ithacaVC

FEBRUARY 13, 2013

Someone who negotiates carry yet never sees a return, fights for attribution, tames cantankerous LP side-letter requests…. Somebody to do “portfolio value-add” with a straight face, replenish the mojo of a depressed CEO who did not get featured in TechCrunch….and Yet gentle enough not to squish dreams of MBA students.

Liquidation Preference 55

Liquidation Preference IRR Due Diligence LP 55

This is going to be BIG.

JULY 30, 2015

One of the first things I did when I joined the venture asset class as a lowly institutional LP analyst in 2001 was to build the VC fund cashflow model. And those exits would be roughly 10% of the portfolio--about 3 out of every 30ish deals. If you're following on in the A round, then you shed a full 500 basis points on your IRR.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

David Teten

AUGUST 21, 2019

The RBI investor is motivated to help the company grow because that speeds up the pace of revenue payback, and therefore IRR. not because of LP objections or moral concerns, but because the pool of potential M&A buyers is greatly limited. Aligned incentives. No personal guarantees , unlike some traditional lenders.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Both Sides of the Table

MAY 24, 2021

Since funds were driven by extreme successes in their portfolios where just one deal could return 5x the entire fund while 95% of the fund may have done well but not amazing, not missing out on deals was critical. Therefore many newer LPs revert to the simpler “are you in the top quartile?” It literally drove FOMO.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Agile VC

NOVEMBER 13, 2012

At Risk – Usually starts with a firm beginning to see challenges in large portions of its portfolio, or in keeping the partnership together, or in the viability of the firm’s core strategy as broader markets start to shift (e.g. Well first it’s worth understanding the distinct phases of exactly how a VC firm dies.

LP 154

LP Portfolio Venture Capital IRR 154

Hunter Walker

FEBRUARY 25, 2018

One consistent LP complaint I hear about new’ish fund managers is that they forget a bunch of fund construction and portfolio modeling decisions are connected. When a VC is fundraising one of the stats they like to present to LPs is the quality and size of follow-on in the portfolio. That’s a great question!

Product 82

Product IRR LP Seed Stage 82

K9 Ventures

NOVEMBER 30, 2008

Doing 10 investments at $1M each would mean that the partner would now have a gigantic portfolio to manage and there just isn’t enough time in the day, or week, or year to manage that many investments, serve on boards and help companies grow while still continuing to look for new investments. The LP perspective.

IRR 48

IRR Venture Capital LP Early Stage 48

abovethecrowd.com

APRIL 20, 2016

Gavin Baker, a high-profile portfolio manager at Fidelity has a message for Unicorn CEOs: “Generate $1 of free cash flow, and then you can invest everything else in growth and stay at $1 in free cash flow for years. Do you feel the need to raise more capital quickly before the prices erode further and bring down your IRR?

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

David Teten

NOVEMBER 23, 2020

I highlight endogenous social impact because many of my portfolio companies might give money to charity or provide low-cost pricing to nonprofits, but that’s not what I think of as an impact company; they’re tacking on social impact on top of their core business, whatever that is. . Starship was launched by the co-founders of Skype.

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60