David Teten

JANUARY 19, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

This is going to be BIG.

FEBRUARY 23, 2016

Either way, VC funds aren't really built around creating much of an experience for their Limited Partners. Rather than see LP interactions as a chore or a burden, new fund managers should see this as an opportunity to extend the community around their fund. For smaller funds, I think this is a real mistake.

Limited Partner 60

Limited Partner Venture Capital Partner LP 60

David Teten

MARCH 14, 2018

Managers of VC funds typically want to grow their business aggressively, just like the founders we back. But, we normally have a clear ceiling on how high we can grow AUM, before hitting practical limits to deploying capital within the traditional VC model. . This evolves the VC from a server to a router.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

thebarefootvc

JULY 3, 2017

The stories outlined by a number of brave women in the NY Times last week recount investors using their power and position to proposition female founders. Just a week before, Justin Caldbeck, founder of Binary Capital , admitted to sexually harassing a number of women who were seeking investment from his fund.

LP 65

LP Technical Review Silicon Valley Limited Partner 65

View from Seed

DECEMBER 4, 2019

The trends described above in VC performance have an upstream effect on Limited Partners which is somewhat counter-intuitive. Most LPs are trying to manage some targeted asset allocation. And over time, if VC is performing well, the LP may actively manage up their allocation to venture. LP Constraints.

LP 256

LP IRR Distribution Portfolio 256

This is going to be BIG.

MAY 12, 2014

management fee. It''s only a little bit of a performance drag, though, because management fees act like a loan. You charge your limited partners this, but you have to pay it back before you start taking a cut of the profits. If you''re looking to make a lot of dough in the short term, microVC isn''t for you.

Investment Bankers 167

Investment Bankers Term Sheet Venture Capital Technical Review 167

David Teten

SEPTEMBER 23, 2017

PEVCTech is partnering with Blue Future Partners to run the first large-scale survey of VCs’ technology stack. Johann Kratzer of Blue Future Partners , a fund of funds, observed, “The majority of the hundreds of funds we’ve diligenced rely predominantly on their relationships to source deals. Greylock Partners.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

David Teten

AUGUST 19, 2019

RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Alternative Capital. “

Revenue 60

Revenue Technical Review Software Review Equity 60

Berkonomics

AUGUST 10, 2023

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. They tolerate you and your management when the numbers are a bit murky but with an explanation that is believable and correctable.

Liquidity Event 116

Liquidity Event Initial Public Offering Dividend Valuation 116

David Teten

JANUARY 9, 2018

A friend of mine interviewed for a job with massively successful hedge fund manager Steven A. a “Bitcoin Fund”, a “Social Media Fund”, a “Nanotech Fund”), you’re going to raise capital from Limited Partners who are very focused on Theme X. – Thoughtful fund management. The result is a poorly managed organization.

Venture Capital 60

Venture Capital Private Equity Silicon Valley Differentiation 60

David Teten

JANUARY 9, 2018

A friend of mine interviewed for a job with massively successful hedge fund manager Steven A. a “Bitcoin Fund”, a “Social Media Fund”, a “Nanotech Fund”), you’re going to raise capital from Limited Partners who are very focused on Theme X. – Thoughtful fund management. The result is a poorly managed organization.

Venture Capital 60

Venture Capital Private Equity Silicon Valley Differentiation 60

The Next Web

MARCH 8, 2014

Jason Lemkin is the Managing Director at Storm Ventures , a venture capital firm focusing on early-stage enterprise and IT companies, including MobileIron , Marketo and GuideSpark. From the standpoint of a founder, the life of a venture capitalist can seem very, very different. Until then, there are no profits to the VC partners.

Partner 138

Partner Burn Rate Early Stage IPO 138

Both Sides of the Table

FEBRUARY 25, 2019

Your role as a founder who brings on board members should be to understand the importance of the team dynamic and try to foster better human relationships so that in the future when you need people to work together for a common purpose a trust and rapport has been formed. The founders of a company are fighting.

