Both Sides of the Table

MAY 23, 2012

Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. Thomson Reuters data shows that around $10 billion of LP money went into VCs per year pre bubble. By 2000 the total LP commitments had mushroomed to more than $100 billion.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Both Sides of the Table

OCTOBER 12, 2014

It’s why I often advise angel investors to be careful about assuming that being an angel investor is a profitable exercise unless you have the ability to have a wide-enough portfolio to have a few companies doing extraordinarily well plus deep enough pockets to follow your winners. Thus begins the dance.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

David Teten

MARCH 14, 2018

First Round Capital’s forum for portfolio executives is a powerful example of a scaleable resource. Another example is Correlation Ventures ($300M+ AUM), a VC firm which co-invests in financings with at least one other new outside VC. – Provide hands-on operational support for portfolio companies.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Both Sides of the Table

JULY 23, 2014

At the other end of the spectrum large funds have gotten even larger in the past few years which has massively increased the amount of consolidation in our industry as 66% of LP money into venture is now concentrated in late-stage or full-cycle VCs. The “big boom” in startup financing started around March 2009?—?more Why is this?

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Both Sides of the Table

MAY 24, 2021

Since funds were driven by extreme successes in their portfolios where just one deal could return 5x the entire fund while 95% of the fund may have done well but not amazing, not missing out on deals was critical. This “overnight success” was first financed in 2004. It literally drove FOMO. The virtue of going long.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

David Teten

JANUARY 21, 2021

VI: Revenue-based financing: The next step for private equity and early-stage investment. This is a summary of: Revenue-Based financing: State of the Industry 2020. With a portfolio that includes food, tech, and services, the fund is industry-agnostic and focused on the overlooked and underrepresented with high-margin business models.

Equity 78

Equity Revenue Cofounder Colorado 78

YoungUpstarts

OCTOBER 23, 2017

by Joe Duncan, founder of Duncan Capital LP. PC and mobile interfaces dynamically display portfolio valuations and exposures, along with system-generated investment recommendations tailored to a specific client’s financial goals and risk appetite. At least for investment banks the answer is not so clear cut. Underwriting.

Technical Review 108

Technical Review Artificial Inteligence Software Review IPO 108

Haystack

JULY 20, 2018

This is a post I’ve wanted to write for a long time, but I needed the time to digest all the other great posts on the topics by other investors, and to analyze specific portfolio data from Haystack over the last five years. Haystack Portfolio Data. Well, that time has finally come. These questions have been rattling around my brain.

San Francisco 116

San Francisco Silicon Valley Seattle Venture Capital 116

This is going to be BIG.

DECEMBER 3, 2020

Having a better overall portfolio of venture capital by adding funds into the mix. By being in a pool of other fund investors, the LP meetings and co-investment calls could be an opportunity to connect with other like-minded or like-situationed investors—but again, it depends on how a fund organizes its community.

Portfolio 134

Portfolio Syndicate Syndication Deal Flow 134

David Teten

NOVEMBER 23, 2020

I highlight endogenous social impact because many of my portfolio companies might give money to charity or provide low-cost pricing to nonprofits, but that’s not what I think of as an impact company; they’re tacking on social impact on top of their core business, whatever that is. . . Goldman Sachs bought Clarity for ~$100m. . Who hasn’t?

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60

David Teten

MARCH 18, 2021

Investment theses are just hypotheses; the portfolio shows how accurate the hypothesis was. Revenue-Based Finance and Flexible VC investors invest using “alternative VC” structures, as opposed to conventional preferred equity and convertible notes. It incorporates influences from the LP and, more and more, from the founders.

Technical Review 78

Technical Review Cofounder Venture Capital B2B 78

Both Sides of the Table

MAY 27, 2013

In this period (less than 2 years) he has brought on incredibly talented senior execs is sales, marketing, product management, client services, finance, vp engineering and more. VCs crave the ability to help portfolio companies. Growth like this, this early in a company’s lifecycle rarely happens.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

Babbling VC

OCTOBER 3, 2011

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. Hypothesis 3: Insufficient diversification in European VC managers’ portfolios .

