David Teten

JANUARY 19, 2021

That said, nothing is cost-free. More complex cost of capital calculation. This causes the cost of capital for Flexible VC, often calculated through IRR (similar to an interest rate), can be higher than that of venture debt or traditional RBI. Transaction costs. Legal costs typically $5K-$50K . Cost of capital.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

JULY 23, 2014

Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. We’re all socially connected (so great businesses spread faster). We all have one-click purchase power (Apple, Google, Amazon, eBay). The VC market has right-sized (returned back to mid 90′s levels & less competition).

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Both Sides of the Table

FEBRUARY 25, 2019

Should we cut costs, do layoffs, close divisions and focus scare resources on fewer projects? We then do a cocktail party so that everybody can have informal conversations (including LP to LP) and then we do a dinner in a private room at a restaurant. The founders of a company are fighting. Can we help them get along?

LP 269

LP Startup Burn Rate Stock Options 269

Genuine VC

SEPTEMBER 7, 2010

The famed business strategist Michael Porter described a set of successful general strategies which firms employ to achieve a sustainable competitive advantage: differentiation strategy and cost leadership strategy for those firms with a broad market scope, and a segmentation strategy for those with a narrow market scope.

Seed Stage 191

Seed Stage Belgium Differentiation LP 191

View from Seed

AUGUST 17, 2021

I can tell a story looking backwards why our LP base was carefully constructed. But in a lot of ways, the things that made magic happen between ourselves and our LPs was driven by timing, luck, chemistry, and other factors that were hard to predict at the time.

IRR 205

IRR Dilution Founder Portfolio 205

View from Seed

AUGUST 17, 2021

I can tell a story looking backwards why our LP base was carefully constructed. But in a lot of ways, the things that made magic happen between ourselves and our LPs was driven by timing, luck, chemistry, and other factors that were hard to predict at the time.

IRR 156

IRR Dilution Founder Portfolio 156

thebarefootvc

FEBRUARY 19, 2014

”, almost exactly 2 years ago to this day at Bloomberg LP’s headquarters in NYC as part of Social Media Week. I gave a talk, titled “What in the World?”, You can view the full presentation here.

India 107

India North America Ukraine Silicon Valley 107

Both Sides of the Table

JUNE 29, 2014

I saved it mostly for LP discussions that I had over the past year. The costs to start are much lower than ever (90% reduction in infrastructure costs to start a company through open source & web services) and large companies being created in many geographies.

Venture Capital 362

Venture Capital IPO LP Jordan 362

Both Sides of the Table

JANUARY 5, 2010

If your idea is so amazing that it warrants my hard-earned angel money or the money of my LP investors from our fund then why should I take a risk on you if you won’t take a risk on yourself? I’ll pay my own moving costs and if we don’t raise the fund you owe me nothing.”. Why should I be? I want to join now while there’s risk.

Entrepreneur 293

Entrepreneur CTO Hire South America Salary 293

View from Seed

AUGUST 17, 2021

I can tell a story looking backwards why our LP base was carefully constructed. But in a lot of ways, the things that made magic happen between ourselves and our LPs was driven by timing, luck, chemistry, and other factors that were hard to predict at the time.

IRR 136

IRR Dilution Founder Portfolio 136

David Teten

AUGUST 15, 2013

Some corporations emulate this model by creating their own wholly-owned VC entities, typically with one LP: the corporate balance sheet. Attendees “get hands-on experience, insight, tips and tricks from AWS experts on how to architect [their] applications, optimize [their] costs and deploy quickly to the AWS cloud.” 3) Freebies.

Startup 114

Startup Technical Support Venture Capital Balance Sheet 114

Both Sides of the Table

FEBRUARY 4, 2016

” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. We surveyed 73 LP firms to get their views on the market. “This is the year the tortoise may gain on the hare.” How do I know?

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

Both Sides of the Table

MAY 27, 2016

I was asked again in an LP meeting later in the week and then again at a founder breakfast gathering we hosted yesterday. I have to believe the founder is cost-focused, mission-driven and aligned on cultural values to me, which mostly relates to integrity and how to treat other people. Innovator’s Dilemma.

