Hunter Walker

APRIL 27, 2014

Last week we held our first annual LP meeting, when venture funds get their investors together with updates on operations and results. There are several Homebrew investments going to market for their Series A this year. In bull markets we’re told to expect a seed failure rate of ~40% and closer to 50% in typical markets.

LP 97

LP Cofounder Term Sheet Valuation 97

YoungUpstarts

JULY 15, 2020

The volatile economy is one example: we don’t know how or when the markets will recover. and founder and CEO of PHT Opportunity Fund LP. Throughout his career, he has bought, expanded, and sold 23 companies, operating in 44 countries. Or, we use contingency statements: if THIS is true, THAT is true.

Harvest 251

Harvest LP Community Founder 251

Genuine VC

SEPTEMBER 7, 2010

The famed business strategist Michael Porter described a set of successful general strategies which firms employ to achieve a sustainable competitive advantage: differentiation strategy and cost leadership strategy for those firms with a broad market scope, and a segmentation strategy for those with a narrow market scope.

Seed Stage 191

Seed Stage Belgium Differentiation LP 191

Hunter Walker

JANUARY 5, 2014

Sometimes these come from spending time with the founders/team via 1:1s, Board meetings, whiteboard sessions, lunches, etc but often it’s operating independently and bringing back what they need. Oh, your top priority right now is a marketing hire? 4) Fund Operations. 5% Fund Operations. Hey, want to grab a coffee?

Software Review 103

Software Review Balance Sheet Cofounder Technical Review 103

Haystack

JUNE 1, 2018

” Depending on your point of view, it is the perfect trigger for a conversation about the state of the Bay Area’s investment market. A well-networked LP recently remarked to me they’ve estimated over 150+ of the 500+ known seed funds are currently “in market” right now.

LP 116

LP Global Social Media Portfolio 116

David Teten

JANUARY 19, 2021

John Berger, Director Operations & Impact Solutions, Toniic , observed that this has clear investor benefits: “ The grace period became a feature because it benefits investors in regions like the US where there can be tax differences between short and long term gains. Payments are commonly delayed for a grace period of 12-36 months.

Cofounder 78

Cofounder Technical Review Equity Dividend 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

MAY 25, 2013

But as an LP you can’t count on that any more than VCs can. The goal of an LP is to get into the top decile. When it went to raise its fund 10 years ago the rumor was that many LPs were disappointed with recent returns and did not re-up. It’s a market, after all. Here the data is not always kind to VCs.

LP 374

LP Later Stage IRR Term Sheet 374

Eric Friedman

DECEMBER 30, 2020

With the advent of programs like CartaX and what I call streaming venture funds , the liquidity in private markets is going to get the foundation to grow significantly in 2021. 5/ The rise of operator angels + micro VCs explodes in 2021. 6/ I don’t get the vaccine for COVID19 (but want too!).

Stock 120

Stock Private Equity Option Pool LP 120

Version One Ventures

OCTOBER 17, 2018

It’s an exciting time to be launching a new fund as our focus on network effects and broad geography are driving opportunities in both existing and emerging markets. Having run our own companies, we try to pass on as much of our operations knowledge as possible. And last but not least, we thank our investors, the LPs.

Silicon Valley 127

Silicon Valley North America San Francisco LP 127

Both Sides of the Table

APRIL 10, 2016

I asked for the responsibility of setting out the firm’s future strategy and our daily operating tasks. I laid out the following goals: Hire investment partners with operating experience combined with investment experience and deeply committed to LA Tech, but with strong relationships in SF, NYC and beyond.

Los Angeles 150

Los Angeles Early Stage LP Partner 150

BeyondVC

JUNE 29, 2005

Every year the Dow Jones Private Equity Analyst puts together a show where fund managers can listen to what the LP community is interested in and where they plan on allocating their dollars. 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

Feld Thoughts

MARCH 20, 2019

That first real job was as the first employee of Petcom, a company started by a husband and wife team that grew to about 20 people before the oil and gas market for software evaporated in 1985. In these conversations, the question of how I shifted from “operator” to “investor” inevitably comes up.

