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. The key reason for the explosion in capital flowing into the industry, and therefore the large increase in practitioners, had nothing to do with 1970’s performance, early stage investing, or technology. Continental Capital*. $ 250,000. KPC&B II. $ 775,000.

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. They are, in fact, great news for traditional venture capitalists. The most successful of these businesses will still need venture capital to scale their businesses.

Trending Sources

Love and Venture Capital

Feld Thoughts

eThread was acquired by Melita International in 1999 after a crazy ride that included a midnight negotiating session on the 173rd floor of some building in midtown Manhattan to try to merge with iChat. Welcome to 1999. The post Love and Venture Capital appeared first on Feld Thoughts. Venture Capital fred wilson Jerry Colonna podcast rebootIf you’ve missed me, it’s because I spent a week in Australia.

Are Things Moving Faster Than In 1999?

Feld Thoughts

After I sold my first company, I started a company called Intensity Ventures to make all my personal investments from. When I started making venture capital investments in 1997, the pace of things, and the amount of work I did, was massive. In 1999 things were moving so theoretically quickly that everything was a total blur. The post Are Things Moving Faster Than In 1999? I spent the day yesterday doing Denver Startup Week stuff.

B is for BUBBLE: Venture Capital in 2013

VC Cafe

Last year, the VC industry partied like its 1999. Danny Cohen, Partner at Carmel Ventures and keynote speaker at the upcoming Marketing & Ad;Tech Israel conference, discusses three trends impacting 2014 Israeli digital media: Content Marketing, Next-Gen Publishing and Mobile Advertising.

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.

Why Venture Capital No Longer Defines Innovation

ReadWriteStart

Today’s venture capital deal flow to innovative new companies looks a lot like a fat man trying to squeeze into a slim Italian suit. In 2000, venture capitalists poured a staggering $112.2 Today, venture capital deal flow has slowed to a relative trickle, just $28.4

Bubble watch: a comparison of 1999 and 2013

The Equity Kicker

The data points below show that in terms of the IPO market at least the heat is nothing like what it was in 1999. Median sales of company at time of IPO — $12m in 1999 vs. $106m in 2013. in 1999 vs. 5.5x Total # of tech IPOs — 369 in 1999 vs 45 in 2013. billion in 1999 vs $8.5 Average first-day stock price increase at IPO — 81% in 1999 vs 20% in 2013. Total venture capital dollars raised — $55 billion in 1999 vs $17 billion in 2013.

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What if it’s 1996, not 1999?

Seeing Both Sides

billion market capitalization. In 1997, a Charles River Ventures fund yielded a stunning 15x return, backing such superstars as Ciena, Vignette and Flycast. The average venture capital fund raised between 1995 and 1997 returned more than 50% per year.

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More Advice from Class of 1999 MBA Entrepreneurs

Launching Tech Ventures

Launching Tech Ventures This blog collects student, guest, and instructor posts from Launching Technology Ventures, a Harvard Business School MBA elective course that examines lean startup management practices. In fact, one could argue that it is harder today than it was back in 1999.

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The State of Cleantech Venture Capital, Part 1: The Money

Secret Formula

I’ve heard it said more than once in the past month that venture-backed entrepreneurship clearly isn’t working here, so maybe we should all pack our bags and go home. During each, cleantech start-up investment had a different driver: 1995 to 1999: Baseline.

History Doesn’t Repeat Itself, But It Does Rhyme

Feld Thoughts

The questions were great, but some of what they were hearing about venture capital was scary as s**t. A handful of them had jobs in venture capital firms and we talked about how to be effective as a freshly minted associated. If you do a bunch of shitty momentum deals as fast as you can, you are simply emulating what most VC firms (including the one I was part of) did in 1999 when we committed an entire $600 million fund in nine months.

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

Feld Thoughts

I started investing in 1994 and while there was some bumpiness in 1997 and again in 1999, the real pain happened between 2000 and 2005. I watched, participated, and suffered through every type of creative financing as companies were struggling to raise capital in this time frame. First, make sure you know where the capital is going to come from to fully fund your business. Second, keep your capital structure simple. Venture Capital cap table down round Financing VC

When VCs Don’t B t You

Feld Thoughts

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. Fred Wilson at Union Square Ventures was by far the most helpful. Over 33% of our capital ended up being from the same LPs who invested in USV.

