The Startup Magazine

FEBRUARY 11, 2022

A global leader in innovative cleaning solutions and hygiene management, Washing Systems is a leading provider of specialty chemicals and technical services to the North American and European textile rental market.

Private Equity 128

Private Equity Equity Technical Review Software Review 128

Steve Blank

MARCH 16, 2016

VC’s raise money from their investors (limited partners like pension funds) and then spread their risk by investing in a number of startups (called a portfolio). BTW, Angel investors do not have limited partners, and often invest for reasons other than just for financial gain (e.g., The Deal With the Devil.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

Both Sides of the Table

DECEMBER 16, 2014

Our last fund was $200 million but as you may already know since we raised that fund we added new partners Greg Bettinelli and Kara Nortman and Venture Partner Hamet Watt – all of whom are busy looking at new deals for the firm in addition to Yves Sisteron (the founder), Steven Dietz (also part of founding team) and myself.

Las Vegas 396

Las Vegas St. Louis Southern California San Diego 396

David Teten

MAY 16, 2017

Historically, the process of winning capital from limited partners has been opaque. LIMITED PARTNERS’ PERSPECTIVE. Origins is a podcast about Limited Partners, created by VC Notation Capital. Denis Tse: Fund Management Craftsmanship: An LP’s Food for Thought for Emerging VC General Partners.

Private Equity 60

Private Equity Venture Capital Technical Review Equity 60

Both Sides of the Table

MARCH 14, 2013

Mostly it’s because your marketing campaigns suck. Or more directly – they are likely narcissistic resuscitations of your newest features or bragging points that nobody but your marketing team and your mom care about. Think about Luma Partners. But everybody knows Luma Partners in our space. I am a VC.

Campaign 389

Campaign Marketing Widget Analytics 389

View from Seed

DECEMBER 4, 2019

This equates to something in the neighborhood of a 10% IRR, which isn’t great given the illiquidity of the asset class and strength of the public markets. Over the last 10 years, we’ve been in a bull market with considerable froth in late stage financing activity and valuations. How Have the More Recent Vintages Performed?

LP 256

LP IRR Distribution Portfolio 256

Both Sides of the Table

JULY 23, 2014

15 years ago we were at the peak of Internet hype with the launch of many over-capitalized businesses with a market size & opportunity was limited. The VC market has right-sized (returned back to mid 90′s levels & less competition). But markets value high growth over short-term profitability.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

thebarefootvc

JULY 3, 2017

Limited partners (LPs), who manage the capital that gets deployed into venture capital funds, can play an important role in diversifying the funding landscape. Limited partners are pension funds, university endowments, funds of funds (who get their money from pension funds), family offices and foundations.

LP 65

LP Technical Review Silicon Valley Limited Partner 65

David Teten

DECEMBER 3, 2019

In liquid markets, most of the calories expended on technology and analytics are focused on trade selection, or “ origination ”. I use another live Google doc to maintain my database of companies I’m marketing to other VCs. See Bessemer Venture Partners’ A comprehensive guide to security for startups. 2) Market .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

David Teten

SEPTEMBER 23, 2017

The extreme example of this are algorithmic investors in the public markets, who design algorithms which trade on the designer’s behalf, as opposed to making trading decisions directly. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . 1) Market fund.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 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. This only becomes noticeable in down markets.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Both Sides of the Table

FEBRUARY 20, 2019

In 2019 market conditions often are such that founders retain control of the board through the A-round, usually in a 2–1 (common to investor) ratio but sometimes it’s 3–2 (common to investor). 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

Steve Blank

FEBRUARY 10, 2016

If you’re a venture capitalist … you have limited partners that give you money to invest on their behalf, and you’re responsible for giving them outsize returns. — Getting Keen Home’s smart vent to market was no small task. So there’s what called spot market, and a futures market (for parts).

