Venture Capital Returns

A VC : Venture Capital and Technology

This post is for everyone who thinks venture capital is an easy business. Here are short term and long term returns for the venture capital business over the past ten years compared to the public equity markets in the US. Venture Capital and Technology

Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? I have never come across a sophisticated A, B or C round venture capitalist who thinks convertible notes are a smart move for entrepreneur or investor. ’ But do you want to start a relationship with your most important supplier – that of capital to fuel your business – by avoiding talking about his or her expectations in terms of rights or privileges? Try doing THAT with equity.

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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).

Q316 State of Venture Capital Update With Cooley

Feld Thoughts

This quarter they interviewed me as part of it on Quarterly VC Update: Brad Feld on the State of Venture Capital Investing. At the same time, if you are a clearly successful growth company, there is a huge amount of capital available once you’ve reached a point of clear success (often after $20m – $40m has been raised). There is a huge capital supply gap for companies that are in between early startups and companies that are successful growth companies.

The Rise of Chinese Venture Capital – (Part 3 of 5)

Steve Blank

This post is about the rise of Chinese venture capital and how it helped build the countries entrepreneurial ecosystem. The Rise of Chinese Venture Capital. SBIR and STTR programs, the Torch Program’s funding for new ventures was limited to seed funding the front end.

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. We published the paper in the Journal of Private Equity and numerous other influential media. Education ff Venture Capital Startup

Ten Good Reasons to Take Venture Capital Money

This is going to be BIG.

Following up on my post from Monday that rang like "reasons not to take VC money" here are some reasons you should: 1) You really like the investor and believe they can add more value than you give up in equity. Might be time to let someone you want to work with buy your equity. 9) You''re doing something physical in the real world that just requires a certain amount of capital overhead. Venture Capital & Technology

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. They will be there long term, have significant equity and help making strategic decisions.

What I learned from raising venture capital

www.gabrielweinberg.com

I recently raised venture capital for the first time. DuckDuckGo raised a series A round from Union Square Ventures and a handful of awesome angel investors. They have a significant equity stake and other significant terms. They were: Andreessen Horowitz Matrix Partners SV Angel Redpoint Morganthaler Gerylock Charles River Ventures DFJ Having multiple term sheets really matters.

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!

6 Ways To Increase Your Odds of Landing Venture Capital

Early Growth Financial Services

This guest post was contributed by BJ Lackland, CEO of Lighter Capital. Running a growing tech startup with steadily increasing revenues might put you on the right track to being a successful business owner, but it doesn’t mean you’re on an easy path to securing venture capital. startups get venture capital. You might have a great idea, but an idea is not a product, nor is it … Continue reading → Investment Capital: Equity / Debt / VC Funding

What VC Can Learn From Private Equity

A VC : Venture Capital and Technology

I spent a week in Europe a few weeks ago with our friend Eric who is a managing partner in a private equity firm. I’ve also had the pleasure of working on a board of one of our portfolio companies with a private equity investor who is making a few minority investments. Venture Capital and Private Equity are very different investment disciplines. Venture Capital is minority investing. Venture Capital requires it.

Vietnam venture capital – potential unlocked

VC Cafe

Vietnam’s Ministry of Planning and Investment (MPI) has shared a circular (a regulatory document, in Vietnam speak) for improving the legal environment for venture capital investing in the Socialist state.

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). Chrysalis Ventures, SouthernVC (15).

The Singularity hits Venture Capital (Wilson/Kauffman Redux)

Fred Destin

I mean, really, who still wants to be a venture capitalist ? 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. Venture partnerships need to collectively find winners and drive as much cash at reasonable valuations as they can into these stars.

Why being a VC sucks. Advice to anyone who wants to get into venture capital.

This is going to be BIG.

I probably get around a dozen e-mails a week asking me how to get into venture capital. On top of that, anytime I talk to anyone who wants to get involved in startups but isn''t sure what they want to do, inevitably, I hear, "And then I was thinking maybe I should look into venture capital, too.". I''ve never really debated people on why they want to get into venture in the first place, even though a lot of people have misconceptions of it.

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. What’s happening to cleantech venture capital? Philanthropic capital.

A framework to think about pricing seed, angel, and venture capital rounds

This is going to be BIG.

2) Supply and demand of capital willing to invest in your company. Sometimes, this also relates to capital requirements of what the team needs. Note that, to even get venture in the first place, you are special. Venture Capital & TechnologyHow do you price a round?

Venture Capital Exit Times

Angel Blog

My two previous posts described how venture capital investors will want to invest too much and exit only for very high returns. Venture capital exit times extremely long - much longer than you probably realize.

That new era of Venture Capital is here

Seth Levine's VC Adventure

A couple of years ago I posted about what I thought would be the “new era of Venture Capital.” From that post: I believe what we’re going to see in the venture industry is a bifurcation of fundraising– basically a barbell on the graph of fund sizes. Venture Capital VC Fundraising VC Industry Venture Fundraising Venture Industry” Specifically I was predicting that we’d see a strong barbell effect in VC fundraising.

Founder Liquidity and Growth Equity

Non-Linear Growth

I’m seeing more and more growth equity financings come to market with an over-sized component of the financing allocated to existing shareholder liquidity. … Read more › The post Founder Liquidity and Growth Equity appeared first on Non-Linear.

Do venture capital firms or private equity funds offer debt financing for startups?

Gust

For venture capital, this is typically ten times the invested capital, and those returns can only be achieved through equity appreciation, not debt service. Invested Interests debt financing private equity funds startup VCs venture capital firms The direct answer to your question is NO, VC and PE funds do not provide debt financing for any companies.

