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Venture Capital Returns

A VC : Venture Capital and Technology

This post is for everyone who thinks venture capital is an easy business. Here are short term and long term returns for the venture capital business over the past ten years compared to the public equity markets in the US. Venture Capital and Technology

Why 2017 Should be a Great Year to Raise Venture Capital

Both Sides of the Table

Recently Upfront Ventures published its outlook for the technology startup world and venture capital overall titled it “ WTF Happened to Winter ?” Again, I suspect they would be more concerned today about net neutrality, cyber security, immigration and trade more broadly.

17 Venture Capital Blogs You Should Be Reading

Up and Running

Whether or not you’re raising money for your business, getting advice from venture capitalists can be invaluable. Inside the Minds of Top Venture Capitalists: Blogs You Need to Read to Understand How VCs Think. Andrew Parker is a VC with Spark Capital in Boston.

Where Do Venture Capital Dollars Actually Come From? This Visual Explains

Agile VC

Most folks reading this will know that many startups were built in part with the help of venture capital. So I wanted to dive a little deeper into what I call the startup capital supply chain. Google, Intel Capital).

6 Steps to Raising Venture Capital in 6 Months

Gust

To raise capital as a very early-stage business, you have to convince investors that your current size isn’t indicative of where you will be in the future. A woman you don’t know tells you that she’s going to run a marathon of 7-minute miles. She’s never run a long distance race before.

The Trouble with Venture Capital Data

This is going to be BIG.

There aren't many people who get the chance to analyze venture capital fund return data. Sounds like a huge amount, but only later does he say that only " 476 funds which had known Net IRR values, the overwhelming majority of which were from vintage 2002, or more recently." Analyzing venture returns without even looking at the 90's? Looking at interim IRRs of young funds, especially during boom periods in venture isn't predictive of outcomes.

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The State of Cleantech Venture Capital: What Lies Ahead

Secret Formula

In late 2011 I decided to write up an internal analysis I’d done at Venrock about the state of cleantech venture capital and make it available broadly. What’s happening to cleantech venture capital? Philanthropic capital.

Will Crowdfunding Crowd Out Venture Capital?

ReadWriteStart

Venture capitalists have been getting a black eye to go with their blue shirts. The next day, Fred Wilson, general partner at Union Square Ventures and prominent VC blogger , suggested that a flood of crowdfunding money unleashed by the JOBS Act could sweep away venture capitalists altogether.

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.". I''ve never really debated people on why they want to get into venture in the first place, even though a lot of people have misconceptions of it.

Venture Capital Access Program launches to aid women and diverse entrepreneurs

David Teten

VCAP© Addresses the Gap between Venture Capital and Funding for Women and Diverse Entrepreneurs. The National Association of Investment Companies (NAIC) is the trade association representing women and diverse private equity and venture firms. New York Policy Venture Capital

Beer Kegs and the Future of Venture Capital: What It Means for Entrepreneurs

Genuine VC

Last September I wrote a post outlining my view of the venture capital industry: increasingly evolving like the beer industry as it continues to mature. And much like the emergence of microbreweries specializing in craft beer, new Micro VCs (disclosure: like my own firm NextView Ventures ) are thriving by specializing along at least one or more of these three dimensions (geo, sector, stage) with a unique offering for a specific subset of entrepreneurs.

Unicorpse

Feld Thoughts

From section #6 in Aileen’s post: “Given how much capital our private companies have raised in the past few years, most likely have cash to fund 2-4+ more years of runway. Venture capitalist Marc Andreessen warned in a tweetstorm that startups with high burn rates would “vaporize.”

Why VCs Should Recycle Their Management Fees

Feld Thoughts

Understanding what “recycling management fees” means is a fundamental part of understanding the economics of a venture firm. The advantage, for all the investors (the VCs and their LPs), is that $100m gets put to work as invested capital, rather than just $85m.

Venture Capital Term Sheets: Conversion Rights

Scott Edward Walker

Introduction This post originally appeared as part of the “ Ask the Attorney ” column I am writing for VentureBeat ; it is another installment of my ongoing series regarding venture capital term sheets. Similarly, founders should push for “gross” (not “net”) proceeds and an amount in the range of $10-15 million; or, even better, “for a total offering of not less than [$10-15] million (before deduction of underwriters’ commissions and expenses).”

The 99: How the SEC protects you from venture capital returns.

This is going to be BIG.

Take venture capital, for example. To benefit from the explosive growth of companies like Uber, Airbnb, Dropbox, etc, you had to fit in either one of two categories: be an angel investor already in an inner circle of experienced angels and entrepreneurs, largely located in Silicon Valley, or be an investor in a venture capital fund that backed those companies. Below that and they need to keep you from investing in really risky stuff, like venture capital.

