Both Sides of the Table

OCTOBER 12, 2014

It’s why I often advise angel investors to be careful about assuming that being an angel investor is a profitable exercise unless you have the ability to have a wide-enough portfolio to have a few companies doing extraordinarily well plus deep enough pockets to follow your winners. Why prorata rights are now sought out by LPs.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

This is going to be BIG.

FEBRUARY 23, 2016

You've decided to spread that across Z funds and you hope your portfolio meets some threshold. Either way, VC funds aren't really built around creating much of an experience for their Limited Partners. LPs could represent meaningful co-investors on deals and great mentors to founders.

Limited Partner 60

Limited Partner Venture Capital Partner LP 60

David Teten

SEPTEMBER 23, 2017

I’ve primarily seen quantitative analytic techniques used in origination , filtering , and in portfolio company recruiting , but technology can be used throughout the nine steps of the private company investing process: The 9 Steps of the Private Company Investing Process. 9% (1 / 12). Source: Knowledge.VC , based on scraping firm websites

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Both Sides of the Table

JULY 23, 2014

Limited Partners or LPs (the people who invest into VC funds) have taken notice as 2014 is by all accounts the busiest year for LPs since the Great Recession began. But it still takes VC to scale a business (thus large capital into industry winners like Uber, Airbnb, SnapChat, etc). Why is this?

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

The Equity Kicker

MARCH 19, 2012

The LP Update Meeting. I’m just back from our semi-annual update to the LPs in one of our funds, and I thought I would share the experience with you all. As a reminder, LPs, or limited partners, are the investors in venture capital funds. Portfolio update. It was published last Thursday. Manager update.

LP 97

LP Europe Portfolio Private Equity 97

Babbling VC

OCTOBER 3, 2011

For those of you not in the know, they are one of the largest limited partners ( LP's : investors in venture capital funds) in Europe and are basically in almost all the funds throughout the market. Hypothesis 3: Insufficient diversification in European VC managers’ portfolios .

LP 82

LP Europe Germany Venture Capital 82

Both Sides of the Table

FEBRUARY 6, 2019

Yes, VC / Startup Funding is up Massively If you look at how much VC firms have raised from Limited Partners (LPs) over the past 2 decades you’ll see that we’ve returned to a level that we haven’t seen since 1999. If you want the whole deck you can find it on SlideShare but I’ve written up a short summary with commentary below.

Venture Capital 292

Venture Capital IPO Mezzanine Early Stage 292

David Teten

JANUARY 23, 2021

Build the firm as much as possible before you solicit limited partners. . Your materials should ideally meet the expectations of the Institutional Limited Partners Association, even if you’re not targeting institutions. Note that limited partners view formatting as a proxy for professionalism.

Private Equity 78

Private Equity Venture Capital Technical Review Software Review 78

Both Sides of the Table

FEBRUARY 4, 2016

” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. Limited Partners (LPs) who invest in VC funds have continued to pour money into venture – with the market returning to pre-recession levels.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

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. Short track record.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

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. I would like to thank all the limited partners who entrust me and K9 to invest their capital. was a $40M fund.

Technology 96

Technology LP San Francisco Portfolio 96

David Teten

DECEMBER 3, 2019

However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and. Cobalt for General Partners helps GPs to optimize their fundraising strategy.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Agile VC

FEBRUARY 21, 2012

We recently completed the final close of NextView Ventures, LP and we’re excited about both our progress to date and our plans for the future. Our portfolio has grown to 15 companies today, the bulk of which is on the US East Coast and roughly half the companies have already progressed from the seed stage to completing Series A rounds.

LP 100

LP Seed Stage Silicon Valley Limited Partner 100

David Teten

JULY 12, 2017

When I meet with other VCs, family offices, and other institutional investors, the most common question I get is: “What are the highest-potential companies in your portfolio which are raising now?” We see our potential coinvestors in four primary buckets: 1) HOF Capital ’s own limited partners. Fundraising is burdensome.

Syndicate 60

Syndicate Syndication Institutional Investors LP 60

Both Sides of the Table

SEPTEMBER 28, 2011

I spend tons of time each day on portfolio company issues. I spent a late morning meeting with a product exec at one portfolio company. I spent time talking with 2 senior execs who are separately joining two of my portfolio companies. We call these investors “LPs” for limited partners.

Email 314

Email Product Term Sheet Portfolio 314

Pascal's View

MARCH 8, 2010

It’s that time of the year again– time to send out audited financial statements and K-1’s to your limited partners– which means it’s also a great time to address some of the common questions that investors raise about VC partnership governance and disclosure issues. entitled to receive from a VC fund?

Limited Partner 28

Limited Partner Government Delaware LP 28

This is going to be BIG.

JUNE 10, 2016

Reference calls to potential limited partners seemingly have no upside to founders. These investors are never going to fund them directly, and it probably helps in some way for the LPs in the funds who backed you to keep pouring money into those funds--regardless of how little the VC might have been helpful.