LP 82

LP Europe Germany Venture Capital 82

Austin Startup

AUGUST 10, 2017

Although we were studying finance, we were always more interested in tech. Before graduating, I decided to forgo the finance path and instead dove into engineering and later sales and product management roles at VersaSuite (health IT) in Austin. But we never lost the finance bug. We were infatuated with tech.

Technical Review 48

Technical Review Cofounder Technical Cofounder Austin 48

Hunter Walker

APRIL 27, 2014

Last week we held our first annual LP meeting, when venture funds get their investors together with updates on operations and results. Community : Building out Homebrew WW HQ in SF which at any time houses a couple of portfolio companies and founders pre-funding. We make available coworking space for free.

LP 97

LP Cofounder Term Sheet Valuation 97

Hunter Walker

SEPTEMBER 29, 2022

Most of this discussion is about ‘playing offense’ — working towards being a good steward of LP capital and the risk/reward associated with VC. Then we combined this with observed data from the behavior by coinvestors in our own portfolio. Not surprisingly there was no specific consensus. And so next we codified our own ruleset.

Venture Capital 122

Venture Capital Cap Table LP Equity 122

Both Sides of the Table

JANUARY 5, 2010

If your idea is so amazing that it warrants my hard-earned angel money or the money of my LP investors from our fund then why should I take a risk on you if you won’t take a risk on yourself? VCs don’t have the same net worth litmus test and great entrepreneurs have a ton of sources for seed money to get financed very early.

Entrepreneur 293

Entrepreneur CTO Hire Salary South America 293

Both Sides of the Table

AUGUST 24, 2015

When many venture investors are seeing their personal public portfolios tank it creeps into their business lives and creates an emotion that is less risk tolerant whether they’re aware of it or not. It will make follow-on financings much harder and people will have to consider whether or not to do inside rounds.

Stock 150

Stock Finance Marketing Valuation 150

David Teten

JANUARY 19, 2021

Seed-stage compatible: Like traditional equity VC investors, Flexible VCs accomodate early-stage investment risk within their portfolios better than a traditional RBI funder. Further reading: The Evolution of Entrepreneurial Finance: A New Typology. See Why Are Revenue-Based Investors Investing in Women & Diverse Entrepreneurs?

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Haystack

JUNE 1, 2018

Perhaps because of this success and the unique elbow grease they supply to their portfolio, it was shocking to many to see that one of the storied seed franchises would contract, become its own sole LP, and scale back its operations. There is a tremendous amount of money and new deals and financings.

LP 116

LP Global Social Media Portfolio 116

Both Sides of the Table

FEBRUARY 4, 2016

” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. They point to some widely known facts: financings & valuations are up massively over the past 7 years and non-VC money has entered the system.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

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

Agile VC

DECEMBER 6, 2012

Unlike a startup that might raise equity financing across several rounds all combined in a single balance sheet, VC’s do not simply commingle these funds into a single bucket to be allocated across all the companies in that firm’s portfolio. Or public policy changes may force GPs or LPs to end longstanding relationships.

LP 178

LP Balance Sheet Differentiation Limited Partner 178

Both Sides of the Table

MAY 27, 2016

I was speaking recently to the team at NuOrder , an LA-based company we’re an investor in about “realism in startups” — an impromptu talk I have given to any of our portfolio companies who ask. I was asked again in an LP meeting later in the week and then again at a founder breakfast gathering we hosted yesterday.

Early Stage 254

Early Stage Non-Compete LP Later Stage 254

VC Adventure

MAY 5, 2022

In markets like this, funds that deploy quickly generate markups on their full portfolio; those that show more patience suffer from an IRR perspective as a larger portion of their fund is yet to be marked up by subsequent financing rounds. Traditionally LPs have viewed this as positive. management fee).

