Every founder and startup investor should be contrarian
The Equity Kicker
OCTOBER 21, 2015
In the world of startups and venture capital all the money is concentrated in a small number of winners and average returns are probably below zero.
How to Do Research on VCs (Written by a VC)
View from Seed
MARCH 12, 2015
For example, occasionally entrepreneurs will ask things like, “How much capital have you called from your current fund?”
The Loneliness of Success that Nobody Talks About
Both Sides of the Table
JULY 19, 2015
But I wanted to call out specific attention to the loneliness of success because it has its own unique flavor. It was a heavy day, for sure.
Why Was Winter in Venture Capital Funding so Short?
Both Sides of the Table
FEBRUARY 6, 2017
billion in venture capital funds with one A-round fund and one late-stage fund. Why Was Winter in Venture Capital Funding so Short?
JUNE 29, 2014
Warren Hogarth from Sequoia Capital called him the “most persistent founder he ever met.” “Entrepreneurs are often given two pieces of contradictory advice: persistence and flexibility. Have a vision and pursue it through years of people telling you you’re out of your mind. There isn’t an actual algorithm. Endnote ].
Keep the Good News Flowing - Pass the JOBS Act, Now
Seeing Both Sides
MARCH 19, 2012
Both of these are very important mechansims to encourage more capital to flow into young, innovative companies.
VC Governance FAQ: (10) Are limited partner defaults on capital commitments triggering a wave of lawsuits in the venture industry?
MARCH 19, 2010
This is the last in our series of 10 frequently asked questions from investors in venture capital partnerships. Why throw more money their way?
How VCs Make Money….Hopefully
MAY 10, 2011
First, VCs get capital commitments from limited partners (i.e., That means that it has capital commitments from investors of $100mm. Capital is called when needed for investment, fund expenses or management fee. And, VC1 does not reinvest capital returned (with very few limited exceptions) – VCs are not hedge funds!
The Venture Capital Shakeout
MARCH 25, 2009
The venture capital business is in the middle of a shakeout. LPs missing capital calls (a very big deal). I don’t wish ill-will on any of my venture friends, but I think this is good for everyone in the long run: we’re flushing out a broken, over-capitalized, me-too industry.
In The Long Run, We Are All Dead
Seeing Both Sides
OCTOBER 9, 2008
GigaOm reports that Sequoia Capital called an all-hands, emergency meeting with its portfolio CEOs to walk through a recommended plan of action. Cut costs, cut projects, raise incremental capital, be proactive and plan for the worst. That said, CEOs need to take swift action to make sure they survive to see the long run.
A Time for Change in Venture Capital
DECEMBER 9, 2008
The bottomline is that this is the worst time in history for the venture capital industry. Here are just a couple that I’ve come across recently: TechCrunch: The End of Venture Capital As We Know It? WSJ: Venture Capital Hits a Cash-Call Crunch. BusinessWeek: What Will the Crisis Mean for Venture Capital?
Playing the Volume Investing Game - DShen's Blogs
MARCH 10, 2010
Typically capital calls are made to limited partners when an investment happens. If there are a lot of capital calls, making and collecting a huge volume of capital calls can be a lot of work on the fund personnel and limited partners. Capital calls may work differently for these early stage funds.
VC Governance FAQ: (8) How can a limited partner exit from a VC fund?
MARCH 17, 2010
This is the eighth in our series of ten frequently asked questions from investors in venture capital partnerships. Answer: The options here are limited, and they are (1) the LP can try to sell their interest, including the obligation to fund future capital calls, to a fund that acquires secondary interests.
The Expanding Birthrate Of Web Startups
A VC : Venture Capital and Technology
AUGUST 22, 2010
I like to think of the venture capital business like parenting. That care and feeding includes the decision to call it quits and give up on the project sometimes, but honestly that doesn't happen that much in our portfolios. I see the capital calls. The venture capital business is contracting.
What is going to happen?
OCTOBER 11, 2008
Some VCs will have trouble when they make capital calls (asking their investors to send the next tranche of the investment money that they are contractually bound to send). Those commitments are drawn down in the form of the capital calls I mention above.) does it effect the VC world? It is well worth reading.
Death By VC
JULY 16, 2010
Throughout my years in the venture capital business I was witness to some questionable behaviors and tactics, which in reality is par for the course in any business, but nothing could have prepared me for what I have seen in the last 2 years. The second scenario is the pulled term sheet. It’s the nuclear scenario.
Q3 2012 VC Fundraising Data and Conclusions
OCTOBER 10, 2012
But I did come across a super post today by Michael Greeley at Flybridge who reported on the just announced Q3 2012 VC fundraising data released by the National Venture Capital Association (NVCA) and Thomson Reuters. Nine of the top ten funds are in California; #10 (Pharos Capital) calls Dallas and Nashville home. -
The Collapse of the VC Ecosystem & What It Will Look Like Post.
MARCH 8, 2009
But the folks in the middle don’t really do anything other than fire founding CEOs and add capital. But some will be saved. So what to do?
ILPA 2.0 - Evolution, not revolution
Recent Buzzes - VC Experts, Inc.
JANUARY 25, 2011
One area where some GPs will feel that ILPA is being too prescriptive is in the standard form capital call and distribution notice - the first of five templates that ILPA intends to create. By SJ Berwin LLP. January 21, 2011. Introduction. Last week, after extensive consultation, ILPA published a second version of its Principles.
ProfessorVC: The Most Important Venture Capital Statistic
JANUARY 20, 2009
The Most Important Venture Capital Statistic. million for the year, which is the first time it has been below $5 million since 2001, a sign that capital efficiency will be even more important than it has. Some were also dealing with issues of limited partners struggles with capital calls and asset allocations. We drew $1.5
Why Co-Founders Are a Startup's Biggest Liability | The Startup Lawyer
FEBRUARY 24, 2010
Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM He obviously never launched a startup and got shafted by a co-founder. Entrepreneurs often believe their startup company faces legal threats from only external sources.