LP 108

LP Angel Investor Cofounder Leadership 108

Hunter Walker

FEBRUARY 5, 2019

The first real institutional funds in this segment of the market are starting to reach the back half of their original partnerships – where some combination of age, wealth effect, changes in personal goals, etc have started the transition. It’s a question that, even six years later, is still unanswered. In others, TBD.

LP 92

LP Early Stage Syndicate Syndication 92

Both Sides of the Table

MAY 23, 2012

There are obvious reasons the industry has had less-than-desirable returns, including: massive over-funding of the sector, huge increases in inexperienced venture capitalists that took a decade to peter out, and the massive correction in the value of the public stock markets that closed many exit opportunities for half a decade.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

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 walk through below how progressive investors are using technology and analytics throughout all of their operations. 2) Market . The 11 Steps of Investing in Private Companies. 1) Manage the firm .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Hunter Walker

MAY 18, 2015

These managers sit in our Privates bucket and are therefore expected to beat the public markets by at least 4.5%. We have a preference for strong local teams in certain geographic regions or those focused on underserved sectors and inefficient markets. An investor needs much more than patient capital and an appetite for illiquidity.

LP 48

LP Portfolio Early Stage Institutional Investors 48

The Equity Kicker

JANUARY 11, 2013

I was chatting with a friend last night about the lack of institutional investor (LP) interest in European venture capital as an asset class. Most LPs lack the contacts or the time to build up that intimate knowledge and they (regrettably) choose to stay away from our asset class.

LP 143

LP Europe Institutional Investors Venture Capital 143

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. Fundraising is burdensome.

Syndicate 60

Syndicate Syndication Institutional Investors LP 60

The Equity Kicker

JULY 8, 2019

The other most common focus areas for platform teams are to employ talent and PR/marketing experts who give advice to portfolio companies on strategy in these areas and have relationships and discounts with pre-vetted agencies who can deliver the work. Competition is increasing as more capital flows into the market and transparency improves.

Portfolio 84

Portfolio LP Venture Capital Partner 84

VC Cafe

FEBRUARY 1, 2011

We will also be hosting panel sessions – featuring eminent industry practitioners – on Emerging Markets, Value Creation, Fundraising and Venture Capital. Panels : Value Creation – Driving LP returns through operational excellence. Emerging Markets – Finding opportunities beyond BRIC.

Private Equity 79

Private Equity Equity LP Limited Partner 79

K9 Ventures

OCTOBER 12, 2015

That is because the venture capital industry operates in cycles. This includes, but is not limited to money from China, India, Middle-East and also from “retail” investors (or otherwise unsophisticated investors who are attracted to a market simply because of the amount of press/media attention it gets).

Venture Capital 48

Venture Capital Seed Stage LP Valuation 48

The Equity Kicker

JULY 16, 2012

Most VCs (especially those with limited operational marketing experience, or in a few cases, those with too much good fortune with big wins) have no understanding of this. This strategy is called “Niche to Win”. I think this is a really important point and one that is not widely understood.

LP 105

LP Early Stage Valuation Differentiation 105

David Teten

SEPTEMBER 2, 2017

I thought it would be helpful to put together some notes on market norms and issues to consider in negotiating a partnership at an institutional investment firm. So I would start by sharing with the fund an institutional LP due diligence checklist , and ask them to share their data room with you.

Private Equity 60

Private Equity Venture Capital Equity Partner 60

Both Sides of the Table

SEPTEMBER 28, 2011

Operations. We call these investors “LPs” for limited partners. I had lunch with an LP. Marketing. But what kind of business person would I be if I allocated 100% of my time to customer service and zero to marketing? Marketing = deal flow = share of mind = start of future relationships.

