Why The SBIC Doesn’t Work For Venture Capital Anymore

Feld Thoughts

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. Peter Adams, head of Rockies Venture Club, is quoted a few times.


What to Expect When You're Expecting Venture Capital Returns

This is going to be BIG.

One of the first things I did when I joined the venture asset class as a lowly institutional LP analyst in 2001 was to build the VC fund cashflow model. And no, the numbers don't exactly add up--but they're more than close enough for venture capital.

Trending Sources

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.

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. You don’t have to look very far to see some remarkable companies that survived and transcended the Internet bubble collapsing in 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.

Zhongguancun in Beijing – China’s Silicon Valley (Part 4 of 5)

Steve Blank

The previous post described the evolution of the Chinese Venture Capital system. China Venture Capital. If it’s driven by profit then the ecosystem needs both entrepreneurs as well as Venture Finance. China has the biggest Venture Capital industry outside the U.S.

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.

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. Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed.


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. We shuttered Flatiron in 2001 and I took over the entire portfolio with the help of Jerry and Bob. I do not believe that venture capital scales. Venture Capital and Technology Web/Tech

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Venture Capital In Finland In 2010


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.

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.

Valuations 101: Scorecard Valuation Methodology


Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. Experience proves that half of these companies will fail (returning nothing or less than capital invested), another 3-4 will provide a modest return on investment of 1X to 5X and one or hopefully two of the ten companies will return 10X to 30X on the initial investment over a five to eight year period of time. – Need venture capital.

Interview with eFounders

Cracking the Code

I began my career at McKinsey and when the Internet bubble burst in 2001, I made a shift towards online software (ASP at the time). Fundraising SaaS Venture Capital

API 13

Gerardo Miguel Rosenkranz

A VC : Venture Capital and Technology

We sat at the corner of the huge conference table in Chase Capital Partners' main conference room and Jerry drilled down on our firm, fund, and approach to investing. Jerry, Susan Segal (Chase Capital's Latin American investment head) and I went on to build a portfolio of about a dozen leading latin american Internet companies in the late 90s. It ended painfully and I've not ventured back to latin america (from an investing point of view) since 2001.

The Other Amazon Deal this week. Drupal founder attracts over $100 Million in 3 months.

Scalable Startup

Drupal was launched in 2001, and Acquia started in 2007. Angel Investor Drupal founder PHP Revenue Growth SaaS Scalability startup startup CEO venture Cash Flow CEOing leadership scalability tom nora venture capital As further market proof of the power of Drupal in the enterprise, Acquia has received about $100 million in funding in the past 3 months, which puts its valuation at over $1 billion. link].

Teva Launched Corporate Venture Arm to Invest in Biomed [Guest Post]

VC Cafe

Last month, Teva Pharmaceuticals , has announced the launch of a corporate venture capital fund. In a recent Business Strategy Review article, London Business School professor Gary Dushnitsky notes that corporations across a wide array of industries are adopting a venturing approach.

Presenting Companies at the 2008 Florida Venture Capital Conference

Florida Venture Blog

The following companies were selected to present at the 2008 Florida Venture Capital Conference. Formed in 2001, Advantica EyeCare currently provides eye care services to over 2,000,000 lives in the Mid-Atlantic and Southeast on a risk basis.

Venture Capital Deal Buzz: Glaukos

Recent Buzzes - VC Experts, Inc.

Thanks to venture capital, there may be a new way to treat, or possibly even cure, glaucoma. million in equity from venture backers since it was founded in 2001. That value is a 35% increase over its value in its previous round of venture funding, a $35 million Series D raised in August 2008. For detailed information on rounds of funding for Glaukos Corporation and other venture-backed companies, subscribe to VC Experts Valuation & Deal Terms Database

They Can’t Kill You And They Can’t Eat You

Feld Thoughts

It’s the summer of 2001. By breakfast in the summer of 2001, the stock was trading under $1 / share. In addition to my role as co-chairman of Interliant (Len was my co-chairman), I was also a partner at Mobius Venture Capital, sitting on over 25 boards, including five non-US companies. His last company – the one he built with Jerry Poch that had acquired my first company – was bought in 1996 by GE Capital for $500 million.

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Time is the Enemy of All Deals

Both Sides of the Table

It quickly became impossible to raise venture capital. I lived through this again September 2001. It isn’t even a story about raising venture capital or M&A. It quickly became impossible to raise venture capital.

ProfessorVC: The Most Important Venture Capital Statistic

Professor VC

The Most Important Venture Capital Statistic. A couple of headlines caught my eye in this mornings VentureWire : Deals Slow As VC Feels Economic Chill Web Video Platform Fliqz Gains $6M In Series C Funding The funding news and general condition of the economy has been no secret and certainly wasnt a surprise that venture funding in the fourth quarter was the lowest level in four years and most expect the decline to continue at least through the end of 2009. Venture Hacks.

Web 0

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. I spent the day yesterday doing Denver Startup Week stuff.

What is the Right Amount of Money to Raise at a Startup?

Both Sides of the Table

This is part of my ongoing series on Raising Venture Capital. Recently I’ve been debating with a number of young startup companies that are raising money in the next few months, “what is the right about of capital to raise at a startup?&#.

