Both Sides of the Table

MARCH 1, 2016

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.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

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

FEBRUARY 20, 2019

As per the chart above, I highly recommend keeping a founder dominated board at the seed stage. Whether the seed investor gets a permanent seat or a temporary seat will largely depend on: The size check they wrote (If it’s a $1.5m —?just having a sparring partner with a vested interest in your success can be useful.

Venture Capital 236

Venture Capital Startup Angel Investor Silicon Valley 236

Both Sides of the Table

OCTOBER 12, 2014

But with the massive growth of seed funds being raised and the huge value increase of prorata rights many more LPs have stepped in to take their VC (industry term is GP) position. What would you do as an LP fund if you backed a seed-stage GP who had a position in Twitter, Pinterest, etc.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

Both Sides of the Table

JULY 23, 2014

The rise of “micro VCs” or seed-stage funds. 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?

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Both Sides of the Table

FEBRUARY 6, 2017

WINTER For starters when we conducted our annual VC & LP survey in December of 2016 to prepare our annual Upfront State of the VC Industry report we found that twice as many VCs cut their investments in 2016 relative to 2015 with > 30% of VCs having cut investments. Unless of course something Trump’s our good weather.

Venture Capital 150

Venture Capital Saudi Arabia Kuwait Burn Rate 150

Both Sides of the Table

SEPTEMBER 28, 2011

Separately, in the morning I called a seed-stage investor in NY and talked to him about investing in one of my companies. We call these investors “LPs” for limited partners. I had lunch with an LP. He turned me down for a job in 2005. Yesterday I offered him a term sheet. Fund raising.

Email 314

Email Product Term Sheet Portfolio 314