Email 314

Email Product Term Sheet Portfolio 314

Babbling VC

APRIL 22, 2013

If as a startup you''re even remotely considering raising money, you should be out in the market. If they don''t get a homerun in the portfolio fast, their fund has no chance of ever raising additional money or even returning money to their LP''s. Why do I think this is the case? Again, your chance to squeeze into a deal.

LP 76

LP Venture Capital Portfolio Finance 76

Genuine VC

OCTOBER 18, 2011

Second, unless the company is a truly break-out win that supports an entirely new venture firm coming in to buy an additional 20% in the Series B, (in this current market especially) Series B rounds are quite frequently done by insiders even when the startup is progressing.

Valuation 154

Valuation LP Boston Partner 154

This is going to be BIG.

JANUARY 9, 2012

It’s basically all in the marketing. Since the DMCA, we’ve basically operated in an environment of “ask forgiveness rather than permission” when it comes to copyright and IP online. I understand why policymakers would think these bills are a good idea. If you support this bill, you are not supportive of us.

IP 131

IP New York LP Internet 131

David Teten

JANUARY 21, 2021

Recognizing the need for creative investment structures in their Colorado market, they cofounded the Alternative Capital Summit , creating the first community of Flexible VCs and alternative startup investors. . The fund’s network of mentors are all invested LPs, ensuring they have “skin in the game.” —– Indie.vc

Equity 78

Equity Revenue Cofounder Colorado 78

Professor VC

NOVEMBER 19, 2009

I attended the annual LP meeting for a venture capital firm this week and got into a discussion about the above question. The business environment is much more complex today, and the hopeful entrepreneur need to understand more of the environment in which they will operate. ProfessorVC. The last blogger in Silicon Valley.

San Jose 43

San Jose Silicon Valley Las Vegas Venture Capital 43

David Teten

AUGUST 21, 2019

A company with that mindset is dramatically less risky, because it’s not dependent on the financing markets for continued viability. Borchers notes, “There are tons of good, short-term working capital products in the market already (factoring solutions, MRR loans, AR financing, etc.), Works for non-tech companies.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

K9 Ventures

OCTOBER 10, 2017

The first time I used the words “pre-seed” (yes, the initial use was in all lower-case, but then became upper-case over time) was on June 27, 2013, at the K9 Ventures LP Meeting. Seed is the new Series A. (~$2M used get for building product, establishing product-market fit and early revenue). Where did the term Pre-Seed come from?

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

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? Some 33% do not use any newsletters.

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

Hunter Walker

SEPTEMBER 29, 2022

Most of this discussion is about ‘playing offense’ — working towards being a good steward of LP capital and the risk/reward associated with VC. And finally, a more robust (but still somewhat opaque) secondary market emerged for transacting equity among parties. As we’re recently reminded, markets go down, not just up.

Venture Capital 122

Venture Capital Cap Table LP Equity 122

Both Sides of the Table

JUNE 29, 2011

Open cloud led by Amazon with their AWS services drove total operating costs down by 90%. This will continue while we’re in a tech bull market and I predict will wane when we’re not. I believe some VCs have entered the early-stage market as simply an option on future financing rounds. There are also others.

Venture Capital 296

Venture Capital Software LP Early Stage 296

Hunter Walker

MAY 7, 2015

Last week Homebrew held its second annual LP meeting, coinciding with our second anniversary as a fund. Comparing Notes About Market Trends: Although Homebrew is still young we’ve definitely seen some changes in the seed stage ecosystem since we started in early 2013.

LP 48

LP Advisory Board Harvest Seed Stage 48

View from Seed

MAY 29, 2019

Today, we are seeing less syndication of seed rounds and sharper elbows among many of the funds in the market. This segment of the market is basically mirroring other segments of the venture ecosystem which has operated this way for some time. Similarly, the seed market is beginning to look like this too.

Syndicate 267

Syndicate Syndication Cofounder Cap Table 267