Recycling: The challenge and the opportunity for a Seed stage VC

Information Arbitrage

When Limited Partners (LPs) invest in a venture fund, they agree to pay an annual Management Fee on committed capital, usually on a declining scale over a 10 year period. In total, these fees amount to around 20% of an investors’ commitment, which implies that LPs only get to put 80% of their investment dollars to work because of management fees. We ended up Fund I being around 116% invested, meaning that we invested $58M against $50M of committed capital.

Getting Younger People In Touch With The Future Of Investing

The Startup Magazine

An investor commits capital with the expectation of financial return, which according to CNN Money is a growing benefit to the average American’s bank account. Capital Raising FinanceInvesting is a simple concept.

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Thinking About Bodega

Hunter Walker

We – and the other investors – committed capital, sweat and reputation behind a team that absolutely is working on a problem that matters to them and we believe can be meaningful to customers. Let me tldr by saying I agree with Paul’s commitment here to listen to and understand the feedback. As investors, we hope to help founders see around corners in order to assess and predict outcomes.

Why VCs Should Recycle Their Management Fees

Feld Thoughts

The advantage, for all the investors (the VCs and their LPs), is that $100m gets put to work as invested capital, rather than just $85m. If I’ve only put $85m to work, I have to generate $100m to get to a point where I’ve returned capital, which puts me in a position to get carry.

How do you get a check from this firm? The Process page.

This is going to be BIG.

Are you a fund with committed capital? Some firms prefer to lead. Others never do. At some firms, principals can lead deals. At others, only partners can. At some firms, everyone is called a partner. Who can lead a deal then? ¯_(ツ)_/¯ Sometimes, it depends on the size of the deal. Above a certain amount, more partners need to get involved. Some funds aren't funds at all. They're family offices. Some "venture firms" don't have money and never did. They might be brokers or advisors.

2012 Recap and Final Close at $19M

Version One Ventures

Announcing Version One’s final close In addition to wrapping up 2012, I’m happy to announce the final close of the Version One Ventures fund with $19 million in committed capital. News BDC e-commerce marketplaces seed Series A round Software as a service venture capitalWhile crunching the data and reflecting on the past year, it’s clear that 2012 was busy. Version One Ventures made eleven investments, including three angel investments that rolled over into the fund.

Institutional Venture Partners Raises $1 Billion Fund

Inc Startups

The firm raised the $1 billion fund, IVP XIV, over four months and now manages $4 billion in committed capital. The late-stage VC firm that backed Zynga, Twitter, and Dropbox raises its largest fund to date.

OATV and Indie.vc

Bryce Dot VC

We were one of a handful of “institutional” super angel/micro VC/seed funds, which is to say that we raised a sizable ($50M) pool of capital from outside investors. The second strategy was to use a portion of each fund as a pool of capital to make Tim’s angel investments. In Fund IV, we are still actively making Tim’s angel investments and allocating a larger percentage of committed capital to them.

Why VC’s Don’t “Crossover” Invest

Agile VC

A little more inside baseball from the VC biz… why VC’s rarely make “crossover” investments, with capital from multiple funds the VC firm manages invested in a single startup (see note 1).

LP 142

The Expanding Birthrate Of Web Startups

A VC : Venture Capital and Technology

I like to think of the venture capital business like parenting. When I invest in a company, I am committing to the care and feeding of the company until cash flow breakeven (the startup equivalent of adulthood). We invested about a half a million of seed capital into a company last year and it is already profitable and there is a good chance that company isn't going to need any more capital from us. I see the capital calls.

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The TTD Investment and the IA Ventures Model

Information Arbitrage

Gearing up for Global Expansion - The Series B As the Company was rapidly expanding its global footprint, we as a Board decided it made sense to put more capital on the balance sheet to both support growth as well as secure a substantially larger credit line for financing receivables and a slice of term debt. or just over 10% of our Fund I committed capital. In each fund we have 24-28 investments, with 6-8 garnering the lion’s share of the capital over multiple rounds.

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NEA Closes $2.6 Billion Venture Capital Fund

Inc Startups

In two months, the venture capital firm raised one of the largest venture funds ever. billion venture capital fund on Wednesday, and it’s one of the largest venture funds ever assembled. NEA's new fund comes in the midst of a contracting, more concentrated venture capital market.

What Investors Want to Know Before They Commit

Inc Startups

As our investors considered committing capital to this acquisition, they would welcome Jerry's perspective on the company, the market, and the strategic opportunity. A Fortune 100 investor outlines what questions he would ask before signing on the dotted line.

Unshackle the Middle Class

Marc Andreessen

If you bought Facebook stock at its IPO, to realize a similar multiple that Microsoft’s public shareholders have earned, Facebook’s market cap would need to reach nearly $50 trillion, roughly the size of the total market capitalization of all publicly-traded companies in the world. If you are an accredited investor, you can become a limited partner in one of over 400 venture capital firms that invest in such companies.

