VC Cafe

APRIL 29, 2020

Source: NVCA , “Startup Ecosystem Faces Capital Crunch over Coming Months” USA – SBA Loans and PPP. Several European countries started announcing ‘Exit Plans’ from the current lockdowns. But as the world is starting to flatten the curves, the economic impact is just beginning.

SBA 124

SBA Technical Review Startup 124

Ben's Blog

MAY 24, 2021

. “…thank you very much for the opportunity to submit written testimony regarding capital formation and the state of the U.S. IPO market. billion multi-stage venture capital firm focused on IT-related investments… I also serve on various investment committees, including for the St.

SEC 36

SEC Accredited Investor IPO Technical Review 36

Both Sides of the Table

OCTOBER 12, 2014

They often create the biggest tensions between investors who are investing at different stages in the business. These tensions seep out in some angels or seed funds publicly or semi-privately deriding later-stage VCs for their “bad” behavior. I have seen bad behavior from later-stage VCs, believe me.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

VC Cafe

JANUARY 24, 2012

In 2011, Israeli venture capital funds invested $525 million in Israeli companies, an increase of 42% from 2010, and a rise of 28% from 2009 levels. Mid and later stage companies attracted $1.48 A decade ago, such companies would most likely have gone the IPO route, raising funds publicly.

Technical Review 111

Technical Review IPO Seed Stage 111

thebarefootvc

JANUARY 27, 2014

I think that later stage valuations are frothy (for reasons I explain below) while earlier stage valuations are starting to stabilize from previous highs (with the exception of the superstar serial entrepreneur) - turns out scaling in a sea of competition (both startup and entrenched) is not so easy. Or so it seems.

Technical Review 63

Technical Review Valuation Venture Capital Investment Bankers 63

Steve Blank

APRIL 23, 2014

In response, venture capital firms like Sequoia and Andreessen/Horowitz are hiring new partners just to work with their portfolio companies and match them to corporations. VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

VC Cafe

JANUARY 2, 2023

The ten biggest exits of the year included a mix of IPOs and acquisitions. As a result, I expect to see slower pace of investing across stages. Lower valuations , especially in later stage. The case for US venture capital outperformance ( source ). Total deal value this year was $16.9 ” Fred Wilson.

Valuation 158

Valuation Down Round Venture Capital 158

Both Sides of the Table

APRIL 2, 2010

This is part of my series on Understanding Venture Capital. In an early stage deal that fund might reserve 2x their initial investment or if it’s a larger round or later stage they might reserve 1x. Tags: Pitching VCs Raising Venture Capital VC Industry. Why does vintage matter to you?

Venture Capital 269

Venture Capital Balance Sheet Early Stage Software Review 269

VC Cafe

JANUARY 24, 2012

In 2011, Israeli venture capital funds invested $525 million in Israeli companies, an increase of 42% from 2010, and a rise of 28% from 2009 levels. Mid and later stage companies attracted $1.48 A decade ago, such companies would most likely have gone the IPO route, raising funds publicly.

Technical Review 60

Technical Review IPO Seed Stage 60

Austin Startup

JUNE 27, 2017

Austin-Based Venture Capital Firms There are a eleven venture capital firms based in Austin that are actively investing today, six of which are first funds. VC Firms Actively investing in Austin Companies Finally, there are a group of venture capital firms that are not based in Austin that are active investors here.

Venture Capital 54

Venture Capital Austin Texas Private Equity 54

Both Sides of the Table

JUNE 5, 2011

The earlier you invest the higher the chances the company won’t work out and thus you pay a lower price than later-stage investors. Then you can do a little bit of research and find out that very few companies ever achieve this valuation in a trade sale so you’re clearly gunning for an IPO.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Both Sides of the Table

MAY 24, 2021

But markets have changed and I think investors, founders and experienced executives who want to join later-stage startups can all benefit from playing the long game. The abundance of late-stage capital is good for us all. It literally drove FOMO. My first ever investment as a VC was Invoca.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Up and Running

JUNE 22, 2010

Audrey Watters posted “Is Venture Capital Broken?&# The title is direct reference to an essay, titled “Venture Capital is Broken&# , which angel investor Chris Sacca released as the “creed&# of his new investment firm, Lowercase Capital. this weekend on ReadWriteWeb’s startup channel.

