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

Both Sides of the Table

This is the final part of a 3-part series on the major changes in the structure of the software & the venture capital industries. 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.

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

David Teten

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. Advances in machine learning, specifically natural language processing, have made generating these baseline, aggregate datasets possible, at scale, with high accuracy.

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How to Scale Support of Portfolio Companies

David Teten

At HOF Capital, we support our companies through 7 main levers (i.e., 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. – Aggregation, ranking, and discounts from service providers. 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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What’s a Fair 409A Discount?

VC Adventure

Back in the olden days of venture capital, company boards had wide discretion in pricing company options. It was and is imprecise science but – at least in the case of venture backed startups – there wasn’t much harm in an option being priced low. Quick note: I’m not your lawyer. I was wrong.

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Will A Business Incubator Help Hatch Your Startup?

Startup Professionals Musings

Accelerators generally accept startups at a slightly later stage, and attempt to compress the timeline to commercialization into a few months, instead of a year or more. Think of that challenge like competing for limited venture capital. billion, with the total amount raised topping $2 billion.

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Four years at Version One & some thoughts on “Moneyball for VC”

Version One Ventures

Over the next two weeks, I set out to build my own Mattermark / CBInsights by aggregating the APIs of Crunchbase, AngelList, and Twitter, as well as any other relevant datasets I could get access to. At later stages, there’s more access to private data that they can benchmark against their own successful portfolio.