Both Sides of the Table

OCTOBER 12, 2014

Prorata rights are one of the most important rights of a private market technology investors and yet are seldom fully understood. In the old days there weren’t many fights about whether angels would take their prorata rights in financing rounds. Why prorata rights used to be less of a big deal to angels.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

Both Sides of the Table

SEPTEMBER 23, 2010

Asked to respond to the topic, “What collusion happens with AngelList, if any&# I wrote the following: “Um, let’s not be naive here and not think that a “form of collusion&# doesn’t happen on virtually any financing round. Typical questions: What do you think of management? What is their market traction?

Entrepreneur 292

Entrepreneur Technical Review Stealth Valuation 292

David Teten

JANUARY 11, 2020

The challenge is that my time and money budget for “influencing”–content creation and marketing– is minimal. Also, since I’m not trying to be a full-time marketer, I can’t use some of the standard celebrity techniques. They’re taking a $1m check from me, or giving $5m to me as a limited partner. Tech stack.

Social Media 60

Social Media Technical Review Media Private Equity 60

Both Sides of the Table

FEBRUARY 25, 2019

Here are some observations I have from this exposure: If a company moves from strength-to-strength with predictable outcomes, easy financings, low staff turn-over, limited competitive threats then the composition of the board probably doesn’t matter as much. As an investor board member I see this as my immediate goal, too.

LP 269

LP Startup Burn Rate Stock Options 269

Both Sides of the Table

MARCH 6, 2017

Every year Upfront Ventures surveys Limited Partners (LPs) who are the main source of capital that invests in VC funds and thus the main source of capital that goes to startups to get an early-warning sense of the year ahead, leaving aside any Black Swans. We’re trying to limit our exposure.”

LP 286

LP Silicon Valley Venture Capital Startup 286

Eric Friedman

AUGUST 18, 2021

He is also co-founder and Managing Partner of Deciens Capital, an early stage investment fund. Dan Kimerling: In today’s venture market, any given fund or affirm or an investor has four things that they could focus on: Qualit Consistency Velocity Scale. Today, we are lucky to welcome Dan Kimerling of Deciens Capital.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Both Sides of the Table

NOVEMBER 9, 2014

We all know that funding markets have changed for startups. Generally speaking in venture capital financings the legal documents will specify that only “major investors” (a threshold set in the agreement – which can be $500,000 investor or more). What is less understood are the consequences of these changes.

SEC 352

SEC Venture Capital Early Stage Cofounder 352

Babbling VC

OCTOBER 3, 2011

Fortunately, for those of us in the market long enough, it's actually good news. For those of you not in the know, they are one of the largest limited partners ( LP's : investors in venture capital funds) in Europe and are basically in almost all the funds throughout the market. This for me is a no-brainer.

LP 82

LP Europe Germany Venture Capital 82

Steve Blank

JULY 15, 2010

The collapse of the IPO market and dysfunctional math in the venture capital community has stacked the odds against you. VC’s invested their limited partners’ “risk capital” in a portfolio of startups in exchange for illiquid stock. Startup lifecycle in an IPO Market. Here’s why. The Golden Age for Entrepreneurs and VC’s.

Venture Capital 297

Venture Capital IPO Liquidity Event Entrepreneur 297

The Startup Magazine

MARCH 22, 2019

An article in Forbes explains that a venture capital firm makes its money through management fees (a percentage of the amount of capital that they have under management) and carried interest (a percentage of the profits of the business). Small business loans and crowdfunding will also finance a start-up business.

Angel Investor 123

Angel Investor Venture Capital Accredited Investor Equity 123

Steve Blank

FEBRUARY 3, 2011

I’d known them for years, they were smart, trying to figure out the video game market with me, (in hindsight a business that none of us knew anything about and shouldn’t have been in ,) coached me when needed, etc. Their fiduciary responsibility was to manage a portfolio of investments for their limited partners.