Silicon Valley 120

Silicon Valley Ohio Columbus Entrepreneur 120

Hearpreneur

NOVEMBER 24, 2018

eld of marketing and sales for Ciba- Geigy Pharmaceuticals before co-founding Noven Pharmaceuticals in 1986. Her responsibilities included: strategic counseling, business modeling and deal negotiation for the various for medical startups in the portfolio and is a limited partner at NGT3 Medical Accelerator in Israel.

Founder 91

Founder Miami Cofounder 91

David Teten

JANUARY 11, 2020

The challenge is that my time and money budget for “influencing”–content creation and marketing– is minimal. Also, since I’m not trying to be a full-time marketer, I can’t use some of the standard celebrity techniques. They’re taking a $1m check from me, or giving $5m to me as a limited partner. Tech stack.

Social Media 60

Social Media Technical Review Media Private Equity 60

Both Sides of the Table

SEPTEMBER 23, 2010

What is their market traction? So is the market really colluding? We discuss things like what the general prices in the market are but not in a price fixing way but in a general commentary way, like “I can’t believe that guy paid 40 pre! Typical questions: What do you think of management? How well do you know them?

Entrepreneur 292

Entrepreneur Technical Review Stealth Valuation 292

VC Cafe

JANUARY 15, 2024

With the IPO window closed, growth funding severely dwindled and multiples down as a result of the public market, unicorns face tough choices in 2024. There’s been a process of ‘right sizing’ in venture and many growth investors played it safe and waited for the market to bottom out.

IPO 88

IPO Valuation Private Equity 88

Both Sides of the Table

OCTOBER 12, 2014

Prorata rights are one of the most important rights of a private market technology investors and yet are seldom fully understood. Because companies are raising way more capital in private markets than they ever did in the past. So the answer is: sometimes they take it, sometimes they don’t. Times won’t always be good.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

Growthink Blog

MAY 14, 2014

Here’s why: Market Efficiency. The result has been a “regression to the mean” - with alpha performance by fund managers being driven as much by randomness and luck (as it has been with public market mutual funds for decades) as by coherent design. With now over one thousand active U.S. With now over one thousand active U.S.

Venture Capital 101

Venture Capital Disintermediation Technical Review Term Sheet 101

David Teten

APRIL 13, 2021

That’s one of the reasons I don’t believe that start-ups can outsource sales until they clearly have product-market fit, and even then I typically view it as a core competency that they must build in-house. Limited partner checklist for evaluating funds. Fundraising hacks for VC and private equity funds.

Private Equity 60

Private Equity Technical Review Management LP 60

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. Companies are raising billions of dollars in the private markets and the valuations are enormous PRIOR to the IPO.

Venture Capital 292

Venture Capital IPO Mezzanine Early Stage 292

This is going to be BIG.

OCTOBER 5, 2012

Thanks to the SEC, you don't know who's actually fundraising, what kind of performance they have, and you'll never get reached by their marketing. I would argue that returns might go up if VC fundraising was a lot more meritocratic and if the big Limited Partners got to see everyone who was fundraising at the same time.

LP 97

LP Venture Capital Technical Review Nebraska 97

Steve Blank

JULY 2, 2009

As Peter began to speak extemporaneously our mouths slowly fell open as he described the video game market, its size, its demographics, the state of the technology, and the state of games. He took us through a day (and a night) of a hardcore gamer and told us about the new class of CD-ROM based game machines about to hit the market.

Silicon Valley 120

Silicon Valley Technical Review RSS Software Review 120

David Teten

AUGUST 18, 2017

Your company typically has seven layers of content marketing. What content do you use in marketing your firm? Your company (or your fund, if you’re a VC) typically has a 7-layer stack of marketing content. To the maximum extent possible, in our marketing materials and Linkedin profiles, we ban adjectives. Email templates.

Due Diligence 60

Due Diligence Marketing Reputation Social Media 60

VC Cafe

MAY 18, 2023

Look beyond the spreadsheet and into the team, the product, and the market. Thou Shalt Love Thy Limited Partners as Thyself : Treat your LPs with respect and transparency. They are more than just a source of capital; they are your partners in this journey. They are the ones in the trenches every day.