Cap Table 60

Cap Table Limited Partner LP Reputation 60

Agile VC

JULY 19, 2012

This is true not only in a firm’s dealings with entrepreneurs but also with it’s limited partners and even within the firm among its partners. Back in the 2000-2001 timeframe, a flood of LP capital was coming into the VC asset class given the strong returns of the mid-late 90s tech boom/bubble.

Cofounder 193

Cofounder Limited Partner Early Stage LP 193

David Teten

DECEMBER 12, 2017

As a globally focused LP in early stage VC funds, we at Blue Future Partners have observed a growing trend of firms investing substantially in software tools, whether developing proprietary solutions or adopting off the shelf tools. How can accelerating portfolio company value be aided by use of software?

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

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. Just about every analyst who looks at fund investing has built one.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

View from Seed

OCTOBER 29, 2014

Most of the dollars a VC firm invests come from outside limited partner investors (LPs). The actual partners of a VC firm (GPs) will typically invest a minimum of 1% of the total size of their fund,* though frequently this percentage is substantially higher (especially in many of the best funds). Endowments.

LP 335

LP Private Equity Institutional Investors Venture Capital 335

Agile VC

OCTOBER 29, 2014

Most of the dollars a VC firm invests come from outside limited partner investors (LPs). The actual partners of a VC firm (GPs) will typically invest a minimum of 1% of the total size of their fund,* though frequently this percentage is substantially higher (especially in many of the best funds). Endowments.

Venture Capital 279

Venture Capital LP Private Equity Institutional Investors 279

Both Sides of the Table

JANUARY 16, 2012

And I also now have to raise money myself, but this time from bigger institutions that our industry calls LPs (limited partners). But the short answer is that the best intro is from a portfolio company of that VC or by other entrepreneurs whom that VC respects. I now observes the fund raising process as a profession.

Developer 366

Developer Silicon Valley PR Las Vegas 366

Altgate

MARCH 8, 2009

I say ecosystem as opposed to industry because it is not just the VC funds themselves that are imploding, instead the collapse includes entrepreneurs and startups that were funded by VCs, angel investors, service providers like lawyers, bankers and accountants as well as limited partner investors in VC funds. But some will be saved.

Later Stage 34

Later Stage Early Stage Venture Capital Portfolio 34

Agile VC

DECEMBER 6, 2012

Unlike a startup that might raise equity financing across several rounds all combined in a single balance sheet, VC’s do not simply commingle these funds into a single bucket to be allocated across all the companies in that firm’s portfolio. Or public policy changes may force GPs or LPs to end longstanding relationships.

LP 178

LP Balance Sheet Differentiation Limited Partner 178

Both Sides of the Table

APRIL 3, 2010

As a reminder, VC funds are comprised of money from LP’s (Limited Partners) that include university endowments, pension funds, high-net-worth individuals, insurance companies and large corporations. In a single fund of $100 million you might have 30 difference LPs. Now, let’s get more ominous.

Pre-Money Valuation 226

Pre-Money Valuation Venture Capital LP Term Sheet 226

Professor VC

DECEMBER 8, 2015

Often times those involve trading within a venture capital portfolio or between two venture firms portfolios. I was a Limited Partner in Angel Investors II (Ron Conway's angel fund) that was an investor in Confinity. one company running out of cash and another with cash but searching for a business model).

Merger 28

Merger LP IPO Redemption 28

abovethecrowd.com

APRIL 20, 2016

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. LIMITED PARTNERS (LPS). Achieving profitability is the most liberating action a startup can accomplish.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Venture Chronicles

JULY 16, 2010

What happens is that the fund will feel the need to clean up the portfolio and shed the lower tier investments in a sector to consolidate around the top performers, as measured by their potential for new investment. This is definitely on the upswing and reflects the issues that funds are having with their limited partner investors.

Due Diligence 28

Due Diligence Term Sheet Limited Partner LP 28

K9 Ventures

NOVEMBER 30, 2008

The money that the GPs and other employees of the firm invest comes from Limited Partners (LPs) — typically the big university endowments, retirement funds, charitable organizations, family offices and high net-worth individuals. The LP perspective. The money side is flexible. What is not flexible is time.

IRR 48

IRR Venture Capital LP Early Stage 48

Both Sides of the Table

JANUARY 30, 2016

We did what many VC funds did – we presented our annual results, we stood up and talked about our portfolio companies, we invited a few to also present and then we had dinner & drinks at some posh restaurant. Before making this change I called our LPs to ask for advice and input. I had a few objectives in mind.

Community 150

Community Los Angeles LP Portfolio 150

Both Sides of the Table

MARCH 6, 2017

Every year Upfront Ventures surveys Limited Partners (LPs) who are the main source of capital that invests in VC funds and thus the main source of capital that goes to startups to get an early-warning sense of the year ahead, leaving aside any Black Swans. Here is the entire survey, which can also be downloaded and shared.

LP 286

LP Silicon Valley Venture Capital Startup 286