Early Stage 254

Early Stage Non-Compete LP Later Stage 254

Both Sides of the Table

FEBRUARY 18, 2016

To do so we need entrepreneurs who can build companies that scale well in booming markets and also control costs appropriate in correcting markets. Up next I’ll publish all of the LP (people who invest in VCs) data we gathered and what we believe this signifies. VC survey data 2016 from Mark Suster.

Burn Rate 150

Burn Rate LP Curation Valuation 150

Both Sides of the Table

FEBRUARY 6, 2017

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.

Venture Capital 150

Venture Capital Saudi Arabia Kuwait Burn Rate 150

Both Sides of the Table

APRIL 21, 2020

Get your costs down, renegotiate your supply contracts and extend your runway. A seed company hasn’t ramped up its cost base. Harry asked me whether I thought LP “defaults” (not funding the VC commitments it made) would go up. This is not a 2-month v-shaped correction. It won’t surprise you that I disagree with that.

Marketing 263

Marketing Valuation Churn Rate Balance Sheet 263

Feld Thoughts

JANUARY 23, 2020

To begin, they are underwriting 100% of the cost for two programs – Meru Health and Hoffman Institute , for all of their founders. As an LP in Freestyle, I’m extremely excited to see their leadership in this area.

Leadership 90

Leadership LP Programming Portfolio 90

Both Sides of the Table

OCTOBER 14, 2015

I spoke at Michael Kim’s excellent annual Cendana VC/LP conference today. I encouraged them to stay in shorter-term space, higher per-unit costs but no capital outlays. Here’s my take away. This will be seen as a watershed moment in the wake-up call and rationalization of our industry. Does this suck? It affects lives.

Burn Rate 150

Burn Rate San Francisco Private Equity LP 150

Both Sides of the Table

MAY 23, 2012

Cloud computing and the open source movements have brought down the costs of starting a company by more than 90%. They need a combination of capital and experience to separate from the rest of the pack – the low cost of starting a business means it is even more vital to become the market leader more quickly. The Funding Problem.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

David Teten

SEPTEMBER 23, 2017

Sources like Crunchbase , Angel List , and Seed Invest even give this data away for free or very low cost. Jaime Hildreth, Managing Director of GP and LP Strategies at Ipreo , informed us that 97% of Ipreo’s GP clients report that data requests from LP’s have increased over the past two years.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

This is going to be BIG.

DECEMBER 3, 2020

Depending on the minimum investment size, if you think about what hiring an actual analyst, or someone more senior, might cost you to look at deals you’re serious about, an investment in a fund could may for itself in access. Access to other investors.

Portfolio 134

Portfolio Syndicate Syndication Deal Flow 134

YoungUpstarts

NOVEMBER 18, 2018

The costs associated with patenting your technological or creative boon, successfully bringing your product to market and compelling larger companies to come to the table and negotiate a royalty deal rests in how you proceed. and Alarmforce LP, SkyBell Technologies, In August Home Inc.,

Intellectual Property 157

Intellectual Property Forecast LLC Acquisition 157

David Teten

DECEMBER 3, 2019

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.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Babbling VC

JANUARY 7, 2011

We keep hearing about lean start-ups and how much costs have dropped when launching and growing a business. Conversely you could blame the LP's (limited partners: the investors in venture funds) and say they are the one's not risking it enough. Initial costs are peanuts to get something up and running.

Finance 76

Finance LP Europe Valuation 76

Babbling VC

NOVEMBER 3, 2013

When travelling you actually think about your budget and what that cab/plane/train/Über ride costs (if you''ve become an entrepreneur!). LP''s.what''s that? You''re not in the Valley (if not based there) three or four times a year at least and couldn''t be bothered. .

LP 99

LP Portfolio Business Plan Demand 99

Startup Lessons Learned

AUGUST 10, 2011

The LP's that fund booms are, after all, pension, municipal, and sovereign wealth funds. During the last crisis, I was asked constantly for my advice on how to save money and cut costs. Cutting any other costs just help us go out of business more slowly. And why did we have to wait for a financial crisis to cut those costs?

