Both Sides of the Table

DECEMBER 7, 2014

We were talking about raising money from LPs. He was lamenting how much he hated LP meetings and how little he wanted to interact with LPs going forward. As an insider I can tell you that a large portion of VCs don’t like interacting with LPs – they view it as a “necessary evil” of the business.

Software Review 341

Software Review Customer Technical Review LP 341

Both Sides of the Table

FEBRUARY 6, 2019

I’ve heard a lot of people question whether there is too much money in venture capital chasing too few great deals. Others believe that new business models are emerging that could replace venture capital all together. We’re in a new tech bubble!” some have pronounced. Follow the money.

Venture Capital 292

Venture Capital IPO Mezzanine Early Stage 292

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. They decide which VCs receive capital to invest in entrepreneurs. The post The LP Opportunity to Change Tech Culture appeared first on The Barefoot VC.

LP 65

LP Technical Review Silicon Valley Limited Partner 65

David Teten

MAY 20, 2016

My colleague Sebastian Soler, software engineer at ff Venture Capital, is leading the launch of a new Meetup with me. I’ve also made significant engineering contributions to our two other platforms, Admin (back-end portal for our data team) and Access (LP dashboard). I asked him to write a guest post: Hi!

Private Equity 113

Private Equity Equity Cap Table Venture Capital 113

View from Seed

DECEMBER 11, 2019

But even at the Partner-level, the amount of transition in Venture Capital is much more than you perhaps would expect… especially in a business which should have a long term orientation with portfolio investment-hold periods and Partnerships lasting more than a decade. So why is there so much turnover in Venture Capital?

Venture Capital 204

Venture Capital Cap Table Partner LP 204

Version One Ventures

JULY 24, 2019

Right now, this is a two- to three-year role where our new team member will learn about the business of venture capital and get the opportunity to work with some really interesting startups. Reporting for our investors, including writing quarterly updates and preparing LP advisory board meetings.

Technical Review 125

Technical Review Advisory Board Due Diligence LP 125

Both Sides of the Table

JULY 23, 2014

There has been much discussion in the past few years of the changing structure of the venture capital industry. The rise of alternative sources of capital (crowd funding and the like). The overall trends in our industry have breathed a new life into the venture capital industry. Why is this?

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Feld Thoughts

JUNE 5, 2018

Recently, Beezer Clarkson at Saphirre Ventures wrote a post titled Raising A Fund? 9 Questions That Help Get You To GP/LP Fit. In it, Beezer goes through, in depth, the top questions she recommends you ask an LP to determine GP/LP fit. Why venture and how long have you been investing in it?

LP 87

LP Portfolio Management Founder 87

Both Sides of the Table

JULY 16, 2010

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%.

LP 311

LP Technical Review Early Stage Silicon Valley 311

Both Sides of the Table

MAY 23, 2012

Many observers of the venture capital industry have questioned whether its best days are behind it. Looking ahead at the next decade I am excited by what I believe will be viewed as one of the best and most rational investment periods for venture capital due to seven discrete factors: 1. The Funding Problem.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Feld Thoughts

JULY 28, 2014

On paper, only one is in positive return territory as a fund, but the SBIC leverage is a substantial negative factor for the LP investors in that particular fund. And, in the other two, I don’t expect to ever see any of my capital back because of the SBIC leverage.

SBIC 142

SBIC Venture Capital Colorado SBA 142

Agile VC

OCTOBER 23, 2012

The VC industry (both the GP part and the LP part) pays attention to the sector’s returns, but the broader tech ecosystem only occasionally tunes in. 2) No Synthetic Alternative – If an LP can’t “buy” VC as an index, could they replicate the returns of an index some other way?