LP 269

LP Startup Burn Rate Stock Options 269

Both Sides of the Table

OCTOBER 12, 2014

People all across the value chain have taken notice including Limited Partners who are the people who invest in VC funds in the first place. Have you noticed the increase of founders selling their personal stock in what is known as a “secondary?” Why prorata rights are now sought out by LPs. That seems fair.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

David Teten

JANUARY 11, 2020

They’re taking a $1m check from me, or giving $5m to me as a limited partner. We market to four populations: High-potential founders. Other coinvestors: Limited partners, other VCs who are coinvestors, private equity funds which are potential growth-stage investors, etc. I welcome suggestions.

Social Media 60

Social Media Technical Review Media Private Equity 60

David Teten

JULY 25, 2017

We have lower AUM, therefore lower management fees. We think coaching is a key lever for doing this, with our own team or through outside partners. If you know someone offering these services today, and/or are interested in partnering with us to deliver them, please contact me. . I’ve listed a few ideas below.

Portfolio 60

Portfolio Technical Review Private Equity Database 60

BeyondVC

JANUARY 5, 2022

We are truly to our founders, limited partners, co-investors, and friends for another year of growth and learning. boldstart kicked off 2021 by announcing the closing of $230M of funds, $155M fund V and $75M opportunities ii, to continue supporting developer first & SaaS founders from Day 1 to scale( ).

Stealth 78

Stealth Cofounder SQL Open Source 78

ithacaVC

DECEMBER 22, 2012

I recently engaged in a conversation (over a few days) about the need for a seed stage company to have a board member other than the founder. For clarity, a company with one founder can have a one member board (assuming a corporation). The decision to have an investor on the board is really one for the founder.

Seed Stage 82

Seed Stage Preferred Stock Founder Angel Investor 82

The Startup Magazine

MARCH 22, 2019

Investment firms are staffed with analysts, partners, and others to ensure deals are soundly vetted. 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).

Angel Investor 123

Angel Investor Venture Capital Accredited Investor Equity 123

This is going to be BIG.

SEPTEMBER 19, 2018

Still, these kinds of positions do open up occasionally—opportunities to lead new business units as General Managers, Heads of Business Development, COO’s, etc. Accomplishing that means understanding how the key stakeholders, like founders and investors, spend their time.

Startup 191

Startup Cofounder Angel Groups Limited Partner 191

David Teten

JANUARY 23, 2021

I’ve been fortunate to be a Partner at two different VC firms over the past 9 years, and we’ve grown AUM 10X both times. Build the firm as much as possible before you solicit limited partners. . The next best move is to build your core team, e.g., recruit an Advisory Board, Venture Partners, and EIRs.

Private Equity 78

Private Equity Venture Capital Technical Review Software Review 78

Both Sides of the Table

NOVEMBER 9, 2014

We all can intuit the benefits to founders of these trends so there’s little reason to elaborate. How founders get screwed on convertible notes. We all know that funding markets have changed for startups. The trends are well understood: more angels, more seed funds, more crowdsourcing and so forth.

SEC 352

SEC Venture Capital Early Stage Cofounder 352

David Teten

SEPTEMBER 6, 2015

She had so much insight to share that we broke the interview into two parts, 1) Corporate Venture Capital and more broadly, 2) How the Fortune 500 Can Buy, Invest and Partner with the Innovation Economy (coming soon). . Previously she was Co-Founder and CEO of SNAZZ, a cloud-based event management platform.

Venture Capital 60

Venture Capital Balance Sheet Technical Review Portfolio 60

David Teten

FEBRUARY 25, 2013

Keynote Speakers are Andrea Bonomi (Chairman of Investindustrial), Mark Dzialga (Managing Director and Chairman of the Investment Committee at General Atlantic) & me.

Private Equity 114

Private Equity Equity Leveraged Buyout South America 114

www.xconomy.com

JUNE 9, 2012

Sakti3 Founder Sastry to Step Down From U-M. Co-Founder and CEO, Wetpaint. Managing Director, Enterprise Partners. Founder, DEKA Research and Development Corporation. He tells me the firm has made 21 investments since mid-2010, and Correlation now has more than $165 million under management. New York ›.