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No Regrets (Mostly): Reflections from Class of 1999 MBA Entrepreneurs

Launching Tech Ventures

Launching Tech Ventures This blog collects student, guest, and instructor posts from Launching Technology Ventures, a Harvard Business School MBA elective course that examines lean startup management practices. Venture Hacks VentureBeat Watching Websites Simple template.

Partners Forever (or close to it)

A VC : Venture Capital and Technology

Mitt Romney is taking some flack for continuing to have ongoing involvement in Bain Capital well after he supposedly left the firm for good in 1999. I am still technically a partner in a venture capital firm (Euclid Partners) that I left in early 1996. Venture Capital and Private Equity are "long latency" businesses. Politics Venture Capital and Technology

Lean

A VC : Venture Capital and Technology

Later on in our conversation on wednesday night, I got a question about lean and venture capital. Brad and I set it up that way because we talked about all the things we didn't like about venture capital firms when we were setting USV up in late 2003. In mid 1999, we went on a binge, raised a huge fund ($350mm), moved into a massive office, hired a staff of 25, made investments we weren't engaged in, and got fat. Venture Capital and Technology Web/Tech

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Andreessen Horowitz: No bubble but rebalancing from IPO to late stage venture

The Equity Kicker

Firstly this table comparing 1999 and 2014 on key bubble-related metrics. That makes sense, but it looks to me as if they have less valuation discipline than we normally see in either the public markets or in smaller venture rounds. Venture Capital

Worthless Stock Certificates

A VC : Venture Capital and Technology

They are a reminder that we make mistakes in the venture business. But in the mania that existed in 1999, the company raised hundreds of millions and went on a spree opening up something like 18-20 cities. Venture Capital and Technology

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On Bubbles …

abovethecrowd.com

And the venture capital firms that pulled back in 1996 missed the best three years of return in the history of venture capital industry. What was that percentage in 1999? Internet Uncategorized Venture Capital Investing

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.

Tonight We're Going To Party Like It's 1999

Launching Tech Ventures

Launching Tech Ventures This blog collects student, guest, and instructor posts from Launching Technology Ventures, a Harvard Business School MBA elective course that examines lean startup management practices. Do you have data on total capital raised by year?

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How Do VCs Mitigate Risk In Their Investment Portfolios?

Ask The VC

Most VCs who have been investing since the mid-1990′s understand this well as many funds raised in 1999 and 2000 were fully committed in one year. As a result, the funds were invested during the rapid rise and peak of the Internet bubble, resulting in horrible performance for 1999 vintage funds due to their lack of time diversity. Venture Capital hedging risk vcQuestion: How do VCs mitigate risk in their investment portfolios?

How to Develop Your Fund Raising Strategy

Both Sides of the Table

There is all sorts of advice on the Internet about how to raise capital. I’ve raised money as a “hot company” and I’ve raised capital when no one would return my phone calls. So why would raising venture capital be any different.

Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. I told them that True Ventures had stuck to their brand name and submitted a totally clean term sheet.

China’s Torch Program – the glow that can light the world (Part 2 of 5)

Steve Blank

Torch has four major parts: Innovation Clusters , Technology Business Incubators (TBIs), Seed Funding (Innofund) and Venture Guiding Fund. Set up in 1999, Innofund offers grants ($150 – $250K), loan interest subsidies and equity investment. Venture Guiding Fund.

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The Word Bubble

A VC : Venture Capital and Technology

For me Bubble will always be inexorably linked to what went down in 1999 and 2000 in the internet sector. But deals are actually companies and most venture investments are held for five to seven years. Venture Capital and TechnologyIn all the posts over the past year or so outlining my thoughts on the financing and valuation environment in the internet sector, I've avoided using the word Bubble. It is intentional.

Stitch Fix: Reinventing Retail Through Personalization

abovethecrowd.com

In addition to market concerns, I had the unique experience of working with Dan Nordstrom and the team at Nordstrom.com in August of 1999. By building products to order rather than inventory, Dell’s inventory turns, capital efficiency, and ROIC were dramatically better than the competition.

