Gust

SEPTEMBER 6, 2014

Precisely because seed stage investments in private startup companies are NOT Warren Buffet’s types of investments. Early venture and angel investments are much, much riskier than Buffett’s, with more than half of them typically failing completely and losing the entire investment.

Exit Strategy 116

Exit Strategy Seed Stage Early Stage Carried Interest 116

The Startup Magazine

MARCH 22, 2019

Venture capital and angel investments offer excellent options to startup businesses. 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).

Angel Investor 123

Angel Investor Venture Capital Accredited Investor Equity 123

Agile VC

JULY 11, 2012

AGILEVC My idle thoughts on tech startups. Merrill, Pickard, Anderson & Eyre [Silicon Valley] –> Itself an outgrowth of the venture investing arm of the original Bank of America (based in SF), Merrill Pickard backed many startups that ultimately went public. How to Evaluate Firms for a Seed VC. July 11, 2012.

Silicon Valley 240

Silicon Valley Carried Interest Cofounder Boston 240

VC Adventure

MAY 19, 2016

I really mean two things: The first is the application of entrepreneurial principles and startup techniques to solving critical, basic needs problems around the world (many of the companies I’ve worked with as a founding board member at the Unreasoanble Institute fall into this category, as one example).

Colorado 58

Colorado Belgium Carried Interest Community 58

ithacaVC

JANUARY 10, 2012

Managing Partner/General Partner (I have seen some with Managing Directors too like an investment bank): top dogs that run the shop and own most of the carried interest. These roles typically do not have any carried interest. It carries cache. And it often carries carried interest too (though a lower share).

Partner 49

Partner Carried Interest Caching Harvest 49

ithacaVC

MAY 10, 2011

Fourth, GP1 is entitled to a carried interest in fund profits. Therefore, the returns from the sale/IPO of the fund’s portfolio companies must clear capital commitments before GP1 gets any carried interest. The amount is typically 20% of profits.

Carried Interest 51

Carried Interest Ratchet Limited Partner Due Diligence 51

Professor VC

JULY 25, 2013

Startup outcomes tend to be very binary. Funders Club ( which I''ve written about previously ) recently launched a referral program where angels can receive 10% of the carried interest in a deal they refer that ultimately gets investment from an FC fund.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Hippoland

JULY 24, 2018

more on this later) Much like running a product-startup, you’re your own boss, so you sometimes end up working really hard and at all hours depending on where you are in your fund life cycle. In fact, much like startups, I’ve heard that 9 in 10 VCs will not even get to 1x returns! First, most VC funds are failures.

Salary 48

Salary Capital Call Bootstrapping Cofounder 48

Hippoland

JULY 24, 2018

more on this later) Much like running a product-startup, you’re your own boss, so you sometimes end up working really hard and at all hours depending on where you are in your fund life cycle. In fact, much like startups, I’ve heard that 9 in 10 VCs will not even get to 1x returns! First, most VC funds are failures.

Salary 48

Salary Capital Call Bootstrapping Cofounder 48

Women Entrepreneurs Can

MAY 9, 2019

Early on in any startup is more often than not filled with the unknown. There’s a ton of questions, but one thing is for certain: it is thrilling to see your little startup start to come into its own. Venture capitalists are used only after a startup has begun to show a significant amount of revenue.

Programming 40

Programming Sweat Equity Startup Private Equity 40

Startup Company Lawyer

MAY 13, 2009

The budget proposal is wide ranging, and includes, for example, proposed changes with respect to the taxation of “carried interests&# in partnerships, as well as sweeping reform of the international tax area. This week, the Obama Administration released the first comprehensive summary of its budget proposal.

Capital Gains 47

Capital Gains Stock Small Business Redemption 47

Hunter Walker

MARCH 30, 2023

The conversation evolved to one about how our industry (venture, startups, tech in general) could better message about the positive role we play in the economy. When she asked what would I recommend my response wasn’t about getting rid of carried interest or breaking up the big companies but about customer support.

United States 67

United States Carried Interest Engineer Viral 67

View from Seed

OCTOBER 29, 2014

Most folks reading this will know that many startups were built in part with the help of venture capital. However, many folks probably don’t think about exactly where those VC dollars that help fund startups actually come from. So I wanted to dive a little deeper into what I call the startup capital supply chain.

LP 335

LP Private Equity Institutional Investors Venture Capital 335

Agile VC

OCTOBER 29, 2014

Most folks reading this will know that many startups were built in part with the help of venture capital. However, many folks probably don’t think about exactly where those VC dollars that help fund startups actually come from. So I wanted to dive a little deeper into what I call the startup capital supply chain.

Venture Capital 279

Venture Capital LP Private Equity Institutional Investors 279

Agile VC

NOVEMBER 13, 2012

The IPO market remained closed to IT startups, but there were big acquisitions like Google buying YouTube for $1.65B (Fall 2006) and late stage financing rounds for companies like Facebook (Microsoft round at $15B valuation in Fall 2007). So at a fund level (e.g. typically, which in most cases would to >20% IRR.

LP 154

LP Portfolio Venture Capital IRR 154

Steve Blank

OCTOBER 29, 2009

These angels who were all working in their day jobs at various financial institutions, would invite startup electronics companies up to San Francisco to pitch their deals and they would invest an average of $75 -$300K per deal.

Silicon Valley 125

Silicon Valley SBIC San Francisco RSS 125

Seeing Both Sides

MARCH 22, 2011

But then everyone got distracted with the financial crisis and (yet) more regulation related to SEC registration and battles over the tax treatment of carried interest. The StartUp Visa movement has made terrific progress thanks to online, grassroots support. Let's use that as a model for the IPO market.

IPO 38

IPO Investment Bankers Massachusetts SEC 38

K9 Ventures

NOVEMBER 30, 2008

In addition, there is a performance incentive — the Carried Interest or Carry. The carry is typically around 20% of any gains on the fund. Therefore, the motivation is really to look for startups that have an appetite for a larger, chunkier investment. of the size of the fund.

IRR 48

IRR Venture Capital LP Early Stage 48

This is going to be BIG.

FEBRUARY 25, 2019

Crowd investing platforms allow anyone to be an investor even if they’ve never even interacted with the team—so you could have made two dozen investments and still have very little firsthand knowledge of what life is like at a startup or what early stage founders go through. With new technology should come new terminology.

Syndicate 102

Syndicate Syndication Angel Investor Cap Table 102

This is going to be BIG.

JUNE 29, 2020

4) We need to push the Federal Government to close the carried-interest tax loophole —but we should do it in such a way where the localities where it gets collected get a share of the income from it. Closing the carried interest tax loophole is something Trump said he was going to do when he campaigned.

New York 153

New York Vermont Carried Interest New Jersey 153

This is going to be BIG.

JANUARY 10, 2021

Similarly, I just got a pitch for a startup providing telehealth access that specialized in allergies—which I was pretty excited about until they told me that pharmaceutical companies were fronting the cost of their marketing. I was both horrified and yet not surprised at all.

Venture Capital 150

Venture Capital Cap Table Accredited Investor Silicon Valley 150

Both Sides of the Table

JANUARY 2, 2016

VCs also get capital gains tax rates on “carried interest,” which is what irritates the masses. Carried interest is the upside that VCs get after returning the money they raised – it is the VC “profit” if you will. I wish founders, startup employees and VCs all paid the same rate of taxes.

Dividend 150

Dividend Capital Gains Silicon Valley Stock 150