become a trend. ”  Prior to this, plenty of VC firms invested across the early stage to late stage spectrum from the same fund (e.g. So we raised Foundry Group Select.

Early Stage Haven?

Will Price

Recent numbers suggest that early stage investing may yet prove to be a bastion of IRR and extraordinary returns. Apparently, not in the early stage. In later stage investing, winning is almost always a function of share price. Recent data provides interesting insights into industry dynamics. Thoughts

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Top 100 venture VC investments each year average $100-150m gain

The Equity Kicker

The dangerous thing for early stage investors is dilution by later stage investors. That’s the Forward Partners way.

Can’t attract VC money? Buy a business with private equity

The Next Web

Venture capital firms are typically growth-oriented, early-stage investors looking for these proof-of-concept points before cutting a check.

Bigger in Bend, Part 2: Early-Stage Regional Venture Funds

Fresh Inc.: The Staff Blog

What’s Missing Is Early-Stage Capital While the technology gap is closing, what’s still missing in local regions is early-stage capital.

A Five-Minute Tutorial On How To Value Your Startup

Startup Professionals Musings

Future revenue projections are not relevant at the pre-revenue stage. You look like a chump, and probably won’t like their low-ball response.

European seed fund explosion – what does it mean?

The Equity Kicker

As you can see from the graphs below the number of seed funds is growing very fast whilst the number of later stage funds is flat.

The VC Market – 2015 and 2016

Rob Go

From the seed stage perspective, what we’ve seen this year is that the definition of a seed round has broadened considerably. While we continue to focus on companies that are very early, usually well before PMF, we also hear of more and more seed funds that “want to see more traction” before investing. This has started to unfold.

How I Invest

Both Sides of the Table

During the Q&A I was asked about how I make investment decisions in early-stage businesses. I was asked again in an LP meeting later in the week and then again at a founder breakfast gathering we hosted yesterday. know that sounds trite but it’s the best way I can describe my early-stage investments. cannot.

Some Thoughts On Seed Investing

A VC : Venture Capital and Technology

But it is a bit of a return to form for USV as half of the initial investments in our first fund (USV 2004) were made at the seed stage. In our core early stage funds (as opposed to our Opportunity Funds), we make initial investments at the seed, Series A, and Series B stages. It is called USV 2014. But rarely both.

4 Dirty Secrets VCs Won’t Admit

View from Seed

Dirty Secret #1: An early-stage startup’s design actually does matter. But at the early stages, it’s surprisingly impactful.

How Do VCs Mitigate Risk In Their Investment Portfolios?

Ask The VC

Are VCs simply looking to diversify the type and stage of companies in which they invest, or do they employ other financial hedging strategies? I’m not aware of VCs using classic financial hedging strategies. Stage diversification: Some funds have an early stage and late stage investing approach.

A Great Discussion with @skupor @davemcclure @msuster on Changes in the VC Industry

Both Sides of the Table

Video 1 is here : Late stage valuations are in a mini bubble. He said that a16z prefers to invest earlier stage in these types of businesses.

Outsource things you don’t care about

Chris Dixon

At an early-stage technology company this means you do in house: product design, software and/or hardware development, PR, recruiting, and costumer relations/community management. You probably shouldn’t hire an investment banker during an acquisition unless your company is later stage. startups

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Entrepreneurs, Your Funding Strategy will Change When You Start to Engage with Potential Investors

Robert Ochtel

This was a time when venture capitalists and angel investors alike were willing to invest in pre-revenue, early stage companies with a great concept and a first class team.  com) early-stage company investing fever, and invested in anything and everything related to the Internet.  It’s Not the 1990’s Anymore.

7 Criteria To Help Startups Find The Right Investor

Startup Professionals Musings

In all cases, investors tend to invest in people, more than the idea, or even the stage of execution. Let’s consider some basic definitions.

Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

Not all new ventures are at the same stage of maturity. For decades large companies have gone shopping in Silicon Valley for startups. So what?

Introducing the New-Look NextView + Seed-Stage Startup Platform

View from Seed

We take board seats and want to stand shoulder-to-shoulder with founders at the seed stage to try to make the biggest possible impact. Although the definition of seed is changing, we are focused on being the first institutional investor for an early-stage company, and most of our investments are pre-traction. Who Are We? Period.

Fund Raising is a Means Not an End

Steve Blank

And at this early stage you’ll be giving up a larger percentage of your firm to investors. Not all that glitters is gold. What is an IRR?

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Chegg is in the process of pivoting—seemingly long after achieving product-market fit in its core business. What are the challenges of managing a later-stage pivot??

Launching Tech Ventures

by Jesse Garcia LATER-STAGE PIVOTING = PRE-EMPTIVE TURNAROUND MANAGEMENT? The challenges of a later-stage pivot are BIGGER than those of an early-stage pivot. Length of the Runway Like in any change situation, the amount of time available to execute a late-stage pivot is very important.

What Do LPs Think of the Venture Capital Markets for 2016?

Both Sides of the Table

The Biggest Area of Concern is Late Stage Investments. And of course, 50% want a good balance across all stages: seed, traditional and growth.

What Is Venture Debt and How Should Startups Use It?

View from Seed

NVV: What stage of growth is appropriate for a company to have achieved prior to taking on venture debt? What are some pros and cons? GM: No.

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The Authoritative Guide to Prorata Rights

Both Sides of the Table

They often create the biggest tensions between investors who are investing at different stages in the business. These tensions seep out in some angels or seed funds publicly or semi-privately deriding later-stage VCs for their “bad” behavior. have seen bad behavior from later-stage VCs, believe me.

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How Smart Entrepreneurs Select VC / Angel Investors

Startup Professionals Musings

In all cases, investors tend to invest in people, more than the idea, or even the stage of execution. Let’s consider some basic definitions.

Developing a Platform for Web-Accessible Business Documents

Blogtrepreneur | Entrepreneur Blog

This can be built into website design from the start, or it can be included at a later stage. Business

Making Sense of the Stock Market Drops in Relation to Venture Financing

Both Sides of the Table

So why invest in that period of uncertainty unless it’s early-stage and thus valuation matters less. And I said so publicly.

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