VC Cafe

FEBRUARY 27, 2023

Taking stock of the venture capital market in 2023, it’s clear to see that we’re in a transition point. And young investors who left careers in banking or consulting to enter venture feel disillusioned – they didn’t think it would be this hard. billion in new funds in the fourth quarter.

Venture Capital 215

Venture Capital Technical Review LP Institutional Investors 215

David Teten

MAY 16, 2017

Historically, the process of winning capital from limited partners has been opaque. I’ve written a number of pieces relevant if you are fundraising for a private equity or venture capital fund – I suggest my presentation on raising capital for tech companies and How to Write a Resume that Wins Investors.

Private Equity 60

Private Equity Venture Capital Technical Review Equity 60

View from Seed

DECEMBER 4, 2019

The longer the portfolio maintains the same value without distributing back cash, the worse the fund’s ultimate IRR. This equates to something in the neighborhood of a 10% IRR, which isn’t great given the illiquidity of the asset class and strength of the public markets. So, is this good or bad?

LP 256

LP IRR Distribution Portfolio 256

David Teten

JANUARY 19, 2021

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. We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY. Funder Category. Equity Ownership.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

This is going to be BIG.

JULY 30, 2015

You incorporate expected company returns, mortality rates, and fee structures to try to predict how a venture capital fund works from a cash in, cash out, and NAV standpoint. And no, the numbers don't exactly add up--but they're more than close enough for venture capital. It's also not the "average fund".

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

Hippoland

NOVEMBER 13, 2016

The #1 problem with the venture capital game, in general, is that *actual success* is measured over decades not years. A common intermediary milestone for most investors is IRR (internal rate of return) of the fund. So there are a lot of unrealized gains built into the IRR of an early fund. Let’s take this one last step.

IRR 48

IRR Valuation Portfolio Due Diligence 48

K9 Ventures

DECEMBER 14, 2008

In my previous post , I claimed that “Venture Capital is a people business in every sense of the word. What early-stage venture capital is betting on is people. The other form of scaling in venture capital is that of the size of the venture funds.

IRR 99

IRR Bandwidth Venture Capital Early Stage 99