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A Venture Capital History Perspective From Jack Tankersley

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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.

Entrepreneurial Density and Venture Capital

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Two of his latest articles talk about entrepreneurial density and venture capital. The Connection Between Venture Capital and Diverse, Dense Communities. In it, he looked at Venture Capital financing (total dollars and number of deals) on a per-capital basis. High-Tech Challengers to Silicon Valley.

Something Ventured: The Founding of the Venture Capital Industry

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Last night Amy and I watched the movie Something Ventured: Risk, Reward, and the Original Venture Capitalists.

Learn Everything You Need To Know About Venture Capital in 90 Minutes

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The post Learn Everything You Need To Know About Venture Capital in 90 Minutes appeared first on Feld Thoughts.

Why The SBIC Doesn’t Work For Venture Capital Anymore

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And, in the other two, I don’t expect to ever see any of my capital back because of the SBIC leverage. The SBIC was instrumental in the creation of the venture capital business. Bill Draper, the first West Coast venture capitalist, has been more blunt: “[Without it] I never would have gotten into venture capital.

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The Retrade

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This happens regularly in M&A deals especially with buyers who are buying thinly capitalized companies or ones who don’t care about their long term reputation. However, what’s notable to me on the investment side is that the retrade is happening up and down the capital stack. Venture Capital investing retrade terms

Founders – Use Your Down Round To Clean Up Your Cap Table

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watched, participated, and suffered through every type of creative financing as companies were struggling to raise capital in this time frame. I’ve seen every imaginable type of liquidation preference structure, pay-to-play dynamic, preferred return, ratchet, share/option bonus, option repricing, and carveout. It’s simply not true.

Book: The Business of Venture Capital

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In the fall of 2010 Mahendra Ramsinghani reached out to me by email about a new book he was working on called The Business of Venture Capital: Insights from Leading Practitioners on the Art of Raising a Fund, Deal Structuring, Value Creation, and Exit Strategies. Books ramsinghani VC Venture Capital

Are Individual Angel Investors Starting To Get Tapped Out?

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blasted out a response by email, which follows.  If you are an active angel, I’d love to hear what you think. I’m not seeing much evidence of this – yet … I have seen some of the more prolific angels start to slow down because capital is not recycling as fast as they are putting it out. ” .

Capital Is Cheap And Labor Is Expensive

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But I think cheap capital is only half of the equation. Capital remains incredibly cheap, so it’s flowing into wages. But

The Beginning of the End or the End of the Beginning

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Entrepreneurship cycles long term Venture CapitalI was in a conversation last week with a friend who asked “do you think this is the beginning of the end?” Then, earlier today, I was on the phone with one of my favorite lawyers and he made a joke about a deal I’m doing as harkening back to the late 1990s. Dick can be.

The Religion of Silicon Valley

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Venture Capital chris shipley fred wilson marc andreessen religion silicon valley startup communities tech industry There has been a lull in the chanting that “Silicon Valley is the center of the tech universe.” Silicon Valley is a religion, just like Crossfit is a religion. Religion seems to be the one that works.

The Silliness Of Recapping Seed Rounds

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In this case, we misread the respect – or lack thereof – that a co-investor and an entrepreneur would have for the other seed investors and the seed capital that helped them get a product built and into customer hands. Venture Capital fg angels recap seedHere’s the scenario. The product gets a lot better.

NovoED MOOC on Raising Venture Capital

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I’m spending the new two days filming the content for a MOOC on raising venture capital. The content is based on my book with Jason titled  Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist. The post NovoED MOOC on Raising Venture Capital appeared first on Feld Thoughts.

The Paradox of VC Value-Add

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The next person on the list of supporters is Scott Maxwell at OpenView Venture Partners. ” Second, I went through the scale up of the organizational VC firm in the late 1990s at Mobius Venture Capital. Venture Capital baremetalvc deeply held beliefs openview scott maxwell Techstars value-add VC Simple.

The Pre-money vs. Post-money Confusion With Convertible Notes

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This mess is especially yucky if the lawyers don’t focus on the final cap table and the capitalization opinion until the last few days of the process. And, if Jason and I ever write a third edition of Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist  our chapter on convertible notes might now be two chapters.

History Doesn’t Repeat Itself, But It Does Rhyme

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The questions were great, but some of what they were hearing about venture capital was scary as s**t. handful of them had jobs in venture capital firms and we talked about how to be effective as a freshly minted associated. Venture Investing Just Had Its Biggest Q1 in 15 Years, Says PwC Report. It’s New York.

What Acquihire Really Means

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Then acquires started using the concept of acquihire to try to shift consideration away from the cap table and instead increase the amount of “retention consideration” going to the remaining employees, independent of the capitalization of the company. Venture Capital acquihire acquisition Books google m&a

Spending The Day With Another VC Firm

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Venture Capital homebrew This was the first time I recall meeting Satya Patel although I’ve also known him from a distance.

Load Balancing Between VC Partners

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Venture Capital Foundry Group partners VCI woke up this morning in Fort Worth, Texas. For the first minute I wasn’t really sure where was I but it eventually snapped into focus. This happens to me periodically when I travel. I’ve got a stretch where I’m on the road a lot. We have a full day offsite every quarter.

Resolving Conflicts in a VC Partnership

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Venture Capital conflict partnership VC I got the following question the other day. “If you get a chance, I’d request you to write a blog post about various business decision related conflicts or misunderstanding that might occur in a partnership and how you folks at the Foundry Group resolve it. These are normal emotions.

