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The Coming Brick Wall in Venture Capital & Why This is Good for US Innovation

Both Sides of the Table

This is the final part of a 3-part series on the major changes in the structure of the software & the venture capital industries. Or the Cliff Note’s version: Open Source & Cloud Computing (led by Amazon) drove down tech startup costs by 90%. Some are going later stage to not miss out on hot deals.

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Early-stage Regional Venture Funds–part 2 of 3 of Bigger in Bend

Steve Blank

The cloud , open-source development tools and web 2.0 as a distribution channel have vastly reduced the amount of capital a startup needs at the early stage when the risk is greatest. Startups still need capital to scale once they find good product-market fit and a repeatable-scalable business model.).

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Understanding Changes in the Software & Venture Capital Industries

Both Sides of the Table

In this three-part series I will explore the ways that the Venture Capital industry has changed over the past 5 years that I would argue are a direct result of changes in the software industry, not the other way around. So it’s unsurprising that typical “A rounds&# of venture capital were $5-10 million.

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Meet the 32 Israeli Centaurs that reached $100M in ARR

VC Cafe

The term ‘Centaur’, coined by venture capital firm Bessemer, indicates companies that achieved $100M in annual recurring revenue (ARR). Scaling to $100 Million from Bessemer Venture Partners. But becoming a Unicorn, or receiving a billion dollar valuation is no longer an indication of growth.

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? VI: Revenue-based financing: The next step for private equity and early-stage investment. GCVF is pioneering the future of venture capital and high growth startups for all small communities. —– Indie.vc

Equity 78
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Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

Yesterday I wrote Part 1 of the series on the changes to the software industry over the past decade that has led to changes in the venture capital industry itself. If you don’t want to read that post, the summary is: Open source computing drove computing costs down 90%, which spurred innovation in technology.

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Understanding the Risks of VC Signaling

Both Sides of the Table

This is part of my ongoing series on Understanding Venture Capital. I recently wrote a blog post on understanding how the size and age of a venture capital fund might affect you when you’re raising money. We used the Y Combinator open source term sheet. The last post was a high-level primer.