Growth Equity Investors are Hedgehogs; VCs are Foxes

Non-Linear Growth

Growth equity is increasingly being recognized as an investing discipline that is separate and distinct from venture capital. That being the case, how does one distinguish between a venture capitalist and a growth equity investor.

Private Equity And Venture Capital Investors: How to Leverage Their Pessimistic Thinking

Growthink Blog

Interestingly, when he said that, I felt like a venture capitalist. You see, venture capitalists or VCs hear tons and tons of business ideas. Interestingly, I went to business school nearly 15 years ago with several bright guys who became venture capitalists.

How To Allocate Founder and Employee Equity

A VC : Venture Capital and Technology

It never makes sense to give anyone equity without vesting. The thing I love the most about Joel's post is he throws darts into a lot of conventional wisdom about founder equity allocation. I particularly like his notion that the person with the idea should not command a premium on equity allocation. Founding teams that allocate the founders equity fairly stay together a lot more than founding teams where one founder has a much better deal than the others.

Convertible Debt, Priced Equity Rounds and Deal Timing

Gust

An impromptu Twitter debate arose among Fred Wilson, Dave McClure, Mark Suster, Chris Dixon and others about convertible debt, priced equity rounds, and the nuances of early stage financing. Invested Interests angel investment convertible debt convertible note deal terms due diligence financials fundraising priced equity priced rounds tactics valuation valuations VCs venture capital

Venture Capital Access Program launches to aid women and diverse entrepreneurs

David Teten

VCAP© Addresses the Gap between Venture Capital and Funding for Women and Diverse Entrepreneurs. The National Association of Investment Companies (NAIC) is the trade association representing women and diverse private equity and venture firms.

Bootstrapping with Brad Feld

Ask The VC

Board of Directors Debt Equity VC Bloggers Venture Capital Boulder Colorado Brad Brad Feld Foundry Group Startup Weekend techstars United StatesTom and Tony of tastytrade talk with Brad about Foundry Group, Techstars and Bootstrapping… Related articles.

What's in a (venture capital) website ?

Fred Destin

Late on Friday we launched the new website of Atlas Venture. One of the challenges that all venture capitalists are dealing with is that we are all peddling essentially the same product. The bottom line is we all sound pretty much the same , so what is a venture capitalist to do ?

The Great European Venture Capital Crisis

Fred Destin

The exercise of drawing up target list of investors has been a depressing one, for the European venture landscape is starting to look extremely depleted. We have three clearly dominant firms based out of London, in the form of Accel Partners, Balderton Capital and Index Ventures. European venture capital is out of favor with LP's. The wonderful White Beat Yard / Passion Capital initiative is one such example. Venture Capital *Notable Europe

Pitching to VCs and The Entrepreneurial Bible to Venture Capital

SiliconHills

So start making friends with the right […] The post Pitching to VCs and The Entrepreneurial Bible to Venture Capital appeared first on SiliconHills.

Financing your business: Debt vs Equity

StartupCFO

VentureBeat wrote a post recently on debt versus equity which one is right for your business. So what I would like to do here is layout a more comprehensive framework for the pros and cons of debt versus equity and when you could look at each for financing your business. Equity.

For Equity Investors, A Startup Has To End To Win

Startup Professionals Musings

Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual. entrepreneur equity investors IPO startup exit

Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

Yesterday I wrote Part 1 of the series on the changes to the software industry over the past decade that has led to changes in the venture capital industry itself. Or at least venture-style returns. Not to mention providing the capital for growth.

Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First

Both Sides of the Table

I know that the tone of the title and post will seem a bit aggressive for a post from a venture capitalist on fund raising. If you want to raise venture capital more easily the advice could be quite practical and counter-intuitive. Clean up your own shite.

Equity Crowdfunding: Is it Right for Your Business?

Early Growth Financial Services

Though still not fully phased in, the Jumpstart Our Business Startups Act (JOBS Act) which Congress passed in January 2012, kicked off a wave of business and investor interest in (and platforms to facilitate) equity crowdfunding.

Angel Investors, Venture Capital, Which Should You Chose?

Growthink Blog

And such was the case when I read the latest statistics from the National Venture Capital Association (NVCA). The seemingly good news from the NVCA was that the amount of venture capital funding grew 22% from 2010 to 2011.

A VC Puts On His Equity Crowdfunding Hat

YoungUpstarts

By Tom Walker, CEO Rev1 Ventures. It’s been about three months since equity crowdfunding was opened up to all Americans. This change means that virtually any individual, not just the wealthy, will have opportunities to make equity investments in early stage companies.

Why You Don't Need Venture Capital

Inc Startups

So often, young entrepreneurs think the viability of their fledgling company depends on their ability to intrigue investors and raise capital. But the truth is, raising capital is often a pipe dream. Don't get discouraged, though: Raising capital should be the least of your concerns. And pitching your company to venture capitalists is about as effective as chasing clouds. This is not to say that capital is not an integral part of expanding your company.

Texas Proposes Equity-based Crowdfunding Rules

SiliconHills

By LAURA LOREK Founder of Silicon Hills News In Austin, one of the big issues facing startups, particularly in the technology industry, is lack of access to capital. Last year, Austin companies received $626 million in venture capital, or 49 percent of the venture capital dollars for Texas, said Michele Skelding, senior vice president of […] The post Texas Proposes Equity-based Crowdfunding Rules appeared first on SiliconHills.

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