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What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

Consumers pulled their money out of these risky investments, but when LPs make commitments to VC funds they make 10-year, legally binding commitments. So as of 2008 total LP commitments were still at nearly $250 billion. I was at dinner with a large LP and mentioned that I had heard the industry would shrink by 50%.

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The Changing Structure of the VC Industry

Both Sides of the Table

At the other end of the spectrum large funds have gotten even larger in the past few years which has massively increased the amount of consolidation in our industry as 66% of LP money into venture is now concentrated in late-stage or full-cycle VCs. Why is this? 2007 was the watershed year.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Seed-stage compatible: Like traditional equity VC investors, Flexible VCs accomodate early-stage investment risk within their portfolios better than a traditional RBI funder. has open-sourced their investment structure , now on version 3.0, A similar, open-source, highly visual tool focused on VC is Venture Dealr.

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

David Teten

However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and. If you have one, please contact me. 7) Negotiate .

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It’s Morning in Venture Capital

Both Sides of the Table

Cloud computing and the open source movements have brought down the costs of starting a company by more than 90%. Thomson Reuters data shows that around $10 billion of LP money went into VCs per year pre bubble. By 2000 the total LP commitments had mushroomed to more than $100 billion. The Funding Problem.

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

With a portfolio that includes food, tech, and services, the fund is industry-agnostic and focused on the overlooked and underrepresented with high-margin business models. They have open-sourced their investment structure , now on version 3.0, Of Indie.VC’s portfolio, 60% of investments are not in NY, CA, or MA.

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How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm

David Teten

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. Contact : to existing portfolio, to internal team resources, to LPs. Bloomberg Beta open-sources their entire operating manual on Github, where their website lives.