LP 168

LP Incubator New York Programming 168

Haystack

MAY 5, 2018

You are your own LP and GP. I hope this post helps people weigh the opportunities and costs of each path. In this post, I wanted to briefly break-down the different ways folks can invest today (*assuming they have access to capital — more on that below in a footnote) and benefits & drawbacks of each one.

Salary 76

Salary LP Portfolio Venture Capital 76

Hunter Walker

AUGUST 24, 2014

The opportunity cost of a startup in forfeited salary and in-the-money equity at larger tech companies can be considerable. I conjecture there’s a secondary benefit to managed liquidity for founders: it may help diversify founder populations.

Founder 108

Founder San Francisco Liquidity Event LP 108

Up and Running

MAY 26, 2015

To register your business name this way, you’ll need to register your business structure, such as a limited liability company (LLC) or a limited partnership (LP), a corporation, or a nonprofit. Registering your LLC or LP: The rules governing LLCs and LPs will vary state to state, so be sure to check your specific state regulations.

Naming 60

Naming LLC Limited Liability Company LP 60

The Equity Kicker

JULY 8, 2019

This is what brings us to the second big difference: the cost of Applied Venture is too large to finance from a standard VC management fee. . Different funds finance the cost of these teams with a differing weighting of asking portfolio companies to pay for services, larger than normal management fees, and reduced compensation for partners.

Portfolio 84

Portfolio LP Venture Capital Partner 84

Hunter Walker

JULY 19, 2017

This can happen quietly without your knowledge, or because the sponsoring fund is a GP or LP in the Scout fund. And as a founder, this is the risk/cost/benefit (depending on how you see it). If the Scout is passing along your email updates and investor updates to their sponsoring fund, you should know it.

Founder 69

Founder Silicon Valley Cap Table LP 69

David Teten

AUGUST 21, 2019

Lower processing cost. Much lower cost of capital, if company is highly successful. The cost of VC funding to a unicorn CEO can easily be the equivalent of paying well over 100% annual interest. Cost of capital is tax deductible, unlike traditional equity VC. For a VC round, this can be $25-50k+.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Start Up Blog

APRIL 4, 2011

Cost of wages in labour intensive industry. Sales recorded music sold on a physical transportable device (Tapes, CD’s, LP’s et al) have declined 76.3% Apparel Manufacturing. Has declined by 77% over the past decade. Simple reason. Music Stores. In the past decade almost 80% of all music stores have closed down in the USA.

LP 118

LP New York Video Developer 118

Feld Thoughts

APRIL 6, 2010

LPs : I only had one email from an LP. There are plenty of people – namely all the lawyers that work with startups – that have a much greater incentive than I do to get this right, be efficient for the entrepreneurs they work with, and be cost-effective for the companies they bill. It was a short one.

Term Sheet 118

Term Sheet LP Finance Email 118

thebarefootvc

MARCH 8, 2012

However, while the cost of starting a tech company has plummeted this past decade, for the most part it still takes significant dollars to grow and scale game-changing companies. I helped launch NYCSeed in 2008 in response to the lack of seed funding available in NYC. Now we have an overabundance of capital at that stage.

Silicon Valley 69

Silicon Valley Ghana Venture Capital India 69

David Teten

JANUARY 21, 2021

Prasanna Krishnamoorthy, Managing Partner, Upekkha Value SaaS Accelerator, said, “We are the first fund which combines an Angel List rolling fund structure for making LP access widely available, while using the variable VC model of giving founders the option to buy back their equity at a later stage, ensuring founder optionality.

Equity 78

Equity Revenue Cofounder Colorado 78

This is going to be BIG.

JULY 30, 2015

One of the first things I did when I joined the venture asset class as a lowly institutional LP analyst in 2001 was to build the VC fund cashflow model. Second, their dollars dollar cost average at cheaper entry prices. Here's another way to look at it--the cost of capital argument. But what does the model say? So here goes.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60