Both Sides of the Table

FEBRUARY 6, 2019

I’ve heard a lot of people question whether there is too much money in venture capital chasing too few great deals. Others believe that new business models are emerging that could replace venture capital all together. We’re in a new tech bubble!” some have pronounced. Follow the money.

Venture Capital 292

Venture Capital IPO Mezzanine Early Stage 292

Both Sides of the Table

DECEMBER 7, 2014

We were talking about raising money from LPs. He was lamenting how much he hated LP meetings and how little he wanted to interact with LPs going forward. As an insider I can tell you that a large portion of VCs don’t like interacting with LPs – they view it as a “necessary evil” of the business.

Software Review 341

Software Review Customer Technical Review LP 341

This is going to be BIG.

OCTOBER 5, 2012

Unlike a venture capital firm that states its criteria on its website and has forms, e-mail addresses, etc to encourage outreach, your site does a lot better job of saying "Go away!". The interesting thing is that being connected to wealth isn't necessarily a driver of good venture capital performance--why would it be?

LP 97

LP Venture Capital Technical Review Nebraska 97

Both Sides of the Table

FEBRUARY 20, 2019

Others may not have the experience you want and they fill up a seat that makes retaining founder control more difficult if you ultimately raise large rounds of venture capital in the future. What happens at the A-round of venture capital? The Limited Partners (LPs) who back funds don’t expect their dollars to be passive.

Venture Capital 236

Venture Capital Startup Angel Investor Silicon Valley 236

Both Sides of the Table

JULY 23, 2014

There has been much discussion in the past few years of the changing structure of the venture capital industry. The rise of alternative sources of capital (crowd funding and the like). 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

Both Sides of the Table

FEBRUARY 6, 2017

It was only a year ago that many in the Venture Capital industry were predicting that “winter was coming” and to be fair the author of this post was chief amongst them. While this it total FDI as opposed to just venture, it should give you an indication of the international trend. Baidu alone raised $3.2

Venture Capital 150

Venture Capital Saudi Arabia Kuwait Burn Rate 150

This is going to be BIG.

FEBRUARY 23, 2016

You run X amount of capital and Y percentage of that is allocated to venture capital. 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

Both Sides of the Table

JULY 16, 2010

The VC industry grew dramatically as a result of the Internet bubble - Before the Internet bubble the people who invested in VC funds (called LPs or Limited Partners) put about $50 billion into the industry and by 2001 this had grown precipitously to around $250 billion. Here’s my take: 1.

LP 311

LP Technical Review Early Stage Silicon Valley 311

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. Funder Category. Equity Ownership.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

David Teten

JANUARY 23, 2021

Build the firm as much as possible before you solicit limited partners. . The next best move is to build your core team, e.g., recruit an Advisory Board, Venture Partners, and EIRs. For ideas, see How Executives Can Work from Home with Private Equity and Venture Capital Funds. Prepare Limited Partner FAQs.

Private Equity 78

Private Equity Venture Capital Technical Review Software Review 78

Both Sides of the Table

OCTOBER 12, 2014

People all across the value chain have taken notice including Limited Partners who are the people who invest in VC funds in the first place. The number of these groups that did “direct” investments in venture capital used to be relatively small. but didn’t have funds to back-up their prorata rights?

Technical Review 336

Technical Review Later Stage Early Stage LP 336

David Teten

AUGUST 15, 2013

1) Corporate Venture Capital. Most VCs (including ff Venture Capital ) collect money from independent limited partners in order to form their fund. Some corporations emulate this model by creating their own wholly-owned VC entities, typically with one LP: the corporate balance sheet. 4) Accelerators.

Startup 114

Startup Technical Support Venture Capital Balance Sheet 114

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. 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 8: Pension fund regulations and practices limit European access to funds .

LP 82

LP Europe Germany Venture Capital 82

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. You incorporate expected company returns, mortality rates, and fee structures to try to predict how a venture capital fund works from a cash in, cash out, and NAV standpoint.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

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

Both Sides of the Table

SEPTEMBER 1, 2016

Scott Kupor of A16Z responded with a comprehensive overview of valuation methodology in a post that while accurate feels more targeted at sophisticated Limited Partners (LPs) who invest in funds. What’s an LP to do in deciding which funds to invest in? Let me offer you an insider’s take. But I’m making the opposite point.

LP 264

LP Jordan Cofounder Limited Partner 264

Feld Thoughts

JULY 6, 2016

My partner Lindel Eakman wrote a post a few days ago about his transition from Austin to Boulder and a really helpful one about how to work with him titled A Human User Interface….with This prompted me to poke around for other content from the limited partner (LP) side of the LP/VC/entrepreneurship universe.

LP 75

LP Limited Partner Open Source SEO 75

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

This is going to be BIG.