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.  It was inspired by an observation that only 14% of the fastest growing 500 companies in the US were venture backed according to Carl Schramm. Carl Schramm talking about US innovation and venture capital.

Cotendo Raises $12 Million To Improve Speed and Content Delivery on the Net

VC Cafe

T enaya Capital led a $12 million C round in Israeli start up Cotendo, joined by current investors Sequoia Capital and Benchmark Capital. We look forward to using this new capital infusion to drive further rapid growth.&#.

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Venture Capital Survey - Silicon Valley Fourth Quarter 2010

Recent Buzzes - VC Experts, Inc.

Background - Fenwick & West LLP analyzed the terms of venture financings for 95 companies headquartered in Silicon Valley that reported raising money in the fourth quarter of 2010. The Fenwick & West Venture Capital Barometer showed an average price increase of 61% in 4Q10, up sharply from 28% in 3Q10. Detailed results are as follows: Venture Capital Investment.? Venture capitalists invested $7.6 venture-backed companies in 4Q10 totaled $10.5

Profitless Prosperity

A VC : Venture Capital and Technology

Amazon had negative net income in 2012 and pretty much zero net income this year to date. Workday hasn't made any profits in the last four years , in fact the net losses have been increasing.   MBA Mondays Venture Capital and Technology If a Company is making huge profits this year but will not make any profits in the future, it is worthless in the eyes of an investor.

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Investing in Venture Capital - Limited Partner or Fund of Funds? - Part 2

Recent Buzzes - VC Experts, Inc.

By Igor Sill, Managing Director of Geneva Venture Management LLC. Venture capital enables and to a great extent, propels this entrepreneurial innovation. A top tier Venture Capital firm will utilize extensive analytical techniques to evaluate and compare each investment prospect.

The State of Cleantech Venture Capital, Part 2: The Investors

Secret Formula

tl;dr: There’s a widespread perception that cleantech venture capital must be tanking compared with VC overall. In yesterday’s post , we looked at the amount of capital that’s been invested in cleantech start-ups to date. For venture-backed companies overall, it’s 9.4

IPO 8

What If Web And Mobile Apps Are Like TV Shows?

A VC : Venture Capital and Technology

Companies are worth the net present value of their future cash flows. Venture Capital and Technology Web/TechI was having lunch with a veteran of the entertainment and the video game business this past week. It was an interesting and wide ranging chat. One of the things we discussed that stuck in my mind was the thought that web and mobile apps might behave more like TV shows than traditional software applications.

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Some Thoughts On The SEC's Rulemaking On General Solicitation

A VC : Venture Capital and Technology

This legislation was designed to make it easier for small businesses in the US to raise capital and contained a number of important and valuable changes to securities laws. First and foremost, if you want to use General Solicitation, you must limit your investors to accredited investors (investors that satisfy net worth or annual income requirements) and you must undertake some specific efforts to make sure that your investors are in fact accredited.

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Why I'm Rooting For Google+

A VC : Venture Capital and Technology

And that list of social nets will grow longer in the next few weeks. Developers like Zynga benefit from having multiple large social nets to build on top of. Venture Capital and Technology Web/TechThe day Google+ launched, I sent a friend at Google who was involved in building the service an email requesting an invite. I got the invite late that day and started playing with the service. Here's my profile.

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2012: The Year That Movements Go Mainstream?

A VC : Venture Capital and Technology

The idea of a distributed social net that is not controlled by any company or institution has been around for a while. Politics Venture Capital and Technology WeblogsI returned from ten days of skiing with my family last night. I'm on mountain time and plan to stay there until the new year. Staying up late and sleeping late seems to be a good way to bring in the New Year. But even so, my version of sleeping late is getting up at 8am.

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The Dangerous Seduction of the Lifetime Value (LTV) Formula

abovethecrowd.com

Lifetime value is the net present value of the profit stream of a customer. advertising Internet Uncategorized Venture Capital Web/Tech LTVMany consumer Internet business executives are loyalists of the Lifetime Value model, often referred to as the LTV model or formula. This concept, which appears on the surface to be quite benign, is typically used to compare the costs of acquiring [.].