VC Returns through 12/31/06

Will Price

Today, the NVCA released venture capital returns performance data through year-end 2006. The key question is whether the current structural reality - i.e. # of funds, amount of committed capital - of the venture industry will support like returns over the next 10-20 years.

How VCs Make Money….Hopefully

ithacaVC

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.

How To Change The World - Startups and angels: Along the way to.

Tim Keane

 Get others committed to your enterprise on the team with you.   Reduce donor risk and raise effectiveness of committed capital.  Get others committed to your enterprise on the team with you.   Reduce donor risk and raise effectiveness of committed capital. Angel Capital Association website. Startups and angels: Along the way to success. By Tim Keane, Angel Investor, Golden Angels Investors, LLC. Archives. Profile.

Venture Capital Economics With Public Market Liquidity

Austin Startup

By Tushar Jain Traditional venture capital firms typically invest in the equity of young, fast-growing, technology startups. Each individual investment is risky: 75% of venture-backed companies fail to return invested capital to their investors. This strategy of portfolio composition is known as “venture capital economics”. Limited partners, who commit capital to venture funds, have to commit for 7–13 years. funding venture-capital

Max Niederhofer Joins Copenhagen's Sunstone Capital

ArcticStartup

Sunstone Capital has now added Max Niederhofer as a partner in its Copenhagen office, after leaving his position as Vice President in Accel Partners'' London office. At Sunstone, we are building Europe’s premier, early-stage, West Coast-style venture capital firm. Today they manage around €700 million in committed capital, and raised their last €85 million fund in December of 2011.

Via Venture Partners Raises A New Fund Of EUR 134 Million Targeting Nordic ICT

ArcticStartup

In addition to the VC's original fund founded in 2006, this makes Via Venture Partners one of the largest VCs in the Nordic region with a total of EUR 268 million of committed capital. Via Venture Partners has announced (PDF) raising of a new fund.

Lessons from leaders in virtual goods « Lightspeed Venture.

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0

Oncos Therapeutics Raises € 4M From HealthCap To Develop Cancer Treatments

ArcticStartup

HealthCap is one of the largest specialized providers of venture capital within life sciences in Europe with committed capital exceeding € 800 million.

Notes from my keynote at Engage Expo Virtual Goods conference today

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0

Awesome stats on social game purchasing « Lightspeed Venture.

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0

10% of ecommerce sites convert at better than 8%

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0

Taking Your Pro Rata as Angel Investing Strategy - DShen's Blogs

Dshen

In the world of the so-called lean startup and capital efficiency, everyone talks about finding a startup that only requires one round of financing, then gets to breakeven and profitability without requiring more rounds of financing. If you invest only in the first round as an angel investing strategy, then you must try for the lowest pre-valuation and hope for capital efficiency so that an exit can happen without further rounds of funding. The Web and the World of Business.

Best practices in MMOG metrics « Lightspeed Venture Partners Blog

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0

$2.5bn market size estimated for virtual goods in the US by 2013.

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. Home About Lightspeed Team jump to navigation $2.5bn market size estimated for virtual goods in the US by 2013 August 30, 2009 Posted by jeremyliew in virtual goods.

Interview with Mike Brown Jr. of AOL Ventures

The Startup Lawyer

We’re a small fund with $30M of committed capital, so we focus on Seed and Series A opportunities. I get it, but that’s not a logical investment thesis for us to deploy capital against. Venture Capital AOL Ventures corporate VC startupI had the chance to chat with Mike Brown Jr., Founder and Partner at AOL Ventures , a few weeks ago.

LP 40

Speaking at Virtual Goods Summit – 15% off code

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0

$200 off engage – virtual goods, games and social media conference

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0

“Wars” style social games placed in context of other web based.

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0

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Who buys extended warranties? Poor people. « Lightspeed Venture.

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0 Home About Lightspeed Team jump to navigation Who buys extended warranties? Poor people.

some game design considerations for a free form eldergame

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0

Tips on Facebook ad campaigns « Lightspeed Venture Partners Blog

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0

Best practices in contextual and performance advertising in social.

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0 Home About Lightspeed Team jump to navigation Best practices in contextual and performance advertising in social networks.

Flash in the Datacenter? « Lightspeed Venture Partners Blog

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0 Home About Lightspeed Team jump to navigation Flash in the Datacenter? March 31, 2009 Posted by Barry Eggers in flash , Uncategorized.

Flash 19

myspace suspending some categories of performance advertising?

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0 Home About Lightspeed Team jump to navigation Myspace suspending some categories of performance advertising?

Erik Bethke on game balance in free to play games « Lightspeed.

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. gaming Internet mmorpg myspace Search social games social gaming social media social networks start-up startup startups user generated content VC Venture Capital viral viral marketing virtual goods virtual worlds web 2.0

Congrats to Living Social for launching 25 new cities today.

Lightspeed

Lightspeed is a leading global venture capital firm with over $2 billion of committed capital under management. Home About Lightspeed Team jump to navigation Congrats to Living Social for launching 25 new cities today! July 13, 2010 Posted by jeremyliew in living social , local.