SEPTEMBER 19, 2012

While my company may not have lasted, and even though I swore to myself that I wouldn't do another startup--this recently launched new venture is moving forward with the help of some fantastic partners. I'm ecstatic to announce that Brooklyn Bridge Ventures has just completed a first close of $3.5

LP 112

LP New York City New York Chad 112

Feld Thoughts

JANUARY 17, 2011

started Draper Gaither & Anderson , one of the first VC firms on the west coast that coincidentally was the first firm to use a limited partner (LP structure). And William III started several firms, including Draper & Johnson, Sutter Hill Ventures , Draper Richards , and Draper Internationa l.

LP 129

LP Startup DC Washington 129

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 agree with Tom on the principle that there is a natural upper limit to fund size before returns tend to suffer, but we are at odds as to where that limit is.

LP 114

LP Securities and Exchange Commission Silicon Valley Venture Capital 114

BeyondVC

JUNE 29, 2005

I am not sure how many entrepreneurs understand the structure of venture capital funds but the bottom line is that while VCs manage funds, we ultimately report to our investors or Limited Partners (LPs). In the early morning, a show of hands revealed about a 20% LP audience and 80% fund manager group.

LP 60

LP Private Equity Due Diligence Venture Capital 60

Pascal's View

MARCH 17, 2010

This is the eighth in our series of ten frequently asked questions from investors in venture capital partnerships. Susan Mangiero , CEO of Investment Governance’s Fiduciary X , asked me the following: Question: What happens if an LP wants to exit a VC fund? What are their rights?

Limited Partner 28

Limited Partner Government LP Partner 28

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

David Teten

APRIL 13, 2021

Empirically, few small emerging investment managers hire placement agents, particularly in venture capital. LPs tend to assume that the highest-quality managers have all the demand they can handle. Private equity/venture capital managers have a much longer duration than most any other fund type. But can you?

Private Equity 60

Private Equity Technical Review Management LP 60

VC Cafe

FEBRUARY 1, 2011

and Vincenzo Morelli (Partner – TPG Capital and Chairman of European Private Equity Roundtable). and Vincenzo Morelli (Partner – TPG Capital and Chairman of European Private Equity Roundtable). Panels : Value Creation – Driving LP returns through operational excellence.

Private Equity 79

Private Equity Equity LP Limited Partner 79

David Teten

JULY 12, 2017

GPs strategically invite trusted [Limited Partners and others] to co-invest, often based on the LP’s ability to add value or when the amount of capital required to complete an attractive transaction is larger than they are able to invest alone.”. 2) Investors with very specific value-add. Economic benefit.

Syndicate 60

Syndicate Syndication Institutional Investors LP 60

K9 Ventures

AUGUST 14, 2017

K9’s last fund, K9 Ventures II, L.P., 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. was a $40M fund. And yes, I’m presently 42.

Technology 96

Technology LP San Francisco Portfolio 96

Agile VC

JULY 19, 2012

1) Self-Awareness & Humility - These are of course virtues that transcend venture capital or even professional pursuits broadly. 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.

Cofounder 193

Cofounder Limited Partner Early Stage LP 193

Babbling VC

JANUARY 7, 2011

I personally believe that one of the major drawbacks to venture capital in Europe is chronic under-financing and people skirt around this issue. Conversely you could blame the LP's (limited partners: the investors in venture funds) and say they are the one's not risking it enough.

Finance 76

Finance LP Europe Valuation 76

Pascal's View

MARCH 19, 2010

This is the last in our series of 10 frequently asked questions from investors in venture capital partnerships. Susan Mangiero , CEO of Investment Governance’s Fiduciary X , asked me the following: Question: I’ve read that some GPs are suing LPs for not making capital calls.

Limited Partner 28

Limited Partner Government LP Venture Capital 28

Pascal's View

MARCH 15, 2010

This is the sixth in our series of ten frequently asked questions from investors in venture capital partnerships. Do you think the trend is shifting in favor of institutional LPs to receive better terms? Do you think the trend is shifting in favor of institutional LPs to receive better terms?

Clawback 28

Clawback Limited Partner Government LP 28

Version One Ventures

SEPTEMBER 12, 2017

And so, we keep hearing how venture capital is about to be disrupted. Blockchain and ICOs are giving VCs new ways to run their own businesses – from changing agreements with limited partners to allow the fund to buy tokens and currencies directly to figuring out how to safely store token and currencies.

Venture Capital 164

Venture Capital LP Dilution Limited Partner 164

Agile VC

OCTOBER 29, 2014

Most folks reading this will know that many startups were built in part with the help of venture capital. Most of the dollars a VC firm invests come from outside limited partner investors (LPs). A smaller portion of the total capital in the VC ecosystem comes from high net worth individuals. Advisory Firms.

Venture Capital 279

Venture Capital LP Private Equity Institutional Investors 279

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. But what tools are they using themselves to automate their own processes?

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

View from Seed

OCTOBER 29, 2014

Most folks reading this will know that many startups were built in part with the help of venture capital. Most of the dollars a VC firm invests come from outside limited partner investors (LPs). A smaller portion of the total capital in the VC ecosystem comes from high net worth individuals. Advisory Firms.

LP 335

LP Private Equity Institutional Investors Venture Capital 335