Venture Capital 78

Venture Capital Due Diligence Exit Strategy Deal Flow 78

ReadWriteStart

JULY 19, 2023

Initially, they assumed that venture capital and investing in funds were common knowledge among potential limited partners (LPs). By tapping into these different markets, they aim to discover unique investment opportunities and build a global network of entrepreneurs and investors.

Kazakhstan 92

Kazakhstan Montana Venture Capital Miami 92

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

David Teten

JULY 25, 2017

For example, our limited partners have major ownership interests in such companies as Adidas , LafargeHolcim (largest building materials manufacturer in the world), and SuperNAP International (developer of data center facilities worldwide; used by Amazon, Intel and Microsoft). For example, consider public relations.

Portfolio 60

Portfolio Technical Review Private Equity Database 60

Gust

MAY 7, 2014

Ultimately, the company will be either sold to a larger company (at a higher price) or begins to sell shares through the public stock market (“going public” with an “IPO”). But as the company grows and becomes more valuable, the value of the fund’s corresponding percentage grows as well.

Venture Capital 154

Venture Capital IPO Limited Partner Carried Interest 154

VC Cafe

JUNE 29, 2011

The latest Global Trends in Venture Capital report, compiled by the British Venture Capital Association (BVCA) and Deloitte, asks the question: “Is a an active IPO market in your home country essential for the success of the venture capital industry in that market?&#. Makes sense and we know that the IPO market has been weak.

IPO 87

IPO Global Venture Capital Marketing 87

Both Sides of the Table

APRIL 2, 2010

Some wait 5-7 years but usually this is because it’s proving more difficult to raise a new fund due to market conditions or the lack of returns in their current fund. Fred Wilson also wrote a sophisticated analysis of why he believes the market must normalize to smaller amount of money going into VC firms.

Venture Capital 269

Venture Capital Balance Sheet Early Stage Software Review 269

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. The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Retain 100%.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

JULY 26, 2016

They started as an elite black-car service and only once they saw Lyft doing well in the peer driving market did they launch UberX. In picking your market you should focus on “deflationary economics” or lowering the price, functionality and margin of your business but targeting ever-increasing market sizes afforded by Internet scale.

Venture Capital 150

Venture Capital San Francisco Startup Limited Partner 150

Both Sides of the Table

FEBRUARY 25, 2019

this requires a strong knowledge of market data, employee performance, company performance relative to market and available resources?—?cash Every year I invited my largest investors to NYC to have an LPAC meeting (Limited Partner Advisory Committee?—?kind I practice what I preach. kind of like a board for a VC firm).

LP 269

LP Startup Burn Rate Stock Options 269

David Teten

AUGUST 15, 2013

Most VCs (including ff Venture Capital ) collect money from independent limited partners in order to form their fund. This is not a comprehensive list, but merely an attempt to highlight some of the most notable examples relevant for technology-enabled startups. 1) Corporate Venture Capital.

Startup 114

Startup Technical Support Venture Capital Balance Sheet 114

Both Sides of the Table

JUNE 29, 2017

A huge thank you to all of the Limited Partners who have entrusted us with your capital, time and reputations. We don’t mind investing earlier if the situation warrants and we don’t mind leading a B-Round if we know the team well or the market. We’ll invest in about 15 new companies every year or just over 2 per partner.

Los Angeles 287

Los Angeles Las Vegas Venture Capital San Francisco 287

Both Sides of the Table

OCTOBER 1, 2009

In my previous post, The VC Ice Age is Thawing (for now) I wrote about the reasons why the VC market came to a screeching halt in September 2008 and remained largely shut until at least April 2009. There are now signs the VC market has gathered pace meaning it’s a great time to be fund raising. This is one book-end of the cycle.

IPO 255

IPO Investment Bankers Venture Capital Marketing 255