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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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What Entrepreneurs Should do about Price Fixing

Both Sides of the Table

Typical questions: What do you think of management? Have you reference them? 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. How well do you know them?

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What’s the Difference? Venture Capitalist vs. Angel Investor

The Startup Magazine

An article in Forbes explains that a venture capital firm makes its money through management fees (a percentage of the amount of capital that they have under management) and carried interest (a percentage of the profits of the business). Venture capitalists usually participate in a round of investment referred to as Series A.

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How VCs Structure a Syndicate and Recruit Coinvestors

David Teten

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.

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Why So Many Small Emerging Managers Don’t Use Placement Agents

David Teten

It would make life a lot easier for emerging managers if they could outsource the entire fundraising process. Empirically, few small emerging investment managers hire placement agents, particularly in venture capital. There are eight main reasons why so many small emerging managers do not work with placement agents: Economics. .

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15 Steps to Fundraising for Your New Venture Capital or Private Equity Fund

David Teten

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.

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Announcing K9 Ventures III, L.P. – A $42M technology-focused Pre-Seed fund

K9 Ventures

For anyone who hasn’t seen the movie, here’s a clip courtesy of YouTube for the reference. The new $42M fund is backed by several high quality institutional partners, including university endowments, fund of funds, family offices, and key individuals. Yes, 42: The answer to life, the Universe, and everything.