Stock Market Bubble? Venture Capital Numbers Tell Another Story

Inc Startups

Venture capital investment helped drive the last stock market bubble. Broadly, the stock market is influenced by monetary policy," John Backus, founder and managing partner at venture capital firm New Atlantic Ventures, says. But venture capital investment tells another story entirely. venture community is nowhere near the outlandish number of deals, or outpouring of cash for investments, seen more than a decade ago.

How Many Investors are Too Many?

Both Sides of the Table

You may feel as I did in 1999 that the more smart people around the table the more intros you’ll have, the more sage advice you’ll receive and the more impressive you’ll seem to outsiders. Raising Venture Capital Startup Advice

FuturePerfect Ventures: A 2015 Recap

thebarefootvc

New York City : NYC is growing as a startup hub; yet early stage (seed, small A rounds) institutional capital has not kept up with the local growth. This global reach is a new model of early stage venture, one that we believe we will see more of in the future. I remember the heady days of 1999 when everyone believed that there were new rules to investing. The post FuturePerfect Ventures: A 2015 Recap appeared first on The Barefoot VC.

Governance Models That Don’t Scale: The World According to Charles T. Munger and Jean Jacques Rousseau

Pascal's View

The disgraced former directors of Tyco International (vintage 1999) , seemingly highly trustworthy and accomplished men and women, also come to mind. Can you name five benign dictators who have ruled successfully for any meaningful period of time (non-fiction)?

Tonight We're Going to Party Like It's 1999

Platforms and Networks

(originally published on March 27, 2011 on the Launching Tech Ventures course blog) Are we in a new bubble, as Steve Blank recently wrote, or do current high valuations for early- and late-stage consumer Internet companies reflect sound fundamentals, as argued by Ben Horowitz ?

Where are the Deals? How VCs Identify the Next Generation of Startups

David Teten

You’ve probably read dozens of articles about how to raise capital from venture capitalists. Prior to joining ff Venture Capital , I published the first-ever study of how private equity and venture capital funds originate new investments, with my coauthor Chris Farmer , CEO of SignalFire and an experienced VC. ff Venture Capital. First Round Capital. Capital.

10+ Trends: Recap of 2011 and What’s Next…

thebarefootvc

As a venture capitalist, I am privy to innovations long before they become mainstream, one of the things I love about my job. Women Rising: Microfinance institutions have known for years that women have higher repayment rates than men and that women are more likely to invest the borrowed capital back into their families and local communities. Kiva co-founder Jessica Jackley’s latest venture Profounder is one platform that could power these transactions.

Complete Flip Flop

Force of Good: a blog by Lance Weatherby

They spent a lot of time talking about how the current time is much different than 1999. The New York Timed DealBook had a nice write up on the same subject, " Investing Like It's 1999." Current Affairs Startups Venture Capital

I’m joining ff Venture Capital

David Teten

I am delighted to announce that I’m joining ff Venture Capital as a Partner. In addition, Michael Yavonditte , CEO of Hashable , is joining as a Venture Partner. Career Venture Capital

Best of Breed

thebarefootvc

Whereas I may have seen a dozen companies in 1999 with a point solution in a particular area, now I see multiples. Entrepreneurship Startups Technology Uncategorized Venture Capital cloud computing enterprise IBM internet Salesforce SAP software startups When I invested in enterprise software in the late 1990′s, I saw a proliferation of “best of breed” solutions.

Who Else Wants to Raise Venture Capital?

Growthink Blog

How can I raise venture capital?" And when it comes to venture capital in particular, the vast, VAST majority of entrepreneurs go about it the wrong way. And if you go about raising venture capital like MOST entrepreneurs do, then you'll probably get the same results that most entrepreneurs do. raised another $6 million in venture financing, for a total funding of $15 million. What are your 2 biggest questions about raising venture capital?

Brad Feld Drops Knowledge. Here’s What He Said …

Both Sides of the Table

Yeah, that was when I changed for me…” “…there was so much positive feedback on demystifying this one element of venture capital. Brad’s start in Venture Capital. Venture Capital in Boulder and other smaller communities. “So