Protecting The Safe Harbors Of The DMCA And Protecting Jobs

A VC : Venture Capital and Technology

The tech industry, led by startups, have created all the net new jobs in the past five years. And venture capitalists will think more than twice about putting $3mm of early stage capital into startups if they know that the vast majority of the funds will go to pay lawyers to defend the companies instead of to hire engineers to create and build product. Politics Venture Capital and Technology

IP 117

Sticking With The Struggling Investments

A VC : Venture Capital and Technology

One of the hardest things to do in the venture business is to stick with a struggling investment. They need more capital, they need recruiting help, and sometimes they need strategy and advice. And we will do that again on Thursday when they head out to Brooklyn to play the Nets. NYC Sports Venture Capital and Technology My friend Bijan tweeted this last week: One of the hardest things to watch is a company having an identity crisis.

Investors Beware: Today’s $100M+ Late-stage Private Rounds Are Very Different from an IPO

abovethecrowd.com

As another example, consider that most public marketplace companies, such as ebay or GrubHub, report revenues on a “net” basis rather than gross (approximately 80-90% of revenues go to supplier partners, so this is the proper conservative representation).

IPO 62

What I'm Reading This Sunday Morning

A VC : Venture Capital and Technology

The Money Quote: The answer is that efficiency innovations are liberating capital, and in the United States this capital is being reinvested into still more efficiency innovations. When the doctrine emerged in stages between the 1930s and the ‘50s, capital was relatively scarce in our economy. So we taught our students how to magnify every dollar put into a company, to get the most revenue and profit per dollar of capital deployed. Venture Capital and Technology

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My First Experience As A Venture Capitalist

Feld Thoughts

I often get asked how I ended up becoming a venture capitalist. When people ask me how they can become a VC, I point them to my partner Seth Levine’s excellent blog posts How to become a venture capitalist and How to get a job in venture capital (revisited). At one point in the process, I was down to under $100,000 in the bank – with the vast majority of our net worth tied up in these angel investments and a house that we bought in Boulder.

Corporate innovation will harness the power of entrepreneurs

The Equity Kicker

Apple has $160bn of net cash and has paid $153bn to shareholders, for a total of $313bn. US Jon Bradford, founder of Techstars UK, once said to me that corporate innovation budgets dwarf venture capital. That compares with $86.7bn in global venture capital investment in the same year. Exits Venture Capital US private tech funding 2006-2015: $258bn (real). — Benedict Evans (@BenedictEvans) January 27, 2016.

What is the Definition of a Seed Round or an A Round?

Gust

There weren’t a lot of seed funds in 2007 so this was often done by angels, funding consortia or sometimes early-stage funds that existed then (First Round Capital, True Ventures, SoftTech VC, etc.). If you have raised $2-4 million from a bunch of high-net-worth individuals I simply don’t see it as an A-round. I think an easier definition is “first institutional capital” which is what most A-round VCs think about what their personal funding strategies are.

How This Entrepreneur Raised $28,000 Using Airbnb to Fund Her Startup

Both Sides of the Table

She hasn’t raised any venture capital. In one year of Airbnb Tracy netted more than $28,000. Launchpad LA Startup Advice This Week in Venture CapitalTracy DiNunzio isn’t your typical Silicon Valley startup founder.

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On the Road to Recap:

abovethecrowd.com

In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “ The Age of the Unicorns ” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.” All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. Competition also has access to capital.

How to Impress Angel Investors and Make It into “Startup Heaven”

Up and Running

Before I jump in and share the secrets of how to impress angel investors, I should tell you what an angel investor is, and how they differ from venture capitalists. Angels vs. venture capitalists. Angels differ from venture capitalists in many ways.

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.  It was inspired by an observation that only 14% of the fastest growing 500 companies in the US were venture backed according to Carl Schramm. Carl Schramm talking about US innovation and venture capital.

Conversion: The Most Important Internet Metric of All (Revisited)

abovethecrowd.com

No other metric so holistically captures as many critical aspects of a web site – user design, usability, performance, convenience, ad effectiveness, net promoter score, customer satisfaction – all in a single measurement.

Venture Capital Survey Silicon Valley Second Quarter 2011

Recent Buzzes - VC Experts, Inc.

Background Fenwick & West LLP analyzed the terms of venture financings for 117 companies headquartered in Silicon Valley that reported raising money in the second quarter of 2011. The Fenwick & West Venture Capital Barometer showed an average price increase of 71% in 2Q11, up from the 52% increase registered in 1Q11. The second quarter of 2011 was generally a strong quarter for the venture capital industry, with the most notable result being an improved IPO market.

The Mutual Company

A VC : Venture Capital and Technology

This has the net effect of centralizing wealth and limiting overall economic growth.” marketplaces Venture Capital and Technology Web/Tech I remember a time when I was growing up when many of the savings banks and insurance companies were mutual companies. A mutual company is one where the customers own the company, more or less. It seems like the concept lost favor and many of these banks and insurance mutual companies were " demutualized " in the 80s and 90s.