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Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

More often than not the results of these acquisitions are disappointing. The goal is to get a corporate investment or an outright acquisition of the startup. VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup.

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State of VC 2.0

View from Seed

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. So, four years later, DPI is still trying to catch up with TVPI from 2017. So, what does the future hold?

Valuation 319
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article thumbnail

State of VC 2.0

View from Seed

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. So, four years later, DPI is still trying to catch up with TVPI from 2017. So, what does the future hold?

Valuation 295
article thumbnail

State of VC 2.0

View from Seed

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. So, four years later, DPI is still trying to catch up with TVPI from 2017. So, what does the future hold?

Valuation 156
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How to Scale Support of Portfolio Companies

David Teten

Most importantly, we have regular meetings with later-stage VCs and enterprise clients both in the US and internationally to discuss our companies which fit their investment mandates. Effectively, we are a market maker between our portfolio companies and the late-stage VCs and large enterprises which are our co-investors.

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Turing Distinguished Leader Series: With Partner David Zhang, TVC

ReadWriteStart

The vast majority of their customer acquisition is word of mouth. When you put those two things together, you get high-quality customers, high LTV, and acquisition at super low costs. And you know, a cost goes out with an acquisition, so whether it’s hiring a salesperson, commissions, or paying Google. David Zhang.

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As Populist as it May Feel, 98% of VCs Aren’t Dumb

Both Sides of the Table

As you can see from the chart their data suggests there are about $25 billion of VC distributions per year in the US. But the larger funds usually have lower returns because they are often investing bigger dollars at later stages with less risk and therefore lower returns. This happens at acquisition time, too.

LP 374