Both Sides of the Table

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Who Should be on Your Startup Board?

Both Sides of the Table

The Limited Partners (LPs) who back funds don’t expect their dollars to be passive. But gone are the days where VCs put dollars into companies and ask founders to step aside quickly so that the VC can install their favorite management team. Can I really manage a 7-person board plus 2 board observers? Legally speaking.

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The Changing Structure of the VC Industry

Both Sides of the Table

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). and the bigger funds can’t get in directly.

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Does the Size of a VC Fund Matter?

Both Sides of the Table

It in not uncommon to see a VC talk about “total assets under management&# as in “We have $1.5 billion under management.&# I don’t really understand why VCs do this since it’s mostly a meaningless number. What is total assets under management? -

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High Functioning vs. Low Functioning Startup Boards

Both Sides of the Table

I work hard to create working relationships with my fellow non-management board members in the same way that every investor ultimately works to develop strong working relationships with founders. Every year I invited my largest investors to NYC to have an LPAC meeting (Limited Partner Advisory Committee?—?kind

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What Do LPs Think of the Venture Capital Markets for 2016?

Both Sides of the Table

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. But both seed investors and LPs alike agree that as long as these programs are managed sensibly, their existence is useful.

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What Entrepreneurs Should do about Price Fixing

Both Sides of the Table

Typical questions: What do you think of management? If you’re a seed fund that raised money from limited partners your fiduciary responsibility is to “make a buck.&# But I bet his broader point was to tone down the rhetoric and stop with inside baseball. People call their friends. How well do you know them?

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The Authoritative Guide to Prorata Rights

Both Sides of the Table

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. Why prorata rights are now sought out by LPs. But I can’t secretly take 50% while offering angels 0%. That seems fair. We are all bound to the same economics.