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The Changing Structure of the VC Industry

Both Sides of the Table

Limited Partners or LPs (the people who invest into VC funds) have taken notice as 2014 is by all accounts the busiest year for LPs since the Great Recession began. The “big boom” in startup financing started around March 2009?—?more and the bigger funds can’t get in directly. more than 5 years ago?—?and and hasn’t abated.

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How is the VC Asset Class Doing?

View from Seed

At the same time, despite some realizations in recent years through M&A, PE acquisitions, and IPOs, the general sense I get from LPs is that the level of distributions don’t quite line up with the unrealized performance. Most LPs are trying to manage some targeted asset allocation. LP Constraints. So, how good is an outlier fund?

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What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking

Steve Blank

There are many reasons to found a startup. There are many reasons to work at a startup. To most founders a startup is not a job, but a calling. But startups require money upfront for product development and later to scale. Traditional lenders (banks) think that startups are too risky for a traditional bank loan.

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A Deep Dive into What Has Really Changed in Venture Capital

Both Sides of the Table

Yes, VC / Startup Funding is up Massively If you look at how much VC firms have raised from Limited Partners (LPs) over the past 2 decades you’ll see that we’ve returned to a level that we haven’t seen since 1999. Companies are raising billions of dollars in the private markets and the valuations are enormous PRIOR to the IPO.

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How do venture capital firms make money by investing in startups?

Gust

The venture capital fund itself makes money… …by investing early in a startup company’s life, when success is not at all assured. Ultimately, the company will be either sold to a larger company (at a higher price) or begins to sell shares through the public stock market (“going public” with an “IPO”).

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How to Scale a Venture Capital (or Private Equity) Fund

David Teten

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. . – Hire more non-Partner staff.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. As two fund managers employing Flexible VC, we think it is a healthy addition to the ecosystem and will yield more predictable and stable healthy returns for investors. Their only option is to work with management to try to fix the problems.