Venture Capital 61

Venture Capital Merger Angel Investor Later Stage 61

Steve Blank

JUNE 15, 2011

Today, the signs of the new bubble are the Linked-In initial public offering (IPO), Facebook’s stratospheric valuation and the rapid rise of early-stage startup valuation. The awareness phase is where other later-stage investors start to notice the momentum, bringing additional money in and pushing prices higher.

Silicon Valley 327

Silicon Valley Stealth Valuation Mississippi 327

Both Sides of the Table

AUGUST 25, 2015

Last night I wrote a post about how the fall in the stock market over a 3-day period may affect the venture capital markets. Let me give you the quick summary of what I said yesterday: Public markets affect venture funding. public stocks go up and privates can grow into IPOs; or. So now what?

Balance Sheet 150

Balance Sheet Valuation Burn Rate Stock 150

Startup Professionals Musings

FEBRUARY 5, 2012

You also will find that the stage your startup is in dictates where you go to seek funding. Funding sources specialize in certain growth stages. Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. Funding or rollout stage.

Investment Bankers 241

Investment Bankers Venture Capital Startup Initial Public Offering 241

This is going to be BIG.

FEBRUARY 21, 2021

Or that venture capital is a meritocracy? This doesn’t take into consideration, however, that venture capital is a financial product—a product that works for some people and doesn’t work for others. We know what the racial and gender wealth disparity looks like: This is a lesson taught to be by Jewel from Collab Capital.

Venture Capital 162

Venture Capital Cofounder Deal Flow Later Stage 162

Startup Professionals Musings

OCTOBER 13, 2010

You also will find that the stage your startup is in dictates where you go to seek funding. Funding sources specialize in certain growth stages. Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. Funding or rollout stage.

Investment Bankers 231

Investment Bankers Venture Capital Startup Initial Public Offering 231

YoungUpstarts

JANUARY 22, 2017

Later-stage companies are in operating mode. Pamela Springer, CEO of ORIS Intelligence is a veteran executive with more than 20 years’ experience growing tech-based companies, including re-starts and IPOs, including building Manta Media into one of the largest, most trafficked websites in the US.

Private Equity 113

Private Equity Later Stage IPO Early Stage 113

Gust

NOVEMBER 22, 2011

You also will find that the stage your startup is in dictates where you go to seek funding. Funding sources specialize in certain growth stages. Angel investors typically provide early-stage funding, while venture capital firms typically come in at later stages. Funding or rollout stage.

Venture Capital 171

Venture Capital Investment Bankers Angel Investor Initial Public Offering 171

Austin Startup

AUGUST 30, 2018

Of these rounds, nearly every one was classified as a Series B or later-stage round, with the exception of a few debt and equity financing rounds. A trend towards larger, later-stage companies typically means investors are looking to take on less risk and invest in more established companies.

Austin 48

Austin Early Stage San Francisco Later Stage 48

philipsmith.typepad.com

SEPTEMBER 24, 2011

While there have been times in the last dozen or so years, usually during times of venture capital excess, that cash to founders, early-stage executives and other key employees has matched regular market compensation (still with the upside of the equity), this is not true in the vast majority in the start-up game. Predictions.

Silicon Valley 40

Silicon Valley Equity Technical Review Recapitalization 40

VC Adventure

FEBRUARY 13, 2018

Venture is being increasingly driven by large rounds (especially at the later stages – this is significantly skewing the overall funding numbers that are being reported). IPOs are the new Unicorns (they’re becoming more scarce than their $1BN valued cousins).

Later Stage 54

Later Stage Marketing IPO Venture Capital 54

VC Cafe

JULY 12, 2011

The recent wave of Internet IPOs seems to remind the Israeli VCs of the previous tech bubble. After Israel experienced one of its worst years in 2010 in terms of venture capital fund raising, surveyed participants project a continuation of cautious optimism regarding future fundraising activities. Signs of gloom ahead.

