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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. LPs See The Over-Valuations and Don’t Like It. All isn’t completely rosy in the LP views of the venture industry.

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Does Your VC have an Investment Thesis, or a Hypothesis?

David Teten

Investment theses are just hypotheses; the portfolio shows how accurate the hypothesis was. However, we’d argue that for most smaller managers who are not brand names, it’s better to be highly identified in your niche than being a generalist. Most LPs we speak with agree. . 7) Stage-defined funds.

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Investing Outside The Bay Area

Haystack

This is a post I’ve wanted to write for a long time, but I needed the time to digest all the other great posts on the topics by other investors, and to analyze specific portfolio data from Haystack over the last five years. Haystack Portfolio Data. Well, that time has finally come. These questions have been rattling around my brain.

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What’s Your VC Tech Stack? Results from a Survey of Early-Stage VC Funds

David Teten

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. CB Insights , Preqin and Mattermark were also named as platforms that are regularly updated by GPs.

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IRR is a vanity metric

VC Adventure

Gone was the J-curve (named because often early fund returns are negative – mostly due to fees that drag down NAV prior to initial company write-ups). Traditionally LPs have viewed this as positive. In fact, many funds have the ability to invest more than 100% of their fund size (via profits generated from investments).

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

K9 Ventures

Enjoy watching… It took the supercomputer Deep Thought (the name seems oddly fitting with the current buzz around Deep Learning!) I believe that fund size is a slippery slope, in which the pressure of having to invest more capital forces venture firms to make investments in increasingly later-stage companies with larger check sizes.

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Final Close: The Story Behind NextView's Own Fundraise ? AGILEVC

Agile VC

We recently completed the final close of NextView Ventures, LP and we’re excited about both our progress to date and our plans for the future. As many of you know, NextView is a seed-stage VC fund. Just under half our portfolio is B2B in nature, slightly more than half is consumer-facing in some way. Best of luck.

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