LP 176

LP Accredited Investor Carried Interest Portfolio 176

Both Sides of the Table

OCTOBER 12, 2014

It’s why I often advise angel investors to be careful about assuming that being an angel investor is a profitable exercise unless you have the ability to have a wide-enough portfolio to have a few companies doing extraordinarily well plus deep enough pockets to follow your winners. Why prorata rights are being guarded by VCs.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

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. We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY. FLEXIBLE VC VS. OTHER VENTURE CAPITAL MODELS.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

This is going to be BIG.

DECEMBER 3, 2020

Having a better overall portfolio of venture capital by adding funds into the mix. By being in a pool of other fund investors, the LP meetings and co-investment calls could be an opportunity to connect with other like-minded or like-situationed investors—but again, it depends on how a fund organizes its community.

Portfolio 134

Portfolio Syndicate Syndication Deal Flow 134

Both Sides of the Table

FEBRUARY 18, 2017

Union Square Ventures (USV) has been one of the most successful venture capital firms of the past 10–15 years and continues to be a leader in our industry. Lindel is no stranger to thorny venture capital issues — he was arguably amongst the most successful LPs of his generation.

Leadership 161

Leadership LP Venture Capital Silicon Valley 161

David Teten

JANUARY 23, 2021

The next best move is to build your core team, e.g., recruit an Advisory Board, Venture Partners, and EIRs. For ideas, see How Executives Can Work from Home with Private Equity and Venture Capital Funds. For example, one LP told me she prefers customized emails from fund principals, as opposed to a bulk-mailed quarterly update.

Private Equity 78

Private Equity Venture Capital Technical Review Software Review 78

VC Cafe

JULY 4, 2022

What’s happening in the venture capital world? The WSJ confirmed what we already know: Q2 venture capital investments declined both in size and in valuation. Venture Capital Feels the Stock Market’s Pain, Wall Street Journal. For example, Klarna is rumoured to be raising $650M in fresh capital at $6.5

Venture Capital 167

Venture Capital Valuation Private Equity LP 167

Version One Ventures

JULY 31, 2018

I often joke that I have gone through the Wertz School of Venture Capital ??. Since 2012, we have made over 40 investments and have been busy building our fund, expanding and deepening our network, and most gratifyingly, working with our portfolio companies in their pursuit to transform their industries and the world.

Hiring 166

Hiring San Francisco Advisory Board Due Diligence 166

Babbling VC

OCTOBER 3, 2011

For those of you not in the know, they are one of the largest limited partners ( LP's : investors in venture capital funds) in Europe and are basically in almost all the funds throughout the market. Hypothesis 3: Insufficient diversification in European VC managers’ portfolios .

LP 82

LP Europe Germany Venture Capital 82

The Equity Kicker

MARCH 19, 2012

The LP Update Meeting. I’m just back from our semi-annual update to the LPs in one of our funds, and I thought I would share the experience with you all. As a reminder, LPs, or limited partners, are the investors in venture capital funds. Portfolio update. My latest column for The Kernel. Manager update.

LP 97

LP Europe Portfolio Private Equity 97

This is going to be BIG.

FEBRUARY 23, 2016

You run X amount of capital and Y percentage of that is allocated to venture capital. You've decided to spread that across Z funds and you hope your portfolio meets some threshold. The GP-LP relationship shouldn't be so one dimensional around returns, and I would argue that, in the seed stage, it's sub-optimal.

Limited Partner 60

Limited Partner Venture Capital Partner LP 60

Austin Startup

AUGUST 10, 2017

We were roommates at the time and launched two different companies out of a kind-of dumpy apartment: We both went on to raise millions in venture capital and build meaningful businesses in interesting spaces. 3) Rebalancing — we rebalance portfolios monthly. has about ~40 employees and has raised $9M in venture capital.

