Both Sides of the Table

DECEMBER 11, 2022

If they are private we still have fig leaves that cover us because some rounds might raise debt vs. equity or might fund with terms like multiple liquidation preferences or full-ratchets or convertible notes with caps. So now our collective companies are worth less. If we took them public we are naked now. The tide has gone out.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Both Sides of the Table

DECEMBER 16, 2014

So they will have allocations to US public equities, international public equities, emerging market public equities, real estate, mining, minerals and so forth. Investing is about diversifying investment types so when some factors in a market go well and others go poorly you hedge your risk across assets.

Las Vegas 396

Las Vegas St. Louis Southern California San Diego 396

Both Sides of the Table

MAY 28, 2018

It’s true that some later-stage private equity firms like to fund “roll ups” (a company that acquires many related companies in it sector), but this is seldom the domain of VCs. Every VC knows that the amount you raise is often a proxy for your valuation.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Both Sides of the Table

AUGUST 12, 2010

In the VC & Private Equity world there’s a small number, too, with one of the most respected being PEHub. But there are also going to be those companies that require capex and growth equity (Zynga, Facebook, etc). That’s thanks to Dan Primack , founding editor. Dan also agrees with this.

Seed Stage 232

Seed Stage Valuation Private Equity Venture Capital 232

Both Sides of the Table

JULY 16, 2010

So even within the “alternative class&# our LPs are looking at other asset investment choices such as distressed buyout funds, private equity or hedge funds. Then there is a certain size market for A round VCs, B round VCs and growth equity investors willing to put $50 million to work. VC will shrink. Oh yes it will.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Both Sides of the Table

SEPTEMBER 12, 2010

Many of the growth equity firms have had outbound dialing programs for years. Growth equity firms typically target profitable businesses that are often not technical in nature. Perhaps outbound dialing / emailing programs worked well for growth equity firms in their core business. These kind of companies were seldom startups.

Programming 294

Programming Entrepreneur Private Equity Equity 294

Both Sides of the Table

SEPTEMBER 29, 2009

This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action. As we all know the VC industry is now set to contract dramatically as profiled in this seminal Paul Kedrosky presentation predicting a 50% contraction.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263