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

Steve Blank

But for the last 40 years, it has provided the financial fuel for a revolution in Life Sciences and Information Technology and has helped to change the world. VC’s raise money from their investors (limited partners like pension funds) and then spread their risk by investing in a number of startups (called a portfolio).

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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. From a technology perspective our journey is nowhere near over. Opportunity funds typically have better economics for the LPs who invest in them.

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What Do LPs Think of the Venture Capital Markets for 2016?

Both Sides of the Table

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. Any correction will be followed by the long march of technology disruption and the profits disproportionally allocated to the winners.

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Welcome to the Lost Decade (for Entrepreneurs, IPO’s and VC’s)

Steve Blank

The collapse of the IPO market and dysfunctional math in the venture capital community has stacked the odds against you. VC’s invested their limited partners’ “risk capital” in a portfolio of startups in exchange for illiquid stock. Startup lifecycle in an IPO Market. Netscape’s 1995 IPO changed the rules.

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

David Teten

Some of the VC fund’s own limited partners will typically invest in a SPV, plus the platform’s members can contribute additional capital. . For more on this, see The 9 Steps of Using Technology to Improve Investing in Private Companies. – Go public. BRK-A); and Prospect Capital Corp.

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The Authoritative Guide to Prorata Rights

Both Sides of the Table

Prorata rights are one of the most important rights of a private market technology investors and yet are seldom fully understood. 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. Why prorata rights are now sought out by LPs.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO).