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

VC Adventure

MAY 5, 2022

Recycling is how funds pay back their management fee and invest the full amount of the fund that they raise (consider a theoretical $100M fund with a 2% management fee for the 5 year investment period and a 1% fee for the tail 5 years; that fund would have to generate $15M of recycling in order to cover the fees that they charge investors).

IRR 116

IRR Metrics Valuation LP 116

Both Sides of the Table

FEBRUARY 6, 2019

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 get into a high-growth company and you have asymmetric information on how the management team is performing?—?this

Venture Capital 292

Venture Capital IPO Mezzanine Early Stage 292

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 as an LP you can’t count on that any more than VCs can. The goal of an LP is to get into the top decile. In 2000 our industry had more than $100 billion in LP money. Take for example Accel.

LP 374

LP Later Stage IRR Term Sheet 374

Both Sides of the Table

APRIL 21, 2020

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.

Marketing 263

Marketing Valuation Churn Rate Balance Sheet 263

Feld Thoughts

JULY 28, 2014

On paper, only one is in positive return territory as a fund, but the SBIC leverage is a substantial negative factor for the LP investors in that particular fund. As a partner in one of the most visible VC firms in Colorado and an LP in many of the Colorado VC firms, I’ve never heard from Matthew or anyone from the SBIC.

SBIC 142

SBIC Venture Capital Colorado SBA 142

View from Seed

DECEMBER 11, 2019

Venture is a field with a power-law distribution of outcomes. There are Managing Directors, Senior Partners, and various other levels & shades of the Partner title. As a result, paper markups are weak and temporary signals of feedback, at best. VC performance signal-to-noise-ratio is low. And that’s for the successful investors!

Venture Capital 204

Venture Capital Cap Table Partner LP 204

David Teten

DECEMBER 3, 2019

However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and. 1) Manage the firm . This is harder than it sounds.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

David Teten

SEPTEMBER 2, 2017

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. So assessing fit is critical.

Private Equity 60

Private Equity Venture Capital Equity Partner 60

Hunter Walker

MAY 18, 2015

They provide assistance to Californians in building a vibrant, successful and inclusive society, distributing more than $1.5b These managers sit in our Privates bucket and are therefore expected to beat the public markets by at least 4.5%. We probably meet with twenty venture managers a year. in nonprofit grants to that extent.

LP 48

LP Portfolio Early Stage Institutional Investors 48

David Teten

DECEMBER 12, 2017

(written by Philipp von dem Knesebeck , Managing Partner, Blue Future Partners (bluefp.com, @bluefutureteam ), and David Teten ). Lisa Edgar, Managing Director at fund of funds Top Tier Capital Partners , observed: “It’s not surprising that venture capitalists are using software to help manage their business.

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

Both Sides of the Table

JUNE 29, 2011

It’s as though we forgot the management mantra of the 90′s about “core competencies&# or the most common VC advice to entrepreneurs: Focus. The LP Community Hasn’t Yet Caught Up. Many LPs want to write checks of $10 million or $25 million because they themselves have billions of dollars to manage.

Venture Capital 296

Venture Capital Software LP Early Stage 296

Haystack

JULY 20, 2018

From an investment point of view, managing and deploying capital in the same physical area makes sense, where investors can work with young companies and help them with a variety of things. Over the past two years, however, I’ve felt that something is out of balance.

San Francisco 116

San Francisco Silicon Valley Seattle Venture Capital 116

Agile VC

JULY 24, 2013

I was having breakfast this morning from someone I know from the LP world. We were talking about what’s “working” in the broader VC ecosystem and this person expressed their enthusiasm that today there are a range of different models that are producing attractive returns for LPs. payday lending).

Valuation 200

Valuation Early Stage Distribution LP 200

This is going to be BIG.

MARCH 3, 2019

We do the work of sorting through the pitch decks of everyone and their mother, finding the diamonds in the rough, helping them turn an idea into something that looks like a company—and we do it for a fraction of the management fees of our later stage counterparts. That creates a tradeoff of paying up for more information.

Portfolio 110

Portfolio Burn Rate LP Distribution 110

Austin Startup

JUNE 26, 2019

If you’re a founder/product manager/business owner, I encourage you to find that out! 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 the outcomes. “If We boot-strapped some more. We side-hustled.

Silicon Valley 54

Silicon Valley Startup B2C Sweat Equity 54

abovethecrowd.com

APRIL 20, 2016

These mutual funds “mark-to-market” every day, and fund managers are compensated periodically on this performance. We have already seen examples of founders and management obtaining liquidity in front of investors. Cash distributions are what matter at the end of the day, bug big paper gains still make for good fundraising pitches.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

David Teten

MARCH 18, 2021

However, we’d argue that for most smaller managers who are not brand names, it’s better to be highly identified in your niche than being a generalist. Most LPs we speak with agree. . Foundry Group, investing primarily in “ Software and Internet ”, follows six major themes, e.g., Human Computer Interaction (HCI) or Distribution.

Technical Review 78

Technical Review Cofounder Venture Capital Deal Flow 78

Start Up Blog

APRIL 29, 2013

An era defined and dominated by the few who could afford the factories, the media and the distribution systems. Residents are collaborating to start, finance and manage public works projects and proving they can bootstrap a better job themselves. The top down era of one size fits all. And now it is over.

Uruguay 123

Uruguay Technical Review Vertical Las Vegas 123

Startup Lessons Learned

MAY 4, 2021

Can institutions be totally distributed or should they be rooted and loyal to a certain community or geography? And in this crypto algorithm, they said, well, since we're all making this distributed ledger, we now have provably unique digital items that I can send to you, Eric. Do we need more regulation in this area or less?

IPO 113

IPO Cofounder Technical Review Government 113