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A Venture Capital History Perspective From Jack Tankersley

Feld Thoughts

In January, Jerry Neumann wrote a long and detailed analysis of his view of the VC industry in the 1980’s titled Heat Death:  Venture Capital in the 1980’s. So contrary to the piece, it wasn’t VC were good at early stage technology, it was that they had newfound capital and a big exit window. Total. 1,250,000.     Total.

Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? Revenue multiple? have never come across a sophisticated A, B or C round venture capitalist who thinks convertible notes are a smart move for entrepreneur or investor. This week. Him: Yeah. We raised a seed round. About $1 million. Me: At what price? Me: With a cap?

It’s Morning in Venture Capital

Both Sides of the Table

Many observers of the venture capital industry have questioned whether its best days are behind it.  Thank you, Aaron Sorkin!

What Do LPs Think of the Venture Capital Markets for 2016?

Both Sides of the Table

In fact, if you add the capital flows of the past ten years, there have been just shy of $50 billion in net cash outlays. Sorry! Summary.

Why Venture Capital is So Much More Compelling Now

Both Sides of the Table

It’s not hard to find people willing to write the narrative that “venture capital is not an asset class” or “venture capital has performed terribly.” Having worked through the data with Glenn I am even more optimistic about venture capital than I was even a year ago.

Valuations 101: The Venture Capital Method

Gust

We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. The Venture Capital Method (VC Method) was first described by Professor Bill Sahlman at Harvard Business School in 1987 in a case study and has been revised since.

Deal Selection in Venture Capital

Rob Go

Source, Select, Win. Those are the three activities that all VC’s do. Selection is totally underrated, and is only getting more important.

Mentors, Revenue Based Financing, and Misperceptions About Venture Capital

Ask The VC

Fred Wilson (USV) has his normal MBA Mondays series with a guest post from Andy Sack titled Revenue Based Financing.  It’s an advertorial for Andy’s firm Lighter Capital  but is a really good explanation of how revenue based financing works. Today, we have three great ones.

Will Your Startup Get Venture Capital or IPO in 2013?

Startup Professionals Musings

For the full year 2012, venture-backed initial public offerings raised $21.5 Identify the right people in the right venture firms.

Ten Good Reasons to Take Venture Capital Money

This is going to be BIG.

Might be time to let someone you want to work with buy your equity. 8) You''re doing something disruptive that is going to have some regulatory or other kinds of hurdles that require human hours of changing the playing field. 9) You''re doing something physical in the real world that just requires a certain amount of capital overhead.

When, Where, and How to Raise Venture Capital

Startup Professionals Musings

And as they sit and dream, most entrepreneurs think about venture capitalists. And then go back to venture capitalists later.

Israeli Venture Capital Raising Flat in Q3, Seed Investments Decline

VC Cafe

Koby Simana, CEO of IVC Research Center, said: “The data suggest a slow recovery in the local high-tech sector’s ability to raise capital.

6 Ways To Increase Your Odds of Landing Venture Capital

Early Growth Financial Services

This guest post was contributed by BJ Lackland, CEO of Lighter Capital. Running a growing tech startup with steadily increasing revenues might put you on the right track to being a successful business owner, but it doesn’t mean you’re on an easy path to securing venture capital. startups get venture capital.

How to Get Venture Capital: What NOT to Do

Growthink Blog

Many top venture capitalists (VCs) have blogs. Josh is the CEO and Managing Partner of Detroit Venture Partners. That's a lot. read more.

Recurring Revenue is Magic

Seeing Both Sides

This allowed our revenue to skyrocket from $1.8 But the downside to our business model was that we did not have hardly any recurring revenue.  .

Why being a VC sucks. Advice to anyone who wants to get into venture capital.

This is going to be BIG.

I probably get around a dozen e-mails a week asking me how to get into venture capital. On top of that, anytime I talk to anyone who wants to get involved in startups but isn''t sure what they want to do, inevitably, I hear, "And then I was thinking maybe I should look into venture capital, too.". It sucks. Sad Keanu!

The Venture Capital Secret: 3 Out of 4 Start-Ups Fail

online.wsj.com

SIGNIFICANCE PROMINENT. --> The Venture Capital Secret: 3 Out of 4 Start-Ups Fail. An entrepreneur with a hot technology and venture-capital funding becomes a billionaire in his 20s. But now there is evidence that venture-backed start-ups fail at far higher numbers than the rate the industry usually cites. Twitter.

Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

Or at least venture-style returns. Not to mention providing the capital for growth. People This led to an explosion in startups.

Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First

Both Sides of the Table

Many companies that are raising B or C venture capital rounds right now raised their initial money in 2005-2008. It is 2010. Good luck.

The Sub $1bn Revenues IPO Act

A VC : Venture Capital and Technology

There's a bill in Congress to reduce the regulatory burdens for public companies that have less than $1bn in revenues and/or have been public for less than five years.  Venture Capital and Technology  The name is too long so I call it the "sub $1bn IPO bill." This is a good bill. It should become law.

