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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. Fundraising is burdensome.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

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.

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How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

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.

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Will Seed Funds Be Multigenerational?

Hunter Walker

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.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

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 .

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Sharp Elbows Among Seed VCs

View from Seed

Historically, seed rounds were syndicated among several different firms. Today, we are seeing less syndication of seed rounds and sharper elbows among many of the funds in the market. Instead of broadly syndicated rounds, we are seeing much more competition for fewer slots. These two forces go hand in hand.

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