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Venture Capital is About Human Capital

Both Sides of the Table

Most VCs did well academically and had enough career success that a venture firm was willing to give them an investment role or they were able to raise their own fund. Fundamentally venture capital is about human capital. Venture Capital is a people business.

Entrepreneurial Density and Venture Capital

Feld Thoughts

Two of his latest articles talk about entrepreneurial density and venture capital. The Connection Between Venture Capital and Diverse, Dense Communities. For a long time I’ve suggested that an interesting measure of entrepreneurial density would be ((entrepreneurs + employees of startups) / total population). In it, he looked at Venture Capital financing (total dollars and number of deals) on a per-capital basis.

Pioneering Women in Venture Capital: Kathryn Gould

Steve Blank

Kathryn has been the founding VP of Marketing of Oracle , a successful recruiter, a world class Venture Capitalist, a co-founder of a Venture Capital firm, a great board member, one of my mentors and most importantly a wonderful friend. So I started Foundation Capital in 1995.

A Venture Capital History Perspective From Jack Tankersley

Feld Thoughts

In January, Jerry Neumann wrote a long and detailed analysis of his view of the VC industry in the 1980’s titled Heat Death: Venture Capital in the 1980’s. The key reason for the explosion in capital flowing into the industry, and therefore the large increase in practitioners, had nothing to do with 1970’s performance, early stage investing, or technology. Continental Capital*. $ 250,000. KPC&B II. $ 775,000.

Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. It’s like we need a finance 101 course for entrepreneurs. This week.

Venture Capital Funding: A Curated List of Our Best Resources

Up and Running

Getting venture capital funding to launch your business is incredibly difficult. In fact, fewer than 1 percent of businesses that start every year get venture funding. Is venture capital right for you? 12 of the Hottest Venture Capital Firms in 2016.

Changes in the Venture Capital Funding Environment

Both Sides of the Table

There was an explosion in number of startups both because it was cheap and there was tons of available capital. But there are two major trends worth understanding that most VCs know by now and I suspect most entrepreneurs do not. Be thoughtful about from whom you raise capital.

Venture Capital Demystified: A Fundraising Guide for Entrepreneurs, Investors, and Lawyers

YoungUpstarts

by Jason Mendelson and Brad Feld, co-authors of “ Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist “ So, you’ve got a brilliant idea and you’re ready to launch a company.

17 Venture Capital Blogs You Should Be Reading

Up and Running

Whether or not you’re raising money for your business, getting advice from venture capitalists can be invaluable. Inside the Minds of Top Venture Capitalists: Blogs You Need to Read to Understand How VCs Think. Andrew Parker is a VC with Spark Capital in Boston.

Where Do Venture Capital Dollars Actually Come From? This Visual Explains

Agile VC

Most folks reading this will know that many startups were built in part with the help of venture capital. So I wanted to dive a little deeper into what I call the startup capital supply chain. Google, Intel Capital).

Why Was Winter in Venture Capital Funding so Short?

Both Sides of the Table

It was only a year ago that many in the Venture Capital industry were predicting that “winter was coming” and to be fair the author of this post was chief amongst them. While this it total FDI as opposed to just venture, it should give you an indication of the international trend.

It’s Morning in Venture Capital

Both Sides of the Table

Many observers of the venture capital industry have questioned whether its best days are behind it. The movie, “The Social Network” might have had more of an impact on creating future entrepreneurs than any other event of the past 5 years. This article originally ran on PEHub.

6 Steps to Raising Venture Capital in 6 Months

Gust

To raise capital as a very early-stage business, you have to convince investors that your current size isn’t indicative of where you will be in the future. Recently, I met with an entrepreneur to discuss her financing strategy. Andrew Weinreich is a serial entrepreneur based in NYC.

Why The SBIC Doesn’t Work For Venture Capital Anymore

Feld Thoughts

And, in the other two, I don’t expect to ever see any of my capital back because of the SBIC leverage. The SBIC was instrumental in the creation of the venture capital business. If you want to see a fun quote on it, read A History of Silicon Valley which quotes: “ …many venture capital pioneers think the SBIC program did little to advance the art and practice of venture investing. Peter Adams, head of Rockies Venture Club, is quoted a few times.