Internet 84

Internet Venture Capital IPO 84

Duct Tape Marketing

JULY 27, 2023

And I think fortunately these days there are more opportunities to, to sell down along the way as companies get big enough later stage investors will come in and offer to buy a small chunk of earlier investors. Like when, when Slack IPOed, I went down to Wall Street and saw the banner up there and it was kind of cool.

Cofounder 56

Cofounder Artificial Inteligence New Zealand Analytics 56

K9 Ventures

OCTOBER 10, 2017

You see, Dan knows more about venture than most people; and if Dan isn’t aware that “pre-seed is a thing,” then I haven’t done a good enough job of explaining to the world what I and K9 do! I’ve talked about this before in The Curse of Over Capitalization. Q: How are most Pre-Seed deals structured?

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Hunter Walker

APRIL 6, 2015

Charlie: Who are the three most underrated investors in venture capital? Hunter: “Most underrated” is tough to answer so I’m going to answer slightly differently: here are three investors at different stages who I think are great and don’t seek out press or brag as much as some of us do. So let’s say we did $1m of that round.

Seed Stage 48

Seed Stage Later Stage Venture Capital Valuation 48

Both Sides of the Table

NOVEMBER 18, 2012

Maybe I need to do slightly later stage.” Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. Tell the press how great you are and hope that they aren’t publishing your obituary 9 months later rendering you a fool.

Monaco 420

Monaco Cofounder Chicago Mexico 420

K9 Ventures

OCTOBER 12, 2015

I define #PeakVC as the point in time when the maximum amount of $$s are entering the Venture Capital industry. That is because the venture capital industry operates in cycles. That increases the overall money supply coming in to venture. It doesn’t matter whether you believe in the Peak Oil theory or not.

Venture Capital 48

Venture Capital Seed Stage LP Valuation 48

This is going to be BIG.

MARCH 30, 2015

Because most internet business concepts were not capable of productively employing tens of millions of dollars of venture capital does not mean they were bad ideas." With growth rates reduced, IPOs would be even tougher to come by--but companies would survive. It would still make for a huge return to the early investors.

Hockey Stick 60

Hockey Stick Valuation Startup Maryland 60

Austin Startup

MARCH 7, 2021

in the last four years we’ve seen a 250% increase in venture capital funding and have doubled the number of startup development organizations in our community.” It is the tech hub of Texas and has the most local venture capital and attracts the most venture capital. Austin Ventures.

Texas 90

Texas San Antonio Houston Dallas 90

Professor VC

DECEMBER 8, 2015

Often times those involve trading within a venture capital portfolio or between two venture firms portfolios. But what about the case where both companies are well capitalized and doing well? Obviously, Musk and Thiel both did fine off the eventual Paypal IPO (and even better subsequently with Facebook and Tesla).

Merger 28

Merger LP IPO Redemption 28

Hippoland

NOVEMBER 13, 2016

The #1 problem with the venture capital game, in general, is that *actual success* is measured over decades not years. So while I’m waiting for my portfolio companies to either die or go IPO, what am I looking at as indicators of success / failure? But I should have thought about it. This is necessary but far from perfect.

IRR 48

IRR Valuation Portfolio Due Diligence 48

Feld Thoughts

SEPTEMBER 9, 2015

Some will demonstrate strategically justifiable metrics and have fantastic ‘up round’ exits; others may see liquidation preferences kick in which will negatively impact founders and employees; others may fulfill the adage “IPO is the new down round” , which has been the case for more than half of the public companies on our list.

Liquidation Preference 70

Liquidation Preference Burn Rate Balance Sheet .Net 70

Gust

OCTOBER 2, 2014

Maybe I need to do slightly later stage.”. Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. Tell the press how great you are and hope that they aren’t publishing your obituary 9 months later rendering you a fool.

Monaco 122

Monaco Cofounder Chicago Mexico 122

www.paulgraham.com

APRIL 28, 2010

In an IPO, it might not merely addexpense, but change the outcome. Those remedial actions can delay, stall or even kill the IPO. Of course the odds of any given startup doing an IPO are small.But not as small as they might seem. Angels and even VC firms occasionally do this, but they alsoinvest at later stages.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

abovethecrowd.com

APRIL 20, 2016

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. About this same point in time, the journalists that focus specifically on the venture capital industry noted something quite profound.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40