San Francisco 331

San Francisco Silicon Valley Limited Partner Venture Capital 331

Both Sides of the Table

FEBRUARY 6, 2017

Yet as we enter February 2017 the VC funding markets are booming, Snap, Inc has filed for its IPO, AppDynamics was just purchased for $3.7 Chinese Foreign Direct Investment (FDI, excluding real estate) skyrocketed in 2016 as Chinese investors seek diversification out of their domestic markets. Baidu alone raised $3.2

Venture Capital 150

Venture Capital Saudi Arabia Kuwait Burn Rate 150

Both Sides of the Table

JANUARY 16, 2012

I’ve raised in boom markets and when everybody thought the Internet was a fraud. And I also now have to raise money myself, but this time from bigger institutions that our industry calls LPs (limited partners). You’re meeting people who can give you market insights and information. REAL information.

Developer 366

Developer Silicon Valley PR Las Vegas 366

Both Sides of the Table

OCTOBER 1, 2009

In my previous post, The VC Ice Age is Thawing (for now) I wrote about the reasons why the VC market came to a screeching halt in September 2008 and remained largely shut until at least April 2009. There are now signs the VC market has gathered pace meaning it’s a great time to be fund raising. This is one book-end of the cycle.

IPO 255

IPO Investment Bankers Venture Capital Marketing 255

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. Emotional Biases.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Both Sides of the Table

MAY 23, 2010

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. a loan) that is later converted to equity at the time of the next financing. Maybe the market views this as not worth the price you paid?

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

VC Cafe

MARCH 27, 2022

For the market to develop, new talent must come in to the space, and developers, designers, product managers etc, who are looking to enter this space must go through the ‘rabbit hole’ and face the steep learning curve. How to manage platform risk (Source: Startup Illustrated ). link] — jack??

Cofounder 179

Cofounder Venture Capital Equity 179

ithacaVC

FEBRUARY 23, 2012

Luckily, I am not in charge of the internal finance function at our fund. Most of my stomach turning results from the fact that this exercise is purely about unrealized return values of purely non-liquid assets (unless of course there is an active secondary market for the stock – this applies to a few handfuls of VC backed companies).

Valuation 49

Valuation Institutional Investors Marketing Down Round 49

David Teten

FEBRUARY 7, 2012

From the point of view of a limited partner, the great challenge is scaling the business. Our finance team acts as an outsourced CFO. If you calculate the dollars under management and divide by the number of Partners, they have one of the lowest ratios of any VC in the US with over $100m in assets.

Early Stage 148

Early Stage Private Equity Portfolio Aggregator 148

Growthink Blog

MAY 23, 2011

The typical wisdom regarding the appropriate financing course for a new company goes as follows: 1. This venture capital financing - usually between $3 and $10 million - is the first of a number of rounds of outside investment over a period of three to five years. There are a lot of dark, hard days.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Steve Blank

JUNE 1, 2011

While startups eventually get into execution mode, their initial stages are devoted to a non-linear, chaotic search for a business model: finding product/market fit to identify a product or service people will buy in droves at a sustainable, profitable pace. There are no standards for what each side (board versus management) does.

Silicon Valley 290

Silicon Valley Business Model Venture Capital Balance Sheet 290

Steve Blank

JUNE 1, 2011

While startups eventually get into execution mode, their initial stages are devoted to a non-linear, chaotic search for a business model: finding product/market fit to identify a product or service people will buy in droves at a sustainable, profitable pace. There are no standards for what each side (board versus management) does.

Silicon Valley 258

Silicon Valley Business Model Venture Capital Balance Sheet 258

David Teten

AUGUST 20, 2019

Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. Greater transparency to limited partners. Underaddressed market. Kim Folson, Co-Founder, Founders First Capital, observed, “RBI financing is more intimate than traditional equity.