SBIC 51

Book: The Business of Venture Capital

Feld Thoughts

In the fall of 2010 Mahendra Ramsinghani reached out to me by email about a new book he was working on called The Business of Venture Capital: Insights from Leading Practitioners on the Art of Raising a Fund, Deal Structuring, Value Creation, and Exit Strategies. I was deep into writing Venture Deals: Be Smarter Than Your Lawyer and VC with one of my other partners – Jason Mendelson – and it was neat to see how Mahendra’s book complimented ours.

Myth Busters: Debunking Seven Conventional Wisdom Maxims of Venture Capital

Genuine VC

Compared to most other areas of finance, venture capital is practiced as more of an art, as opposed to a science. The art of venture capital also means that for entrepreneurs raising it, there isn’t one definitive playbook which can be used as a guide. Entrepreneurs should remember that while these targets are real, they’re just that – targets. MYTH: Goal of entrepreneur’s VC fundraising is a term sheet. MYTH: The venture capital model is broken.

Valuations 101: The Venture Capital Method

Gust

The Venture Capital Method (VC Method) was first described by Professor Bill Sahlman at Harvard Business School in 1987 in a case study and has been revised since. It is one of the useful methods for establishing the pre-money valuation of pre-revenue startup ventures. Most angels understand that half of new ventures fail and the best an investor can expect from nine of ten investments is return of capital for a portfolio of ten.

Why I Look for High Conviction, not Consensus, in Venture Capital Decisions

Both Sides of the Table

One of the least understood parts of the venture capital industry and venture capital firms is how investment decisions actually get made. The beauty of venture capital is that on any given deal I can only lose one times my money.

How To Grow A Company Without Venture Capital

YoungUpstarts

As an entrepreneur, though, you should look no further than Fab.com as a cautionary tale of venture capital. The Drawbacks of Venture Capital. Some companies and business models need venture capital to succeed, but the numbers prove that most don’t.

Deal Selection in Venture Capital

Rob Go

This is only becoming more common as entrepreneurs are getting smarter about fundraising, and more transparency exists in how companies are doing. I think certain entrepreneurs tend to thrive in certain environments and certain times. Source, Select, Win.

Venture Capital Investors Look Beyond Your Startup

Startup Professionals Musings

Obviously, a key factor is always the state of the economy and the mood of the venture capital community. On the other hand, venture capital doesn’t get smoothly spread across the geographic and demographic landscape, and the number of active venture capital firms has dropped sharply.

Got "Founder Fit?" If You Want Venture Capital, You Need It

Up and Running

A few weeks ago I spoke with Boris Wertz, founder of JustBooks, COO of AbeBooks and founding-partner of Version One Ventures. In ” At present, Version One Ventures portfolio includes startups from all over the United States and Canada. Boris Wertz. Image credit Flickr.

How ff Venture Capital Works With Universities And Students

David Teten

I meet with a lot of people from the academic world, so I thought it would be helpful to summarize how ff Venture Capital works with universities. I provided research materials, guidance, and introductions to interviewees (VCs, entrepreneurs, accelerators, etc.)

Dos and Don’ts When Raising Venture Capital For the First Time

VC Cafe

The post “ What I learned from raising venture capital ” by Gabriel Weinberg , the founder of DuckDuckGo is one of them. WHAT TO DO WHEN RAISING VENTURE CAPITAL. WHAT NOT TO DO WHEN RAISING VENTURE CAPITAL.

The Big Secret to Raising Venture Capital

Growthink Blog

At the time, Tom was a partner at Enterprise Partners Venture Capital in San Diego. At the time (around 2003), many venture capital firms were licking their wounds. During the six months, he would see what the entrepreneur was able to accomplish.

On historical returns and venture capital flavours

Fred Destin

Story of of the last few years in Venture Fund Land : large institutional investors concentrate money with fewer managers and flagship brands AND / OR find emerging managers. We've found capital constraints to be a great friend. AtlasVenture Investors Uncategorized Venture Capital

Venture Capital's Newest Frontier

Inc Startups

Hundreds of new funds and a new type of entrepreneur are driving growth today

Why are some venture capital firms not funding women?

Gust

The facile answer to this assumptive question is “because some women are not seeking funding from venture capital firms” But there is actually quite a bit of truth in both statements. Women-led ventures definitely account for a smaller percentage of venture investments than do ventures led by men, but women-led ventures also account for a MUCH smaller percentage of ventures seeking funding in the first place!

