Both Sides of the Table

OCTOBER 12, 2014

Prorata investments rights given investors the right to invest in your future fund-raising rounds and maintain their ownership % in your company as your company grows and raises more capital. For institutional money prorata rights are compulsory and usually non-negotiable. Why prorata rights used to be less of a big deal to angels.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

David Teten

SEPTEMBER 23, 2017

I’ve primarily seen quantitative analytic techniques used in origination , filtering , and in portfolio company recruiting , but technology can be used throughout the nine steps of the private company investing process: The 9 Steps of the Private Company Investing Process. 4) Manage deal flow. Talent Relationship Management tools (e.g.,

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Pascal's View

MARCH 10, 2010

Susan Mangiero , CEO of Investment Governance’s Fiduciary X , asked me the following: Question: Given recent instances of VC-backed company fraud and questions about the management team, how can institutional investors protect themselves from key person risk? Will they work 24/7 to get the job done?

Government 28

Government Technical Review Due Diligence Institutional Investors 28

Women Entrepreneurs Can

JUNE 11, 2021

Stock markets are a common platform where individual and institutional investors come together to buy and sell shares. With minimal risk and critical savings, you can start your portfolio investment. What Is Portfolio Investment? The power of taking risks and the time frame are the key elements determining the portfolio.

Stock 52

Stock Securities and Exchange Commission Portfolio Dividend 52

David Teten

DECEMBER 3, 2019

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. 1) Manage the firm . This is harder than it sounds.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Austin Startup

JUNE 14, 2017

So if you can get the nice benefits of having someone local, without many costs, going local is usually a good idea as long as you can find someone local who isn’t captive to local investor interests. There is no set of advisors for whom a founder/management team should care more about their independence than company counsel.

Silicon Valley 48

Silicon Valley Houston San Antonio Austin 48

The Startup Magazine

FEBRUARY 6, 2020

The buyers (or lessees) in these transactions are pension funds, insurance companies, or private equity representing other institutions. Investors seek returns of ~10-15% that are predictable, secure, uncorrelated to other asset classes, and inflation adjusted.

Private Equity 130

Private Equity New York City Chicago Investment Bankers 130

YoungUpstarts

FEBRUARY 13, 2017

Robo-advisors is an exciting new frontier for startups that want to use technology to provide financial advisory services to investors. Robo-advisors are simply wealth management programs that provide automated and personalized investment advice with minimal inputs from a human financial advisor.

Investment Bankers 113

Investment Bankers Marketing Startup Institutional Investors 113

David Teten

JANUARY 23, 2021

In particular, highlight the metrics by which you measured your past activities: size of exit, number of people you managed, $ budget you were responsible for, etc. We are using Digify to manage this. Institutional investors in funds are typically conservative. See How to Sell Your Professional Background.

Private Equity 78

Private Equity Venture Capital Technical Review Software Review 78

David Teten

JULY 12, 2017

When I meet with other VCs, family offices, and other institutional investors, the most common question I get is: “What are the highest-potential companies in your portfolio which are raising now?” If I can reduce a portfolio company’s time burden, I create value for them. Fundraising is burdensome.

Syndicate 60

Syndicate Syndication Institutional Investors LP 60

The Equity Kicker

FEBRUARY 9, 2016

The consensus is definitely negative, but one thing that has buoyed my optimism about the prospects for our portfolio is the number of new funds raised in London recently. He also surveyed 72 institutional investors in VC funds who said they think they will maintain their rate of commitments to new funds this year.

Marketing 60

Marketing Institutional Investors Venture Capital Later Stage 60

Hunter Walker

JUNE 21, 2014

Come B Rounds and beyond, the amount we’d need to contribute to maintain ownership would likely be too large to responsibly commit from a $35m fund because it would overweight the portfolio towards that one company.

Institutional Investors 91

Institutional Investors Dilution Later Stage Portfolio 91

Austin Startup

JANUARY 2, 2021

He was the first institutional investor in Facebook and also an early-stage investor in groundbreaking companies like Etsy, Spotify, C3.AI, Breyer Capital also has an impact investing arm and has eight portfolio companies based on the African continent. Why Jim Breyer? Jim Breyer has spent his career on the cutting edge.

