Both Sides of the Table

JULY 22, 2010

This states how the proceeds from a sale or dissolution of the company will be distributed. VC’s in early rounds will argue that “participation&# is simply downside protection and if you sell for a lower price they should get more of the proceeds. This is a shame. This is silly talk. You reap what you sow.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Gust

JANUARY 4, 2012

Later stage companies have some additional concerns: What favorable impact could IP have for PR, marketing and investor relations purposes, or as an attraction to potential acquirors? The amount of investment in IP in any direct sense is generally small for early stage startups. In practice, this leads many U.S.

Intellectual Property 143

Intellectual Property IP Startup United States 143

View from Seed

SEPTEMBER 14, 2021

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. So, four years later, DPI is still trying to catch up with TVPI from 2017. This looks more or less true for both TVPI and DPI.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

David Teten

JULY 25, 2017

We also have a better known brand than some of our early stage companies, so we can leverage that to help source talent. Most importantly, we have regular meetings with later-stage VCs and enterprise clients both in the US and internationally to discuss our companies which fit their investment mandates.

Portfolio 60

Portfolio Technical Review Private Equity Database 60

VC Adventure

MAY 5, 2022

BUT (and you knew there was a but here given the post title…) it’s a poor way to compare the relative performance of funds early, and even into the mid/later, stages of a fund’s life. This is a mistake. Some of those companies will be successful. Many will not. We’ll know eventually. But not now.

IRR 116

IRR Metrics Valuation LP 116

The Equity Kicker

MAY 31, 2016

The conclusion of the report is that returns in venture capital are distributed across a larger number of companies and across a wider number of venture capital funds than is widely believed. Their advice to LPs is to catch these distributed returns by investing in emerging managers outside of traditional US venture heartlands.

Venture Capital 60

Venture Capital Early Stage Dilution Later Stage 60

Both Sides of the Table

MAY 30, 2018

Many VCs will have a distribution curve where they’ll do a small number of early-stage deals (say $1.5–3 3 million invested at a $6–10m pre-money), a larger number of “down the fairway” deals ($4–5 million at a $15–25 million pre) and a few later-stage deals (say $8–10 million at a $30–40 million pre).Of

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

VC Adventure

APRIL 16, 2018

That’s true no matter the size fund you’re investing (I’m referring to early stage funds here but a version of this is true even for larger, later stage funds; although a higher level of concentration in later stage funds is actually helpful).

Portfolio 75

Portfolio Later Stage Early Stage Angel Investor 75

View from Seed

APRIL 7, 2015

Dirty Secret #1: An early-stage startup’s design actually does matter. It probably shouldn’t be the case, but the look and feel and polish of your materials makes a big difference for early-stage investors. But at the early stages, it’s surprisingly impactful.

Early Stage 120

Early Stage Founder Later Stage Engineer 120

Both Sides of the Table

JUNE 28, 2011

They built industrial-scale funds dedicated to backing early-stage startups with $500k rather than $5 million. More recently great funds like IA Ventures, Floodgate, Rincon Ventures, Founder Collective, Freestyle Capital and others have raised money to focus on early-stage investing as a strategy.

Venture Capital 334

Venture Capital Software PHP Open Source 334

Ben's Blog

APRIL 7, 2021

As companies and cities wrestle with the future of work, future of cities, and future of tech made possible in a post-COVID future, the question is whether it also impacts — and presents an opportunity to address — one of the greatest problems of our time: the unequal distribution of economic opportunity across the United States.

Silicon Valley 36

Silicon Valley Non-Compete San Francisco Government 36

Both Sides of the Table

MAY 25, 2013

As you can see from the chart their data suggests there are about $25 billion of VC distributions per year in the US. But the larger funds usually have lower returns because they are often investing bigger dollars at later stages with less risk and therefore lower returns. The top 2% do not drive 98% of the returns. Yeah, true.

LP 374

LP Later Stage IRR Term Sheet 374

David Teten

DECEMBER 3, 2019

Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. Later stage investors are using for sourcing private company marketplace services focused on more established companies, listed below under “Step 11: Exit”. Results from a Survey of Early-Stage VC Funds.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Startup Lessons Learned

MAY 31, 2019

As you probably know, we’ve been investing against a consistent theme - Marc Andreesseen’s “software is eating the world” - and always at multiple stages of a company’s growth - from seed to later-stage venture. Sure - as you know, probably 40-50% of what we invest in at the early stage never makes it to a successful outcome.