Revenue 60

Revenue SBIC Cofounder Venture Capital 60

K9 Ventures

MAY 14, 2011

They are still individual investors, they invest on a full-time basis as professionals, but they have funds with Limited Partners. The limited partners may themselves run the gamut from individuals, family offices, venture capital funds to institutional LPs. They have 4-10 partners who are investing on their behalf.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

Babbling VC

NOVEMBER 4, 2011

Funds may have initially launched with a view of the market that changes. One partner may have a different appetite for risk in comparison to another. There may be differing opinions about how to manage a portfolio and so forth. My partners will continue to manage the second and third fund but have put off raising a new one.

Portfolio 70

Portfolio Limited Partner Early Stage Cofounder 70

Austin Startup

JULY 23, 2010

The company creates the leading software in an enterprise niche called pricing optimization and margin management. The company announced that is just completed $13M in financing from existing investors SMH Private Equity Group, ABS Ventures, Austin Ventures, and Trellis Partners. An item’s price is the price.

Balance Sheet 67

Balance Sheet Private Equity LP IPO 67

This is going to be BIG.

SEPTEMBER 19, 2012

million of limited partner commitments--a huge and exciting first step. Two Sigma is a technology and finance company in Soho filled with incredibly bright engineers and developers, so I’m really excited about leveraging that partnership in a number of cool ways.

LP 112

LP New York City New York Chad 112

Steve Blank

OCTOBER 29, 2009

Meanwhile on the West Coast – “The Group” 1950’s When Ampex was raising its money, in 1952, an employee of Fireman’s Fund in San Francisco, Reid Dennis , managed to put $20,000 in the deal. The limited partnership offered one way to structure an investment company. The fund would have limited life.

Silicon Valley 125

Silicon Valley SBIC San Francisco RSS 125

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

finance.fortune.cnn.com

AUGUST 21, 2012

Now Fortune has obtained more granular data, including returns for dotcom-era funds managed by such firms as Accel Partners, Benchmark Capital, General Catalyst Partners and Lightspeed Venture Partners. Through 12/31/11, less than 66% of the fund-of-funds called capital had been returned to limited partners.

Naming 49

Naming Term Sheet Private Equity Equity 49

ReadWriteStart

JUNE 13, 2011

While startups eventually get into execution mode, their initial stages are devoted to a non-linear, chaotic search for a business model: finding product/market fit to identify a product or service people will buy in droves at a sustainable, profitable pace. There are no standards for what each side (board versus management) does.

Silicon Valley 117

Silicon Valley Balance Sheet Metrics Early Stage 117

www.paulgraham.com

APRIL 28, 2010

My relationship with my cofounder went from just being friends to seeing each other all the time, fretting over the finances and cleaning up shit. Thats why fundraisingand the enterprise market kill and maim so many startups. [ It always comes down to your own product and approach to the market. And the startup was our baby.

Technical Cofounder 110

Technical Cofounder Startup Cofounder Founder 110

K9 Ventures

NOVEMBER 30, 2008

The birth of modern-day venture capital (not considering the European monarchs financing explorations and projects as venture capital) can be traced back to American Research and Development, which was started by Georges Doriot. In return for the operational role the GPs play, their firm receives a Management Fee.

IRR 48

IRR Venture Capital LP Early Stage 48

Professor VC

JANUARY 20, 2009

The latest statistics from VentureSource show 554 financings in Q4, down from 620 in Q3 and 718 in Q4 2007. On that front, I take pride in the second headline with news that Fliqz , where I am CFO, just closed on $6 million in Series C financing. Total amount raised fell from $7.5 billion to $5.5 billion quarter over quarter.

Venture Capital 28

Venture Capital Silicon Valley San Jose Bootstrapping 28

Professor VC

SEPTEMBER 24, 2009

Id break down into two separate pieces - financial analysis and business/market analysis. On the other side, you have Market Analysis (96%) followed by gut (67%). This brings up the age old question on whether you are investing in markets or teams. I also teach Entrepreneurial Finance at San Jose State.

San Jose 33

San Jose Angel Investor Venture Capital Mezzanine 33