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.

Forecasting in venture capital

The Equity Kicker

I made my first mobile internet investment in 2000 in a business that was years ahead of it’s time helping banks to get their services on WAP phones. Good VCs need to be good forecasters. We need to predict which companies are going to succeed and second guess future trends so we can develop our firms to stay ahead of the curve.

Trending Sources

UK venture deal volume surpasses 2000 peak

The Equity Kicker

Yesterday Stuart McKnight/Ascendant Corporate Finance published their regular report on activity in the UK venture market. By Ascendant’s numbers, in 2016 £2.6bn was invested in the UK and Ireland, up 76% on the £1.5bn invested in 2014, but still well below the 2000 peak of £3.5bn.

Why The SBIC Doesn’t Work For Venture Capital Anymore

Feld Thoughts

Each of the SBIC funds were raised in the 2000 – 2002 time period. 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. If you want to see a fun quote on it, read A History of Silicon Valley which quotes: “ …many venture capital pioneers think the SBIC program did little to advance the art and practice of venture investing.

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Venture Capital Spending Hits Highest Level Since 2000

Inc Startups

Worried the bubble's about to burst, startups are raising money at a furious rate, new data shows

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

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. About three-quarters of venture-backed firms in the U.S. backed by venture capitalists. High Capital Franchises. Capital Available.

10 Reasons For Joining The New Startup Wave Now

Startup Professionals Musings

Last year was the most active year for IPOs in the United States since 2000. angel investors business entrepreneurs startup wave venture capital

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The Role Venture Capital is Playing in Online Schooling (Guest Post)

VC Cafe

Venture capital and other forms of seed funding have been crucial for the development of the best online colleges. A Wall Street Journal piece from April 2012 reports on the impact of $16 million in venture capital awarded to Coursera to increase the scope of the program.

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. 2000 to 2005: Bubble fumbling. Numbers The State of Cleantech VC 2011 Venture capital

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

Feld Thoughts

I learned this lesson 127 times between 2000 and 2005. 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.

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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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. We stopped investing at Flatiron Partners in the summer of 2000, twelve years ago. Venture Capital and Private Equity are "long latency" businesses. Politics Venture Capital and Technology

Venture Capital Q&A Session

Both Sides of the Table

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about.

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.

1985: Oil Prices Will Go Up Forever

Feld Thoughts

In the Internet bubble, while I kept this lesson in the back of my mind, I ended up suspending disbelief, like so many others, in 2000 and into the spring of 2001. 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. I showed up at MIT as an eager freshman. I was 17, from Dallas, with a nice pair of cowboy boots and long hair.

LiveOak Venture Partners Sees Lots of Quality Startup Deals in Austin and Texas

SiliconHills

By LAURA LOREK Founder of Silicon Hills News Right now is the best time to be in the venture capital business in Austin. In 2000, during the Dot Com boom, an enormous amount of money flowed into companies even though they did not have viable ideas and were also not disciplined with spending money, said […] The post LiveOak Venture Partners Sees Lots of Quality Startup Deals in Austin and Texas appeared first on SiliconHills.

Making sense of the bubble talk and the impact on startups

The Equity Kicker

” (although he did also point out that if companies need to raise money then the capital markets can affect them). I saw that in 2000 and then again in 2008. Startup general interest Uncategorized Venture Capital

Venture Capital In Finland In 2010

ArcticStartup

In our previous story with Nexit Ventures we talked about how 2010 was a good year for venture capital in the US. This time, we're digging into the state of the venture capital industry in Finland. In 2010 the average venture capital investment was 650 000 euros.

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. The VC industry went through a phase post 2000 where there was a shift in some early stage firms to mid and later stage investing as well as a phase in the late 1990′s where early stage firms created growth funds to augment their early stage strategy. Venture Capital hedging risk vc

New Rules for the New Internet Bubble

Steve Blank

August 1995 – March 2000: The Dot.Com Bubble. After the dot.com bubble collapsed, venture investors spent the next three years doing triage, sorting through the rubble to find companies that weren’t bleeding cash and could actually be turned into businesses. Technology Venture Capital

The Rise & Fall of Great Venture Firms [Part 1] ? AGILEVC

Agile VC

The Rise & Fall of Great Venture Firms [Part 1]. I happen to be fascinated by the history of the VC industry, and one of the things we discussed at a recent offsite are the common threads behind the rise and fall of great venture capital firms.

How to Miss By a Mile: An Alternative Look at Uber’s Potential Market Size

abovethecrowd.com

by 2000. android ecommerce Internet iphone IPO marketplaces Mobile Payment Regulation Twitter Uber Uncategorized Venture Capital Web/Tech Analysis Errors Sharing Economy TAM UberX

Venture investment was down in Q4 but may have further to go

The Equity Kicker

As you can see from the chart above even though the $11.3bn invested in Q4 was 32% less than the $16.6bn invested in Q3 it was still higher than all bar five quarters since the 2000 bubble burst. Venture Capital

Israeli Venture Capital Fund Raising 2010

Recent Buzzes - VC Experts, Inc.