Lean 108

Lean Venture Capital Conversion IPO 108

Small Business Force

FEBRUARY 21, 2014

In early stage companies (and even some later stage or mature ones), there is no one area where most entrepreneurs and small business owners are lacking in just basic fundamentals, than in dealing with their company's finances and financial management. If it was a distribution business, shipping costs were critical.

Finance 37

Finance Management Forecast Entrepreneur 37

Both Sides of the Table

JUNE 29, 2011

Some have done earlier-stage deals and done well. Others have chased earlier-stage but lack the skills or relationships to do this effectively. Some have moved into later stage investments in an effort to “put logos on their websites.&# The Explosion in Early-Stage Innovation. There are also others.

Venture Capital 296

Venture Capital Software LP Early Stage 296

Austin Startup

MARCH 7, 2021

San Antonio has Geekdom with USAA and Port San Antonio with the Air Force Cyber Command; Houston has The Ion with Rice University, Microsoft and NASA and The Cannon distributed across the city; Dallas has Pegasus Park with UT Southwestern and Lyda Hill Philanthropies; and Austin has Capital Factory with the Army Futures Command.

Texas 90

Texas San Antonio Houston Dallas 90

Genuine VC

MAY 20, 2013

REALITY: The earlier-stage an investment is for a venture firm, the more the bet is on the team, the more reticent they are to want to change the core DNA of the company. At the early stages, the primary investment thesis rests on the team, rather than the idea or market (which are less unique and more easily fungible).

Venture Capital 244

Venture Capital Cap Table Portfolio Early Stage 244

Austin Startup

JUNE 26, 2019

By the by, women donors, I recommend diversifying some of your capital distributions to reap that ROI to keep doing good… (+ this is a whole ‘nother blog post…) Undeterred. And, there were unexpected delays and conflicts from some incredible innovation partners committed to childcare and early childhood education (ECE). (Yes,

Silicon Valley 54

Silicon Valley Startup B2C Sweat Equity 54

A Crowded Space

AUGUST 4, 2011

Pretty much as any early employee will do, I did everything from sales to running product, to operations, and community and customer service, and then really spent the bulk of my time there in marketing and business development. So it’s a powerful tool for social proof and distribution and evangelism.

Technical Review 60

Technical Review Venture Capital San Francisco Boston 60

Professor VC

DECEMBER 8, 2015

Luckily, Google was one of the 150 and did ultimately return the fund assuming the LP was smart enough to hold the stock after distribution. I originally got to thinking about this when I received a 485 page information statement on a previously announced merger between Clean Power Finance and Kilowatt Financial.

Merger 28

Merger LP IPO Redemption 28

abovethecrowd.com

APRIL 20, 2016

Some later-stage investors may be tempted to become Sharks themselves and start including structured terms into their own term sheets. Never in the history of venture capital have early stage startups had access to so much capital. Competition also has access to capital. Take as much market share as you can.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

David Teten

MARCH 18, 2021

A typical VC thesis: “we invest in tech startups in Europe at an early stage” However, our experience shows that in many cases: . Thirty-four VC firms in OpenVC call themselves “early-stage” Yet, 30% of those don’t actually invest in pre-revenue startups.

Technical Review 78

Technical Review Cofounder Venture Capital Deal Flow 78

techcrunch.com

OCTOBER 23, 2010

One of the things I do as a founder of a later stage startup is to meet with early stage entrepreneurs to help them get their companies going. I too am looking for someone to work with that knows the manufacturing and distribution end of a solid product. Twitter is an excellent distribution channel for us. (B)

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84

Up and Running

MAY 13, 2015

Noah describes this as this idea of like if you’re early stage you need some money to get off the ground. Maybe a later stage business might need some money for working capital and that kind of thing. What’s the next bullet point that I need to answer? Jonathan: Yeah. I’ve got this covered completely.

Business Plan 60

Business Plan Marketing Oregon Small Business 60

Up and Running

DECEMBER 9, 2014

They cover funding for small businesses from the initial funding stage to later stages of growth, and other areas in between. For this discussion, we were joined by CEOs Jared Hecht of Fundera, Joshua Reeves of ZenPayroll, Matt Rissell of TSheets, and our own Sabrina Parsons of LivePlan and Palo Alto Software.

Small Business 95

Small Business Finance Forecast Metrics 95

pandodaily.com

NOVEMBER 29, 2012

This time around, there has been an explosion at the early stages, and the very late pre-IPO growth stages. But at a macro level, widespread failure this early is far less painful than if it came at later stages. Chill Direct: Direct to fan content distribution. In fact, if anything, there are fewer.

Technical Review 93

Technical Review Silicon Valley Incubator Syria 93