Technical Review 48

Technical Review Cofounder Technical Cofounder Austin 48

Both Sides of the Table

MAY 24, 2021

Since funds were driven by extreme successes in their portfolios where just one deal could return 5x the entire fund while 95% of the fund may have done well but not amazing, not missing out on deals was critical. The Valley has obsessed with a quick up-and-to-right momentum story because we were thought to live in “winner take most” markets.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

The Equity Kicker

NOVEMBER 26, 2013

LPs, the investors in VC funds, have a difficult job to do, largely because they have to work with poor quality data and only a small fraction of VCs deliver the returns that make them worth investing in. Discipline also helps to keeps a venture fund’s loss ratio low which is important as they are ultimately stewards of LP investment funding.”

LP 154

LP Venture Capital Portfolio Reputation 154

David Teten

SEPTEMBER 2, 2017

It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. These are many of the steps I went through when I joined HOF Capital. These are many of the steps I went through when I joined HOF Capital. Good luck in finding your dream opportunity!

Private Equity 60

Private Equity Venture Capital Equity Partner 60

Version One Ventures

OCTOBER 17, 2018

and Canada, offering portfolio companies strong networks and resources on both sides of the border. Lastly, we will continue our goal to be the most value-add investor for our portfolio founders as they push to create category-leading companies. 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

FEBRUARY 4, 2016

” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. We surveyed 73 LP firms to get their views on the market. “This is the year the tortoise may gain on the hare.” How do I know?

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

Version One Ventures

JUNE 3, 2013

The analyst position is a two- to three-year role where you will learn about what the venture capital business is all about and get the chance to work with some interesting startups. Helping with reporting for our investors, including writing quarterly updates and preparing LP advisory board meetings. Good Excel modeling skills.

Hiring 156

Hiring North America Los Angeles Advisory Board 156

This is going to be BIG.

JULY 30, 2015

One of the first things I did when I joined the venture asset class as a lowly institutional LP analyst in 2001 was to build the VC fund cashflow model. You incorporate expected company returns, mortality rates, and fee structures to try to predict how a venture capital fund works from a cash in, cash out, and NAV standpoint.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Haystack

JUNE 1, 2018

Perhaps because of this success and the unique elbow grease they supply to their portfolio, it was shocking to many to see that one of the storied seed franchises would contract, become its own sole LP, and scale back its operations. Yet for many, it didn’t come as a surprise.

LP 116

LP Global Social Media Portfolio 116

The Equity Kicker

JULY 8, 2019

When I started in venture capital in the late 1990s VCs were regularly lambasted for taking long summer holidays and spending too much time on the golf course. Then from the mid 2000s, value add began moving beyond the partner to the firm as VCs began employing people who’s full time job was helping their portfolio.

Portfolio 84

Portfolio LP Venture Capital Partner 84

Both Sides of the Table

OCTOBER 14, 2015

I spoke at Michael Kim’s excellent annual Cendana VC/LP conference today. One of the points I tried to make is that as venture capital investors as an industry we seem to have a healthy disdain for public market investors. This will be seen as a watershed moment in the wake-up call and rationalization of our industry.

Burn Rate 150

Burn Rate San Francisco Private Equity LP 150

Haystack

MAY 5, 2018

The public’s interest in learning more about and participating in venture capital seems to grow more and more each week. You are your own LP and GP. New investors can build their portfolio this way. The Catch: You need to get the capital to invest first. New investors can build their portfolio this way.

Salary 76

Salary LP Portfolio Venture Capital 76

K9 Ventures

AUGUST 14, 2017

K9’s last fund, K9 Ventures II, L.P., It was a conscious decision to maintain the fund size at the same level, despite both market pressure (larger rounds at earlier stages) and demand pressure (lots of LP money entering the stage) to raise a larger fund. Our space, The Kennel, has been home to many of the K9 portfolio companies.

Technology 96

Technology LP San Francisco Portfolio 96

David Teten

JANUARY 21, 2021

V: Should you raise venture capital from a traditional equity VC or a Revenue-Based Investing VC? If the company sells or raises enough capital, the investment converts into an agreed-upon percentage of equity. GCVF is pioneering the future of venture capital and high growth startups for all small communities.

Equity 78

Equity Revenue Cofounder Colorado 78