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What Do LPs Think of the Venture Capital Markets for 2016?

Both Sides of the Table

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. However, they have been sending VCs far more investment checks in the last ten years than they’ve gotten back as distributions.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. Capacity Capital, Greater Colorado Venture Fund, Indie.VC, Reformation Partners, UP Fund, Versatile VC. Flexible VC: Compensation-based.

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A Deep Dive into What Has Really Changed in Venture Capital

Both Sides of the Table

Yes, distributions to LPs have been pushed out a few years but the value capture in privates by the best VC firms (and best LPs) has been enormous. If you fast forward one generation of tech companies it’s a completely different story.

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Why Was Winter in Venture Capital Funding so Short?

Both Sides of the Table

WINTER For starters when we conducted our annual VC & LP survey in December of 2016 to prepare our annual Upfront State of the VC Industry report we found that twice as many VCs cut their investments in 2016 relative to 2015 with > 30% of VCs having cut investments. Unless of course something Trump’s our good weather.

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My Thoughts on the Current Market: on 20-Minute VC

Both Sides of the Table

Food production and distribution, group collaboration, remote training or education, sensor technology (tracking people movement, temperatures, etc), certain biotech deals. Harry asked me whether I thought LP “defaults” (not funding the VC commitments it made) would go up.

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How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm

David Teten

So I would start by sharing with the fund an institutional LP due diligence checklist , and ask them to share their data room with you. Sean Seton-Rogers, Partner, Profounders Capital, breaks the conversation into three areas: Control: voting/veto for new deals, share of management company. – Tax distributions.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP. We are also seeing technology evaluation as an increasingly important part of LP operational due diligence. 11) Exit .