Silicon Valley 100

Silicon Valley Austin Texas Raleigh 100

Both Sides of the Table

OCTOBER 1, 2009

But there are many zombie VC’s with no more investments left in their portfolios so it’s hard to know which trend has more impact. Sentiment is strong in personal portfolios and up commensurately with VC’s expectations that their last fund will now be worth something (and along with that increase the partners’ personal wealth).

IPO 255

IPO Investment Bankers Venture Capital Marketing 255

David Teten

APRIL 7, 2017

This is the debut of an annual series of summits focused on sovereign wealth funds, institutional investors, family offices, venture capitalists, and entrepreneurs interested in technology-driven entrepreneurship and with ties to the Middle East and North Africa (MENA) region.

New York 60

New York Africa Cofounder Egypt 60

Hunter Walker

MAY 18, 2015

Anne Dinneen: Nothing has contributed more to the growth of the Irvine endowment over the years than our venture portfolio. For an investor like Irvine, who can embrace the asset class’ illiquidity and long time horizon, venture has produced significant returns with less capital at risk.

LP 48

LP Portfolio Early Stage Institutional Investors 48

This is going to be BIG.

FEBRUARY 23, 2016

You've decided to spread that across Z funds and you hope your portfolio meets some threshold. You attend annual meetings and hop on investor calls as a means of oversight and to help you decide whether or not to invest in a future fund. If you're an individual, you've probably put in less money, so.

Limited Partner 60

Limited Partner Venture Capital Partner LP 60

David Teten

AUGUST 21, 2019

Requires regular monthly payments and careful cash management. Keith Harrington, Co-Founder & Managing Director at Novel Growth Partners, writes, “RBI may not work for a company with a super high growth trajectory, because the payments could be very large”. . RBI capital is normally treated as debt. But this isn’t really a problem.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

David Teten

SEPTEMBER 13, 2012

Adam Ghetti, founder of our portfolio company Social Fortress and an expert in security, publicly presented Social Fortress for the first time at this week’s TechCrunch Disrupt Conference. It brings password management and protection down to the device level, meaning you can only break my password if you were doing it from my device.

Institutional Investors 60

Institutional Investors New York Security Portfolio 60

Austin Startup

DECEMBER 6, 2010

million in Series A funding to develop management solutions that help secure open source software such as Linux, Apache, MySQL, PHP/Perl (LAMP), and accelerate enterprise adoption of public, private and hybrid cloud environments. Austin Ventures was the lead institutional investor, accompanied by a group of smaller individual investors. “By

SQL 59

SQL PHP Database Open Source 59

K9 Ventures

MAY 14, 2011

This in theory is very similar to the behavior of institutional investors, however, there is one big difference. Institutional investors make sizable investments in a company, so that when they do get a big hit that can make the whole fund. They have 4-10 partners who are investing on their behalf.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

David Teten

JANUARY 10, 2012

With a unique vision for starting and successfully managing innovative companies, he is the Managing Partner of Social Leverage, a holding company that invests in early stage web businesses. Mr. Lindzon continues to manage a hedge fund he started in 1998. He was an Institutional Investor ranked analyst for several years.

Technical Review 128

Technical Review Technology North Carolina Switzerland 128

ithacaVC

FEBRUARY 23, 2012

It is the time of year when VC firms do year end valuations for their portfolio company holdings. Yes, large institutional investors use the unrealized values and need them for reporting purposes. While not as bad as water boarding, this exercise always makes my stomach turn. I get that and understand it.

Valuation 49

Valuation Institutional Investors Marketing Down Round 49

David Teten

MARCH 24, 2014

My recent post on “ Asset Management is a Bizarre Industry Ripe for Disruption ” got one of the most interesting reactions I’ve received. We had an email conversation about the rationality, or lack of rationality, of professional investors. For Professional Institutional investors: agency risk is a huge problem.

Software Review 114

Software Review Due Diligence Venture Capital Portfolio 114

Both Sides of the Table

MAY 23, 2012

For starters we saw a huge influx of inexperienced managers enter the VC industry proving clearly that being a VC is not a purely quantitative job. IPO markets had burned an entire cycle of retail stock investors and many institutional investors to boot. Just why does over-funding dampen returns?

