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How VCs Structure a Syndicate and Recruit Coinvestors

David Teten

GPs strategically invite trusted [Limited Partners and others] to co-invest, often based on the LP’s ability to add value or when the amount of capital required to complete an attractive transaction is larger than they are able to invest alone.”. 2) Investors with very specific value-add. Economic benefit. Market Insight.

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How to Scale a Venture Capital (or Private Equity) Fund

David Teten

– Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. Coinvestors need to figure out ways to prioritize themselves in a VC’s preference stack for syndicating opportunities. – Syndicate Special Purpose Vehicles (“SPVs”) for specific opportunities.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. See Why Are Revenue-Based Investors Investing in Women & Diverse Entrepreneurs? Less established regulatory framework. .

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

David Teten

Small investment firms often have interns and entrepreneurs in residence passing through, each of which is a security risk. See Bessemer Venture Partners’ A comprehensive guide to security for startups. Boardex and Relationship Science make it easier to understand and map social networks into potential limited partners.

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How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

A more efficient approach is to mine the data exhaust from the Limited Partner universe to identify those LPs most likely to find your fund attractive, and focus all your energy on them. Relationship Science makes it easier to understand and map social networks into potential limited partners. 2) Raise capital.

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What’s the difference between angels and seed VCs?

Hippoland

It would’ve been something like: Angels: Uses his/her own money to do investments Writes small checks Mostly sole decision maker VCs: Uses 3rd party money to do investments (from limited partners) Writes large checks Multiple decision makers and a concrete process But today, some of these things have changed. Like I mean a LOT.

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Angel Investing: Know (What Motivates) Thyself

Agile VC

Angel investing, particularly for entrepreneurs and others who’ve chosen a startup career path, can be rewarding in many different ways. As a VC investing not only personal capital, but on behalf of limited partners, one can’t take this strategy. ” But as an angel one can overweight this factor.