Seeing Both Sides

SEPTEMBER 26, 2010

Venture capital investors are historically accustomed to being the wolf. One LP complained to me the other day: “The founders get liquidity, the angels get liquidity, and the pressure to go IPO is taken off the shoulders of the board and management team. To achieve that same 38% IRR in 9 years, a 20x return is required!

IRR 36

IRR IPO Entrepreneur LP 36

Both Sides of the Table

MAY 25, 2013

“I don’t know the exact math, but I hear it again and again: the top 2% of firms generate 98% of the returns in venture capital.” But as an LP you can’t count on that any more than VCs can. The goal of an LP is to get into the top decile. In 2000 our industry had more than $100 billion in LP money.

LP 374

LP Later Stage IRR Term Sheet 374

David Teten

MARCH 2, 2013

I recently had an extensive debate with Tom about why and whether small funds (like mine, ff Venture Capital ) tend to outperform large funds (like his). I argue that, just as with hedge funds and mutual funds, the larger the venture capital fund, the more difficult it is to generate strong returns.

LP 114

LP Securities and Exchange Commission Silicon Valley Venture Capital 114

David Teten

AUGUST 21, 2019

Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? The RBI investor is motivated to help the company grow because that speeds up the pace of revenue payback, and therefore IRR. RBI capital is normally treated as debt. Who are the major Revenue-Based Investing VCs?

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

ithacaVC

FEBRUARY 13, 2013

Someone who negotiates carry yet never sees a return, fights for attribution, tames cantankerous LP side-letter requests…. He is the author of “The Business of Venture Capital”, and co-author (with Brad Feld) of “Startup Boards”. Yet gentle enough not to squish dreams of MBA students. So, God made a VC! So, God made a VC!

Liquidation Preference 55

Liquidation Preference IRR Due Diligence LP 55

This is going to be BIG.

MAY 16, 2016

There aren't many people who get the chance to analyze venture capital fund return data. Mattermark just posted a short report full of such statements and the former 21 year old institutional LP analyst in me (the job I got my VC start in over 15 years ago) flipped his s**t upon close review. 3) You can't eat IRRs for breakfast.

Venture Capital 66

Venture Capital IRR LP .Net 66

Agile VC

NOVEMBER 13, 2012

There are some obvious structural reasons why a shakeout in the venture capital industry takes a long time. The reality is that it wasn’t until the GEC (Global Economic Crisis, Great Recession, Credit Crunch, call it what you will) of late 2008 and early 2009 that the shakeout really began for venture capital.

LP 154

LP Portfolio Venture Capital IRR 154

abovethecrowd.com

APRIL 20, 2016

In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. Competition also has access to capital. LIMITED PARTNERS (LPS). Anxiety slowly crept into everyone’s world.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

K9 Ventures

NOVEMBER 30, 2008

The business of venture capital is relatively young. The birth of modern-day venture capital (not considering the European monarchs financing explorations and projects as venture capital) can be traced back to American Research and Development, which was started by Georges Doriot. The LP perspective.

IRR 48

IRR Venture Capital LP Early Stage 48

David Teten

NOVEMBER 23, 2020

Blue Future Partners, a venture capital fund of funds, recently interviewed me on ESG in venture capital. For example, I’m an investor via ff Venture Capital in: – Plated.com is a meal kit company, delivering you the recipe and fresh ingredients to make a gourmet meal in your own kitchen.

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60