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The Coming Brick Wall in Venture Capital & Why This is Good for US Innovation

Both Sides of the Table

With more competition in early-stage many VCs are investing smaller amounts at earlier stages. Some are going later stage to not miss out on hot deals. I call this “stage drift.&#. We all know the result of the over-funding of the asset class – poor returns in aggregate for the industry.

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How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

In venture capital in particular, early-stage companies are often operating in frontier industries, where the rules are unpredictable and conventional analytic frameworks may be misleading. The Pocket Negotiator is very early-stage attempt to aid in the negotiating process itself. . Accompany focuses on this use case.

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How to Scale Support of Portfolio Companies

David Teten

the “TOPSCAN” framework from my research study on value creation by VCs ): T eam-Building – We aggregate openings across our portfolio on our jobs page. We also have a better known brand than some of our early stage companies, so we can leverage that to help source talent. Ethics Policy, Expenses policy).

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On Funding?—?Shots on Goal

Both Sides of the Table

If you’re a later-stage fund that comes in when there’s less upside but a lower “loss ratio” you might have only 8–12 investments in a fund. Another 3–5 could return in aggregate $300–500 million. Early-stage venture capital is about extreme winners. The right number of deals will depend on your strategy.

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Intellectual Property for Startups in the Real World

Gust

Later stage companies have some additional concerns: What favorable impact could IP have for PR, marketing and investor relations purposes, or as an attraction to potential acquirors? How much risk do IP issues in the aggregate pose to our business ? How much is it worth investing in cultivating and enforcing an IP portfolio ?

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Convertible Debt – Conversion In A Sale Of The Company

Feld Thoughts

Usually we see 2-3x, but in later stage companies, this multiple can be even higher. In the case of an early-stage startup that hasn’t issued preferred stock yet, the debt converts into stock of the acquiring company (if it’s a stock deal) at a valuation subject to a cap. Typical language follows.

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Investor Nomenclature and the Venture Spiral

K9 Ventures

In my view the terminology being used for early stage investors by the press and the media is not as clear as it should be. I’ve talked about this on several occasions when I’ve been at conference and on panels, but I figured it would make sense to do a post explaining my taxonomy of the early-stage investing world.