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What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

Consumers pulled their money out of these risky investments, but when LPs make commitments to VC funds they make 10-year, legally binding commitments. So as of 2008 total LP commitments were still at nearly $250 billion. I was at dinner with a large LP and mentioned that I had heard the industry would shrink by 50%.

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Kindred Spirits – Our Investment In Founder Collective

Feld Thoughts

We also know many of the entrepreneurs in their portfolio. From those founders, we are aware that FC takes their mission “to be the most aligned fund to founders at the seed stage” very seriously. In general, these investments were rarely competitive at the time of their first financing.

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The Changing Structure of the VC Industry

Both Sides of the Table

The rise of “micro VCs” or seed-stage funds. 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. Why is this?

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The Authoritative Guide to Prorata Rights

Both Sides of the Table

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.

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Investing Outside The Bay Area

Haystack

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.

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Does Your VC have an Investment Thesis, or a Hypothesis?

David Teten

Investment theses are just hypotheses; the portfolio shows how accurate the hypothesis was. For example, Point Nine Capital focuses on B2B SaaS and marketplaces at the seed stage, across many industries. Investment theses are just hypotheses; the portfolio shows how accurate the hypothesis was. 3) Geography-defined funds.

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When Bad News Is Actually Good News

Babbling VC

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 .

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