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Why LP’s Passed on Seed Funds 10 Years Ago (And What’s Happened Since)

View from Seed

But in the grand scheme of things, 10 years is a blip, and one that had a continuous bull market in tech. But what has also happened over the last 10 years is the massive expansion of the series A and lifecycle fund market. The third factor is probably the biggest, which is that we’ve been in a very fortunate market environment.

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Why Average VC Returns Don’t Really Matter

Agile VC

FoFs have a range of strategies of course, but broadly speaking LPs that invest in FoFs pay them a management fee and carried interest (on top of the fee & carry of underlying VC funds they invest in) for access, diversification, active management or a combination of all three.

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Top 29 Startup Posts May 2010

SoCal CTO

"Authentic" is dead - A Smart Bear: Startups and Marketing for Geeks , May 3, 2010 It's time to retire the following phrases. Bending over: How to sell to large companies - A Smart Bear: Startups and Marketing for Geeks , May 24, 2010 This is a guest post by Steve Hanov , who blogs about programming and startups. Stay Tuned.

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What Makes an Entrepreneur? Cojones (7/11)

Both Sides of the Table

Being tenacious without the mental flexibility to pivot based on market feedback is a disaster. If this idea was so big then why would they risk not being first to market, not building defensible IP for the sake of a few hundred thousand dollars extra in lock-up money at a big company? I finally called bullshit. I had nothing to lose!

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How do venture capital firms make money by investing in startups?

Gust

Ultimately, the company will be either sold to a larger company (at a higher price) or begins to sell shares through the public stock market (“going public” with an “IPO”). In many, if not most, cases, this management fee can significantly exceed the “earned” amount from the “carried interest”).

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Why Internal Ventures are Different from External Startups

Steve Blank

The external startup has to work long hours, and make many pivots, to identify the product-market fit, validate the MVP, and articulate a winning business model that can then be repeated and scaled. Worse, Robert Adams and his two partners got 20% of the carried interest in the fund, resulting in payouts of $30 million to the partnership.

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What’s the Difference? Venture Capitalist vs. Angel Investor

The Startup Magazine

An article in Forbes explains that a venture capital firm makes its money through management fees (a percentage of the amount of capital that they have under management) and carried interest (a percentage of the profits of the business). Investor Involvement. Choosing the Right Type of Investor.