When VCs Don’t B t You

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This LP is also a long time investor in Union Square Ventures and was one of the first people Fred introduced us to when we started raising the first Foundry Group fund in 2007. The prior fund that I had co-founded – Mobius Venture Capital – had blown up after having a very successful first fund in 1997.

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Book: Where The Jobs Are

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Incentivize the Formation and Commitment of Angel Capital. Fix Venture Capital by Fixing the IPO Market. Increase Startups Access to Capital. A few weeks ago I had lunch with John Dearie  to discuss a new non-profit he has started called The Center for American Entrepreneurship. Oh, and inertia. They follow. Workforce.

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Why I Don’t Have To Follow VC Blogs Anymore

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Venture Capital blogs mattermark VCTwo words: Mattermark Daily. When I started blogging in 2004 I think I was the third VC blogger after  David Hornik  and Fred Wilson  (if you were, or know, of another pre-2004 VC blogger, please tell me so I can update my historical recollection.). Today, hundreds of VCs blog.

Dear VCs: What Happens When Your Words And Your Actions Don’t Match

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Venture Capital actions behavior life startup life VC words Almost exactly a year ago I wrote a post  Your Words Should Match Your Actions. It was a generic rant that resulted from me watching a couple of VCs blow up their reputations with entrepreneurs I know because of how they treated them. Bad mojo. It’s worse that that.

Cynic or Optimist?

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Venture Capital andy grove intel investing macro paranoid optimistThere will be a downturn. It might be in a day. It might be in a year. It might be in a decade. We are in a very positive part of the startup / entrepreneurship cycle. The conversations devolve quickly into “yes we are” and “no we aren’t.”

Why VCs Should Recycle Their Management Fees

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Understanding what “recycling management fees” means is a fundamental part of understanding the economics of a venture firm.

Transparent Funding Announcements

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Kyle followed the tradition of extreme openness about the financing process that I think Rand Fishkin started with his post three years ago titled  Moz’s $18 Million Venture Financing: Our Story, Metrics and Future. Venture Capital buffer fundraising mattermark moz salesloft transparency VC” I found that fascinating.

1985: Oil Prices Will Go Up Forever

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Venture Capital cynic dallas macro oil optimistThis is not a post about a bubble, real or imagined. It’s a lesson from when I was 20 years old. showed up at MIT as an eager freshman. I was 17, from Dallas, with a nice pair of cowboy boots and long hair. Dave was a senior and I was a freshman. via chartsbin.com. We argued.

Try On The Decision For 30 Days

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In 2003 I seriously thought about quitting Mobius Venture Capital. I was tired, burned out, and very frustrated. I’ve made a lot of major decisions in my life – both personal and professional. For the really major decisions, I try them on for 30 days. Here’s an example. My whole world blew up in 2001.

Content From LPs

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OpenLP is a new site moderated by the gang at Sapphire Ventures that seems to be a collection of all the LP stuff floating around the web. The team at Notation Capital is doing a really good podcast with interviews with LPs. with lots of quirks.  He didn’t invest in our fund, but he made a strong impression on me.

What’s Old Is New Again

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Entrepreneurship cycles investing Venture Capital I know I’m getting old. remember in 2007 when the idea of a super angel appeared, where successful entrepreneurs were suddenly angel investors making 10 or more seed investments a year. This was a “new” innovation that was celebrated with much fanfare. Welcome to life.

The Twenty Minute VC Podcasts

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Venture Capital 20 Minute VC Harry Stebbings interview podcast seth levineI don’t listen to that many podcasts, but I like ones that are a short (< 45 minute) interview format. I can listen to one of these on a run or a drive to/from my office. Until recently, the only one I was listening to regularly was the Reboot.io

Business Love

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Entrepreneurship business love culture Venture Capital Last night I had dinner with my partners and our significant others. It was a wonderful evening with the three people I work most closely with, the people they love, and the most important person on the planet to me. Once a month we have a full-day offsite. They’re very tight.

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Our 2016 Foundry Group Fund and A Little History

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Yesterday we closed our fifth fund, Foundry Venture Capital 2016, L.P.  As with all four of our other funds, it’s a $225 million fund.

Weekend Podcast – Investors Are Human Too

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At Foundry Group, we’ve done a number of investments with Bijan’s firm Spark Capital , including AdMeld (sold – very successful investment), Trigget (sold, but not a successful investment), and most recently Sourcepoint. Venture Capital colonna fiduciary duty human podcast reboot.io sabet spark capital

The Next Reboot VC Bootcamp

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Venture Capital bootcamp reboot VCSignups are open for the second Reboot VC Bootcamp happening January 19-22, 2017. It will – once again – be at my house in Longmont, Colorado. If you are interested, here are some  reactions to the first Reboot VC Bootcamp.

The Long Lost Myth of Capital Efficiency

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I miss capital efficiency. justification by VCs to explain away their lack of capital to invest? rationalization by entrepreneurs to explain away their inability to raise capital? The Most Capital Efficient U.S. Venture Capital Tech Exits of 2014. Capital Efficiency’ doesn’t exist. Was it just b t?

Stuff That Caught My Attention This Morning

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Shortly after I came across Danielle Morrill’s post  Surviving Whatever Comes Next   and Heidi Roizen’s post  Dear Startups: Here’s How to Stay Alive.  I’m an investor in Danielle’s company Mattermark  and was parters with Heidi at Mobius Venture Capital. After all these years, I’m still a heavy RSS user.

Thanks Elon Musk For Being A Real Leader On Patent Reform

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That is no longer the case. They have been removed, in the spirit of the open source movement, for the advancement of electric vehicle technology.”