Why Facebook Clearly Belongs in the 10X Revenue Club

abovethecrowd.com

Brief disclosure, Benchmark Capital has a minority position in Facebook as a result of the acquisition of FriendFeed, a company that was incubated in our offices. Facebook Internet IPO Uncategorized Venture Capital Web/TechAttached are my thoughts on the Facebook S-1 along with some quick stabs at valuation.

All Revenue is Not Created Equal: The Keys to the 10X Revenue Club

abovethecrowd.com

casual games Internet Uncategorized Venture Capital Web/Tech

Angel Investors, Venture Capital, Which Should You Chose?

Growthink Blog

And such was the case when I read the latest statistics from the National Venture Capital Association (NVCA). Down forty-eight percent.

Are You Ready for Venture Capital? How To Tell

Fresh Inc.: The Staff Blog

Much has been written about the similarity between marriage and the tie between a venture capitalist and an entrepreneur. Simple.

Worked Up about Unrealistic Venture Capital Valuation

Growthink Blog

So, Mike tells me he wants to raise a first round of venture capital based on a $100 million valuation. Now, anyone who knows anything about venture capital will literally laugh when they read a line like that. And how most likely, the chance of him raising venture capital with just an idea was zero.

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Ridiculousness of Venture Capital Advice

Babbling VC

Well I am sure he meant it differently but the irony of it struck me differently than the intent: "A startup should raise venture capital (or “venture-style” angel/seed funding) only if: 1) the goal is to build a billion-dollar (valuation) company, and 2) raising millions of dollars is absolutely necessary or will significantly accelerate growth.".

Private Equity And Venture Capital Investors: How to Leverage Their Pessimistic Thinking

Growthink Blog

Interestingly, when he said that, I felt like a venture capitalist. You see, venture capitalists or VCs hear tons and tons of business ideas.

Unicorpse

Feld Thoughts

Venture capitalist Marc Andreessen warned in a tweetstorm that startups with high burn rates would “vaporize.” That word is unicorpse. billion.

What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking

Steve Blank

Luckily in the last quarter of the 20 th century a new source of money called risk capital emerged. Filed under: Technology , Venture Capital.

Revenue benchmark for Series A – $1m run-rate and 20% MoM growth

The Equity Kicker

the ecommerce companies or software companies that we invest in) and you have a $1m revenue run rate and 20%+ month-on month growth you will generally be in good shape. Companies with greater revenues and stronger growth are able to raise bigger rounds at higher valuations. Startup general interest Venture Capital

Revenue exceptionalism vs margin exceptionalism

Chris Dixon

Three years ago, Fred Wilson wrote a great blog post called  When Talking About Business Models, Remember that Profits Equal Revenues Minus Costs. Most recent successful tech companies seem to have chosen the former: growing revenues at the expense of margins. Fast revenue growth seems to be the best way to justify your valuation.

What Do I Do Now? The Startup Lifecycle

Steve Blank

Venture-backed startups will often have a Series C or D or later rounds during this phase. Family/Career/Culture Lean LaunchPad Venture Capita

Venture capital vs self-funded for high growth technology businesses. This was surprising.

Business of Software Blog

There seems to be a generally held feeling that venture capital is ususally suitable for rapid growth businesses and that founders should consider taking it if they want to add rocket fuel to their business.  Carl Schramm talking about US innovation and venture capital. The figure quoted above is 21 minutes in.

Fund Raising is a Means Not an End

Steve Blank

What are revenue strategy and pricing tactics? But to achieve scale, startups need risk capital. Filed under: Venture Capital.

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Some Perspective

A VC : Venture Capital and Technology

In its last quarter Facebook had $1bn of revenue and 40% pre-tax operating margins. If we annualize those numbers, that would be $4bn of annual revenue and $1.6bn of annual pre-tax operating margins. That means that Facebook's enterprise value is greater than 10x current revenue run rate and greater than 25x EBITDA.

5 Alternatives to Venture Capital

Fresh Inc.: The Staff Blog

Entrepreneurs at growing companies often rush to raise venture funding. Profits, not revenue, are the fuel for growth.

Mobile Is Where The Growth Is

A VC : Venture Capital and Technology

ARPUs (avg revenue per user) on mobile are lower for display based revenue models on mobile across the board. It's not surprising that more than half of Twitter's ad revenue is coming from mobile. mobile Venture Capital and Technology Web/TechYou might think that all these big web services are flatlining.

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How Smart Entrepreneurs Select VC / Angel Investors

Startup Professionals Musings

The amounts from Angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. Marty Zwilling.

Profitless Prosperity

A VC : Venture Capital and Technology

Salesforce has made or lost a small amount of money every year for the past four years but it has grown its revenue from $1.3bn to over $3bn in those four years.   MBA Mondays Venture Capital and Technology Amazon had negative net income in 2012 and pretty much zero net income this year to date. It all depends on why. 

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How Investors Think About Valuation of Pre-Revenue Startups

SoCal CTO

A lot of my time is spent helping early-stage companies get to proof points so that they can raise capital. He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. They might have some seed money and are thinking or raising a Series A based on success of an early release (MVP). What are they really looking for?