IRR 116

IRR Metrics Valuation LP 116

The Equity Kicker

JULY 8, 2019

Then from the mid 2000s, value add began moving beyond the partner to the firm as VCs began employing people who’s full time job was helping their portfolio. The most common strategies are to provide networking services and content to portfolio leaders so they can be more effective in their jobs. . Building platforms.

Portfolio 84

Portfolio LP Venture Capital Partner 84

VC Adventure

AUGUST 13, 2014

The data I site below is from Foundry LP StepStone. And more importantly the data were financing level, not company level. This analysis is on a company basis, not a financing basis (the chart is labeled “Deal” but in this case that means company, not round). Quick update here.

LP 99

LP Portfolio Distribution Finance 99

Hunter Walker

APRIL 24, 2017

What outsiders don’t realize is that much of the most intriguing seed startups go through a financing process that’s “dark” – not seen by most investors because it’s either competitively privileged to a few firms or so against traditional patterns that the walk is more random.

Cap Table 71

Cap Table LP Seed Stage Vertical 71

Both Sides of the Table

JANUARY 16, 2012

But the short answer is that the best intro is from a portfolio company of that VC or by other entrepreneurs whom that VC respects. You need to build genuine relationships with these portfolio startup founders as well as trust with them and the rest will follow. I wrote a longer post on how to access VCs that you should read.

Developer 366

Developer Silicon Valley PR Las Vegas 366

YoungUpstarts

NOVEMBER 18, 2018

Other ways that patents can be added to your financial portfolio is through acquisitions – in plain English, buying up other people’s patents. This is typically a way of adding additional intellectual property to a patent portfolio (collection of multiple patents). and Alarmforce LP, SkyBell Technologies, In August Home Inc.,

Intellectual Property 127

Intellectual Property Forecast LLC Acquisition 127

Agile VC

NOVEMBER 13, 2012

At Risk – Usually starts with a firm beginning to see challenges in large portions of its portfolio, or in keeping the partnership together, or in the viability of the firm’s core strategy as broader markets start to shift (e.g. Well first it’s worth understanding the distinct phases of exactly how a VC firm dies.

LP 154

LP Portfolio Venture Capital IRR 154

This is going to be BIG.

MARCH 3, 2019

It’s just a model of the share price of a company going up and to the right smoothly until it exits for $300mm, and the outcomes for the shares purchased in each round of financing. Throw in a couple more solid returners, a few singles and doubles, and you’ve paid for the fact that half your portfolio was a complete wipeout.

Portfolio 110

Portfolio Burn Rate LP Distribution 110

VC Adventure

AUGUST 13, 2014

The data I site below is from Foundry LP StepStone. And more importantly the data were financing level, not company level. This analysis is on a company basis, not a financing basis (the chart is labeled “Deal” but in this case that means company, not round). Quick update here.

LP 60

LP Distribution Portfolio Finance 60

Both Sides of the Table

MARCH 30, 2016

They either had a portfolio company in market and weren’t getting offers as quickly as expected or they knew a friend in the biz who was recounting this to them in a session VCs strangely call “comparing notes.”. Great companies get financed.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

David Teten

AUGUST 21, 2019

Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. A company with that mindset is dramatically less risky, because it’s not dependent on the financing markets for continued viability. Most founders who are raising capital look first to traditional equity VCs.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Professor VC

DECEMBER 8, 2015

Often times those involve trading within a venture capital portfolio or between two venture firms portfolios. Luckily, Google was one of the 150 and did ultimately return the fund assuming the LP was smart enough to hold the stock after distribution. Like CPF, Kilowatt also provides solar financing services to consumers.

Merger 28

Merger LP IPO Redemption 28

Babbling VC

APRIL 22, 2013

I''ve been watching in amusement some recent financings and realized the getting has never been so good when it comes to venture capital. If they don''t get a homerun in the portfolio fast, their fund has no chance of ever raising additional money or even returning money to their LP''s. Again, your chance to squeeze into a deal.

LP 76

LP Venture Capital Portfolio Finance 76