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Gust

MAY 24, 2012

Management control is further entrenched by other provisions including a “controlled company” designation , exempting the company from the customary stock exchange-imposed corporate governance rules that apply to the vast majority of public companies in the post-Sarbanes-Oxley era.

IPO 159

IPO Equity Common Stock Stock 159

Hunter Walker

SEPTEMBER 29, 2022

Starting a venture capital blog post with 1970s country music lyrics is pretty uncommon, but so is writing about when and why an investor might choose to sell equity before the company exits. Below I’ll share some of the principles we use at Homebrew , knowing that there’s not really a single ‘right’ answer for a fund manager.

Venture Capital 122

Venture Capital Cap Table LP Equity 122

David Teten

NOVEMBER 15, 2013

Since I became an institutional investor, my #1 learning is: this is a highly unusual and somewhat baffling industry. Asset management also shows the traditional earmarks of an industry ripe for disruption — most obviously, unhappy customers and extremely profitable incumbents.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

David Teten

FEBRUARY 3, 2014

We drew on our work with leading institutional investors and in-depth interviews with over 150 funds. Leading Late-Stage Technology Investors’ Portfolio by Geography, 2001-1Q2010. As data about public companies and private companies becomes increasingly searchable, investors can more sharply target their outreach.

Private Equity 114

Private Equity Venture Capital Technical Review Equity 114

View from Seed

OCTOBER 29, 2014

Some VC firms have eschewed taking direct investments from public pension funds, as state laws now sometimes require these pension funds to publicly disclose information about their investments that VCs consider sensitive, confidential info, like fund-level returns or individual companies in the portfolio. Endowments. new buildings, etc).

LP 335

LP Private Equity Institutional Investors Venture Capital 335

Agile VC

OCTOBER 29, 2014

Some VC firms have eschewed taking direct investments from public pension funds, as state laws now sometimes require these pension funds to publicly disclose information about their investments that VCs consider sensitive, confidential info, like fund-level returns or individual companies in the portfolio. Endowments. new buildings, etc).

Venture Capital 279

Venture Capital LP Private Equity Institutional Investors 279

Austin Startup

AUGUST 1, 2017

The binary “get yacht-level rich or die trying” mindset is driven, first and foremost, by large institutional investors. Success for institutional VCs is driven not by absolute dollars returned, but by % returns on capital. Understand the tension between “Portfolio” v. One Shot” incentives.

Liquidation Preference 48

Liquidation Preference Common Stock Valuation Silicon Valley 48

Austin Startup

APRIL 1, 2018

Although we can and should agree that cashews are better than almonds, the main point is that professional investors are competing each other away into riskier and riskier types of assets. Institutional investors can’t just not invest at all. I was recently asked at a conference how I thought about portfolio construction.

Institutional Investors 48

Institutional Investors LP Portfolio Valuation 48

David Teten

JULY 11, 2019

In practice, sometimes we cannot exercise these rights, as company management may ask us to make room for certain desired new investors. These are designed to allow an institutional investor to invest followon rounds in existing portfolio companies.

Syndicate 60

Syndicate Syndication Institutional Investors Dilution 60

David Teten

JANUARY 8, 2013

PEHub just posted this guest article: Can professional investors use social media? Historically, institutional investors kept their investing strategy and their activities very discreet. Investors can tap this network for executive talent, followon financings, and eventually an exit. Site traffic increased by 6.5%

Private Equity 114

Private Equity Social Media Equity Media 114

David Teten

MARCH 5, 2021

Research from BCG, Harvard Business Review, First Round Capital, the Kauffman Foundation, and Illuminate Ventures shows that investors in diverse teams get better returns: Paul Graham , cofounder of Y Combinator (2015): “Many suspect that venture capital firms are biased against female founders. However, there is still work to be done.

Cofounder 78

Cofounder Founder Technical Cofounder Technical Review 78

Austin Startup

JUNE 4, 2017

Recently I was fortunate enough to have raised a seed funding round from a fantastic group of investors for my pre-product, pre-revenue B2B SaaS startup here in Austin, Texas. million round in SaaS management tool Meta SaaS Raising the round was a full-time job for four months. Mark Cuban leads $1.5 Remember that.

Austin 54

Austin Institutional Investors Angel Groups Deal Flow 54