Both Sides of the Table
MARCH 1, 2016
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. LPs See The Over-Valuations and Don’t Like It. All isn’t completely rosy in the LP views of the venture industry.
Both Sides of the Table
OCTOBER 12, 2014
They often create the biggest tensions between investors who are investing at different stages in the business. These tensions seep out in some angels or seed funds publicly or semi-privately deriding later-stage VCs for their “bad” behavior. I have seen bad behavior from later-stage VCs, believe me.
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Feld Thoughts
MARCH 24, 2017
From those founders, we are aware that FC takes their mission “to be the most aligned fund to founders at the seed stage” very seriously. As an LP, I’ve had the good fortune to be an investor in many funds, including some exceptional ones. FC’s portfolio is made up exclusively of seed stage investments at seed valuations.
VC Adventure
MAY 5, 2022
BUT (and you knew there was a but here given the post title…) it’s a poor way to compare the relative performance of funds early, and even into the mid/later, stages of a fund’s life. But that doesn’t seem to be stopping funds or LPs from touting IRR as the gold standard for evaluating relative fund performance.
K9 Ventures
AUGUST 14, 2017
It was a conscious decision to maintain the fund size at the same level, despite both market pressure (larger rounds at earlier stages) and demand pressure (lots of LP money entering the stage) to raise a larger fund. And yes, I’m presently 42. At K9 we do the opposite of the volume game.
K9 Ventures
OCTOBER 10, 2017
Where did the term Pre-Seed come from? The first time I used the words “pre-seed” (yes, the initial use was in all lower-case, but then became upper-case over time) was on June 27, 2013, at the K9 Ventures LP Meeting. They talk about how deal sizes and stages were changing even back then. Seed rounds were getting bigger.
K9 Ventures
OCTOBER 12, 2015
Not to mention that in later stages, high valuations can almost be fatal for some companies that don’t have the operating metrics to justify those valuations once the market turns. I’ve often said in private that I blame LPs for the cyclical nature of the venture industry. As valuations increase, VC returns go down.
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