San Diego 40

San Diego Venture Capital Technical Review San Francisco 40

Steve Blank

JULY 15, 2010

VC’s invested their limited partners’ “risk capital” in a portfolio of startups in exchange for illiquid stock. This changed their interest from managing your board for their liquidity to managing the board for all shareholders. They’ve created virtual IPO’s for founders and employees via late-stage private financing.

Venture Capital 299

Venture Capital IPO Liquidity Event Entrepreneur 299

Haystack

JULY 3, 2019

Earlier this year, I reflected on the difference between “fund investing” vs “fund management.” ” It’s a useful post for emerging managers, I’d recommend reading it. I should be clear, not everyone who manages capital needs to build a firm in the traditional way — I do not, for instance.

Chad 106

Chad Cofounder Angel Groups Limited Partner 106

David Teten

JULY 12, 2017

First, a formal definition: According to Capital Dynamics , “Co-investments are direct investments in a company made alongside and on the same terms as a lead [General Partner]. We see our potential coinvestors in four primary buckets: 1) HOF Capital ’s own limited partners. 2) Investors with very specific value-add.

Syndicate 60

Syndicate Syndication Institutional Investors LP 60

Berkonomics

JUNE 15, 2017

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. They tolerate you and your management when the numbers are a bit murky but with an explanation that is believable and correctable.

Liquidity Event 97

Liquidity Event Initial Public Offering Dividend Valuation 97

Mucker Lab

MARCH 8, 2016

In reality, we are scrappy founders, just like the entrepreneurs we serve. Just as entrepreneurs should aspire to raise capital from value-added, “smart money” investors, we, too, have focused on partnering with committed, long-term, institutional limited partners (LPs). We’ve ridden the ups and downs of economic cycles.

Burn Rate 60

Burn Rate Limited Partner Bootstrapping Portfolio 60

Agile VC

JULY 19, 2012

This is true not only in a firm’s dealings with entrepreneurs but also with it’s limited partners and even within the firm among its partners. For example FRC launched a founders equity exchange fund and various programmatic forms of knowledge sharing like list serves, CEO summits, conferences, etc.

Cofounder 193

Cofounder Limited Partner Early Stage LP 193

Pascal's View

MARCH 8, 2010

It’s that time of the year again– time to send out audited financial statements and K-1’s to your limited partners– which means it’s also a great time to address some of the common questions that investors raise about VC partnership governance and disclosure issues. entitled to receive from a VC fund?

Limited Partner 28

Limited Partner Government Delaware LP 28

David Teten

DECEMBER 3, 2019

But in business, you want a lot of partners. However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and. 2) Market .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Agile VC

DECEMBER 19, 2013

As a VC investing not only personal capital, but on behalf of limited partners, one can’t take this strategy. This can include learning more about technologies, markets, and people that may be impactful to the angel’s other endeavors. ” But as an angel one can overweight this factor. .”

Angel Investor 265

Angel Investor Early Stage Syndicate Syndication 265

Steve Blank

JUNE 1, 2011

Investors get board seats to assure themselves and their limited partners that they are duly informed about their investment. A veteran board can bring 50-100x more experience into a board meeting than a first time founder. From a founder’s point of view there are three reasons for board meetings. Wastes Founders Time.

Silicon Valley 292

Silicon Valley Business Model Venture Capital Balance Sheet 292

Austin Startup

MARCH 7, 2021

It seems like every day there is a new headline about an exceptional startup founder, investor, or corporate headquarters moving to Texas. These are all potential customers and strategic partners for startups. Startups and investors should treat Texas like one big city. Joe Lonsdale. Drew Houston. Jim Breyer. Charles Schwab.

Texas 90

Texas San Antonio Houston Dallas 90

K9 Ventures

AUGUST 14, 2017

The small and concentrated portfolio means that K9’s interests are always well aligned with the interests of founders who choose to work with us. I’m grateful to have had the opportunity to work with some absolutely amazing founders in the K9 portfolio and look forward to the many more amazing founders that K9 will get to partner with.

Technology 96

Technology LP San Francisco Portfolio 96