What I learned from raising venture capital

www.gabrielweinberg.com

I recently raised venture capital for the first time. However, please bear in mind my lack of experience in these matters and that this post is written from the company/entrepreneur perspective. DuckDuckGo raised a series A round from Union Square Ventures and a handful of awesome angel investors. You see firms backing the same entrepreneur again and again. Takin' VC Money (Money Cash IPO's) by Smixx Forewarning Be forewarned, this post is long.

Startups With Real Revenue Can Get Venture Capital

Startup Professionals Musings

I just read the Q1 2011 report from CB Insights , which shows venture capital is back. To me, this indicates that venture capitalists (VCs) are looking for business, but not from first-time startups. Back to VCs, Silicon Valley venture capital firms are still the most active.

10 Misperceptions About Venture Capital

This is going to be BIG.

Not every company raises venture capital—most don’t. Whenever I ask an entrepreneur to e-mail me, I can tell they’re feeling like I’m brushing them off. I get paid to do this and I absolutely want to engage with smart entrepreneurs. Sometimes the best conversations start out when an entrepreneur is in the process of trying to find out whether he should even get funding or not. Venture Capital & TechnologyTweet. 1) You need it.

Will Your Startup Get Venture Capital or IPO in 2013?

Startup Professionals Musings

Based on the final report for 2012 from Thomson Reuters and the National Venture Capital Association (NVCA), it may appear that IPOs are back as a viable startup exit strategy. For the full year 2012, venture-backed initial public offerings raised $21.5

When, Where, and How to Raise Venture Capital

Startup Professionals Musings

By Dave Lavinsky, President and Co-Founder of Growthink At one point or another, most entrepreneurs find themselves in a place where they could use money. These entrepreneurs often dream about how much they could accomplish if they had millions in the bank.

On Human Capital & Venture Capital

thebarefootvc

As an entrepreneur at heart, I often innately grasp the potential of entrepreneurs and ideas that I meet with. These days, I am seeing a large number of first time entrepreneurs with great ideas, which is fantastic to see.

Venture Capital (VC) Blog Directory – 2011 Edition

Thinking About Thinking

This is the 4th edition of the Venture Capital Blog Directory ( 1st edition , 2nd edition , 3rd edition ). This directory includes 149 venture capital, microVC/seed, and growth equity blogs. Many thanks to my colleagues at Volition Capital for their assistance with this directory - we hope it’s a useful service for everyone. . Fred Wilson ( @fredwilson ), Union Square Ventures, A VC (81,483). Mike Speiser, SutterHill Ventures, Laserlike (490).

Why Venture Capital No Longer Defines Innovation

ReadWriteStart

Today’s venture capital deal flow to innovative new companies looks a lot like a fat man trying to squeeze into a slim Italian suit. In 2000, venture capitalists poured a staggering $112.2 Today, venture capital deal flow has slowed to a relative trickle, just $28.4

Venture Capital: Practicing Blind Faith

Babbling VC

If you're an entrepreneur or in the VC space, you should know the difference. Who are my favorite entrepreneurs? Venture capital in general, especially in Europe, is a practice in blind faith right now. The batshit crazy entrepreneurs I'm surrounded by every day. . I planned on making it more of a pep-talk since we constantly hear so much negativity in regards to European venture capital. There is a huge difference between optimism and blind faith.

How to get a job in Venture Capital

Jason Ball's TechBytes

So, these are some of the things that are good to start with: 1) Be an entrepreneur. Being a wildly successful entrepreneur turned awesome VC is clearly the preferred route. If you can fix one (or more) venture backed co’s, you will be loved and will probably find yourself a more permanent role. Analyst, Associate, Principal, Venture Partner, General Partner, Managing Partner – all require different amounts of the above. Venture Capital

The Singularity hits Venture Capital (Wilson/Kauffman Redux)

Fred Destin

I mean, really, who still wants to be a venture capitalist ? For all we know VC's might start to feel and act more like entrepreneurs by the time we are done with all of this. And then we have Fred Wilson telling us that should venture capital die, there's always be blogging. I an now expecting Chris Dixon to say he is turning to Venture Capital , and then I will be officially confused. The schizophreny of the venture capitalist.

The State of Cleantech Venture Capital: What Lies Ahead

Secret Formula

In late 2011 I decided to write up an internal analysis I’d done at Venrock about the state of cleantech venture capital and make it available broadly. I’ll frame this analysis with the questions I’ve gotten from VCs and entrepreneurs who’ve asked me for an update.