Whither Venture Capital– A Constructive Perspective from the Kauffman Fellows Program

Pascal's View

There is plenty of ink flowing with speculation on the future of the venture capital industry. First, that entrepreneurial capital is about enabling scale, and the value we deliver as an industry is much the same at any stage or in any environment.

Market Truths


If you doubt that, take a look at the following chart I spotted on Twitter today: I’m long term bullish on technology which is why I run a venture fund. As someone who invested through the 2001 and 2008 crashes I can assure you that down rounds and fire sales are not fun for anyone involved.

Try On The Decision For 30 Days

Feld Thoughts

In 2003 I seriously thought about quitting Mobius Venture Capital. My whole world blew up in 2001. I’ve made a lot of major decisions in my life – both personal and professional. For the professional ones, I’ve come up with an approach that I now use consistently. I try on the decision for a period of time – the more significant the decision, the longer the period of time. For the really major decisions, I try them on for 30 days.

Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

In my first company I had to raise money in April 2001 or die. Otherwise, what incentive exists for the VC to put in more capital or to have the founders earn money. Tags: Pitching VCs Start-up Advice VC Industry startup technology vc venture capital This is part of my ongoing series “ Start Up Advice &# but I’d really like to call this post, “VC Advice.&#.

Startup Communities: Creating A Great Entrepreneurial Ecosystem In Your City

Feld Thoughts

The Internet Bubble (2001 – 2002). Complaining About Capital. Venture Capital Matters. I’m deep into writing my latest book. For now, the title is “ Startup Communities: Creating A Great Entrepreneurial Ecosystem In Your City.” ” I’m open to different titles – if you’ve got ideas just put them in the comments. Following is the current table of contents.

7 Attributes of An Entrepreneur's Startup Dream Team

Startup Professionals Musings

There is a common belief in the angel and venture capital community that you put your money on the best team, rather than the best idea.

Spolsky on Software on Both Sides of The Table

Both Sides of the Table

Lesson: Joel had been building a community of readers since 2001. With StackOverflow, Joel raised money through venture capital. Union Square Ventures is an investor. Startup Advice This Week in Venture Capital

Entrepreneurs are Everywhere Show No. 35: Jessica Mah and Peggy Burke

Steve Blank

Especially difficult were the days after the Internet bubble burst: 2001 was a staggering blow to technology. I started working with startups and venture capitalists.


A VC : Venture Capital and Technology

Kozmo shut down in early 2001 and has been gone for over fourteen years. My prior venture capital firm provided much of the early capital to Kozmo and we wrote off something like $25mm or $30mm when it went up in flames.

Disrupting VC


As a venture capitalist, I am always looking for highly innovative, disruptive businesses. I talked about creative disruption and how many significant companies would be formed as a result of this (not dissimilar to what I saw in Silicon Valley while investing post 2001 crash). Now we have an overabundance of capital at that stage. It was important for me to affiliate with a fund with enough capital to bridge this gap and provide support to local NYC startups as they grow.

Retro: My Favorite Blog Post on Raising VC

Both Sides of the Table

I had previously raised VC in 1999, 2000, 2001 and 2005. On December 3rd Brad Feld wrote a one paragraph blog post titled “ Raising Venture Capital &# in which he linked to my blog. The Original Post (after the jump): Venture Capital, By Mark Suster (December 2nd, 2006). I don’t plan to write the authoritative venture capital blog, just some anecdotes. Thus is venture capital. Thus begins the venture capital dance.

Zhongguancun in Beijing – China’s Silicon Valley (Part 4 of 5)

Steve Blank

The previous post described the evolution of the Chinese Venture Capital system. China Venture Capital. If it’s driven by profit then the ecosystem needs both entrepreneurs as well as Venture Finance. China has the biggest Venture Capital industry outside the U.S.

Entrepreneurship Surges

Inc Startups

Despite a drop in venture capital investment in the third quarter, venture capitalist Jeff Bussgang says he is seeing a surge in entrepreneurial activity. The amount of money invested through venture capital in third quarter was $6.95

Making Sense of the Stock Market Drops in Relation to Venture Financing

Both Sides of the Table

I’ve seen friends (and family members) lose much of their savings that way over the years because “Black Swans” happen and in 1987, 2001, 2003 & 2008 (just to name a few from my memory) huge market gyrations caused much financial distress to people seeking short-term gains.

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VC Investment Reaches Highs Not Seen Since Dot-Com Bubble

Inc Startups

If you somehow have any doubt that the venture capital business is booming, the most recent quarterly report from CB Insights should put them to rest. Unfortunately, that same venture capital data is also making it harder to argue that we''re not in some sort of bubble.

What the current market are and are not telling us

Seth Levine's VC Adventure

We saw this clearly in the housing market when the access to cheap capital created run-away housing prices that weren’t sustainable by any historical measure of actual underlying value. I’d differentiate this from what we saw in 2008 in the private markets where prices contracted – in some cases relatively dramatically – but where there wasn’t a true bubble bursting in the way we saw in 2001.

Reading what was written and the VC age question

This is going to be BIG.

For a solid six or seven minutes, I was pretty pissed at Fred Wilson for his last post on the age of venture capitalists. he's only been in venture for two years and only through one market, an up one!" I've been in venture capital (with the exception of a year in product management and two years as an entrepreneur) since 2001, when I started doing late stage venture and fund investing at a big financial institution. Venture Capital & Technology