Additional details about venture capital fund raising will be available in the IVC 2011 Yearbook , due for release in April. Despite improvement in macro economical factors in 2010, Israeli VC funds were not able to attract new capital during the year.

The two reasons early stage investors should be active investors

The Equity Kicker

Twenty years ago 3i dominated venture capital in the UK with a very low touch model. Transparency provided by the internet makes this true at all stages, but it’s especially true at the earliest stages where capital requirements have declined precipitously.

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

abovethecrowd.com

Over 13 years ago, in March of 2000, I wrote a blog post titled “ The Most Powerful Internet Metric of All. ” advertising android Internet iphone Mobile Uncategorized Venture Capital Web/Tech Conversion Customer Acquisition Metrics Optimization

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.

Are You the Fool at The Table?

Steve Blank

Ben offers that as Apple, Google and Amazon survived the dot.com crash, we can ignore the fate of the thousands of failed public and private dot.com companies when the bubble burst in March of 2000. Filed under: Venture Capital. Venture Capital

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Stock Market Bubble? Venture Capital Numbers Tell Another Story

Inc Startups

Venture capital investment helped drive the last stock market bubble. The index ruled out the anomaly of the 2000 stock market.) 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 capital firms invested $29.5

The danger of over-funding and herd investing

The Equity Kicker

Instead I’m going to highlight his warning about what happens when markets get over-funded: Loose capital allows the less qualified to participate in each market. I first noticed it in late 2000 when the fund I was working for was invested in one of six high profile and highly funded enterprise portal businesses. Venture CapitalI’ve just found time to read Bill Gurley’s On The Road To Recap.

Enough with the unicorn bashing

The Equity Kicker

There is clearly dysfunction in chasing growth at all costs – inherently unprofitable companies grow to employ thousands of people before going bust, resulting in much personal anguish and not a little wasted capital. However, that’s a cyclical dysfunction which hit notable peaks in 2000 and 2015 and which needs to be understood as an unfortunate part of a larger system which overall has been an incredibly positive force for good.

Clouds on the horizon

The Equity Kicker

Through much of last year there was talk of a bubble in venture capital, particularly in late stage investments. Information flows slowly in the venture world, at least compared with public markets, and changes like this take time to play out. Worse from a venture perspective is that GoPro and Fitbit have both seen huge falls in their share prices recently, adding concerns about exit potential in specific categories to fears about the market generally. Venture Capita

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What every entrepreneur should know about financing right now

Version One Ventures

We have all heard about the Series A crunch in the Valley (there might actually be up to 2000 companies in the Series A pipeline right now), and perhaps there’s a Series B crunch now too. You need to assess early on if your business is venture-fundable. The post What every entrepreneur should know about financing right now appeared first on Version One Ventures. News Angel investor AngelList Bootstrapping funding Seed money Series A round Startup company venture capital

Interpretative Intelligence

thebarefootvc

According to a recent Cisco report, last year’s mobile data traffic was nearly 12x the size of the ENTIRE global Internet in 2000. Entrepreneurship Mobile Startups Technology Venture Capital interpretative intelligence Social Entrepreneurship technology

Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

So in 2011 as a startup company if you can generate lots of demand you can definitely raise an A round of capital (say $3 million) at a $7 or 8 million pre-money valuation or slightly higher whereas just two years ago you would have struggled. It was early 2000.

The State of Cleantech Venture Capital, Part 3: The Companies

Secret Formula

Most cleantech start-ups require a lot of capital. On one hand, she wants to raise capital at a high valuation to minimize dilution. at which capital was raised. A venture investor, in hindsight, would want to get in just before the pop.

The Right Time + The Right Team + The Right Technology

Eric Friedman

This is certainly not all inclusive, but it helps me outline the key points that I think must be overcome by an early stage team to convince an outside party to invest their capital in their company. There was also no hardware to make small videos at the same pace as the mid 2000’s.

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‘Capital Efficiency’ doesn’t exist

K9 Ventures

When I started K9 Ventures, I did so based on a specific investment thesis which had a clear set of investment criteria. One of those criteria was ‘Capital Efficiency.’ In fact, when starting K9 I used my own startups as an example such capital efficiency.

This Week in Venture Capital – Episode 2

Both Sides of the Table

I was on This Week in Venture Capital (TWiVC) again this week with Jason Calacanis. I don’t believe that search is the only answer in 2010 as it was in 2000. 10 million in Series B Menlo Ventures , Steamboat.