Haystack

SEPTEMBER 2, 2018

While there is no shortage of bad behavior among investors (especially at a scene like YC, which has ballooned in size), I definitely know of a seed stage company that was based in the Valley, raised some seed capital with no real lead investors, and moved the team to Europe, worked out of a big castle, pivoted a few times, barely kept investor in the loop, and disbanded eventually. For any investor raising their own funds, you may have to chase down capital calls for each investment.

Seed Stage 89

Seed Stage Seed Capital Equity Europe 89

View from Seed

MARCH 12, 2015

For example, occasionally entrepreneurs will ask things like, “How much capital have you called from your current fund?” For example, when an entrepreneur asks about capital calls, what they really care about is, “Are you guys still actively making new investments at present?”

Term Sheet 305

Term Sheet SEC Portfolio Reputation 305

Hippoland

JULY 24, 2018

And then later, when the fund needs money, the fund does a capital call. Typically, capital calls are done over the course of 3 years. The capital calls are not done on a perfectly regular cadence, because sometimes a fund will need money sooner than later.

Salary 62

Salary Bootstrapping Accredited Investor SEC 62

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. He suffered publicly as the press called his wife fat and begged people at concerts to be kinder to his wife.

Houston 396

Houston Vesting Founder Metrics 396

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. Forward Partners Venture CapitalIt follows that the average investor will make average returns.

Founder 156

Founder Partner Capital Call Startup 156

Both Sides of the Table

FEBRUARY 6, 2017

It was only a year ago that many in the Venture Capital industry were predicting that “winter was coming” and to be fair the author of this post was chief amongst them. billion in venture capital funds with one A-round fund and one late-stage fund. startup venture-capital

Venture Capital 279

Venture Capital Saudi Arabia UAE Kuwait 279

Gregg Fraley, Author of Jack's Notebook

MARCH 27, 2012

Can the right please refrain now from calling him a socialist? Call it democratization of the fund raising market, call it free enterprise, call it access to capital, call it what you will, but it is a trend.

Web 126

Web New York Washington Small Business 126

Both Sides of the Table

NOVEMBER 3, 2009

This is part of my ongoing series of posts and I need to file this one under both Raising Venture Capital and Startup Advice. Many of these businesses were what First Round Capital called FNACs (features, not companies – this acronym has always stuck with me).

Business Plan 355

Business Plan AJAX Venture Capital Burn Rate 355

K9 Ventures

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? PrivateEquityOnline: Bankrupt WaMu Parent Defaults on Capital Call. The venture capital industry is getting beaten from all sides.

Venture Capital 48

Venture Capital Portfolio IPO Stock 48

Andrew Payne

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.

Venture Capital 40

Venture Capital IRR Partner Distribution 40

ithacaVC

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. Here it is as a link and in full text: “The National Venture Capital Association (NVCA) and Thomson Reuters released today the 3Q12 VC fundraising data, which is a report I eagerly await as it is a barometer of the health of the VC industry.

San Francisco 48

San Francisco Baltimore Nashville Dallas 48

ithacaVC

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! All capital returned from investment gets paid out. Importantly, GP1 will have also committed investment capital to VC1.

Ratchet 47

Ratchet Carried Interest Salary Due Diligence 47

Seeing Both Sides

MARCH 19, 2012

And, finally, finally, finally, we saw overwhelming bipartisan support from the House of Representatives in support of a bill that will help small businesses raise capital, called the JOBS Act, which passed 390-23 last week and is now being debated in the Senate.

IPO 35

IPO Stock Capital Call Small Business 35

Pascal's View

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 good news is that a robust market exists for such interests in venture capital partnerships today; or (2) default.

Limited Partner 28

Limited Partner LP Government Partner 28

Babbling VC

JANUARY 7, 2011

I personally believe that one of the major drawbacks to venture capital in Europe is chronic under-financing and people skirt around this issue. Even if they enter with a low 2 or 3 million round, they are easily able to scale the business quickly with additional capital. You could of course argue that the lean start-up method doesn't call for much money but this is misleading.

Finance 65

Finance LP Europe Valuation 65

Venture Chronicles

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. I do want to devote some of this post to defending the VC business on one important point, there are times when a company is not deserving of continued funding and/or should be shut down to preserve investor capital.

Term Sheet 28

Term Sheet Due Diligence Limited Partner LP 28

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. Every start-up board is having the same conversation these last few weeks: how will this economic crisis affect us and what should we do in our own business?

Portfolio 20

Portfolio Angel Investor Capital Call Conversion 20

Altgate

MARCH 8, 2009

Their portfolio firms will be able to cut back on headcount and other spending and additional capital from investors will allow the companies to survive for the 2-5 years it will take the market to begin to recover.

Later Stage 42

Later Stage Early Stage LP Balance Sheet 42

Professor VC

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. Of course, the most important funding statistic to an entrepreneur relates to one specific company, and whether there is sufficient capital available to build and scale his business. Labels: bootstrapping , CFO , Fliqz , venture capital , venture financing.

Venture Capital 28

Venture Capital San Jose Bootstrapping Silicon Valley 28

thestartuplawyer.com

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

Preferred Stock 40

Preferred Stock Stock NDA Stock Options 40