Both Sides of the Table
JULY 16, 2010
Consumers pulled their money out of these risky investments, but when LPs make commitments to VC funds they make 10-year, legally binding commitments. So as of 2008 total LP commitments were still at nearly $250 billion. I was at dinner with a large LP and mentioned that I had heard the industry would shrink by 50%.
Both Sides of the Table
SEPTEMBER 22, 2012
“Lean” is great in the early days but if you discover an attractive market opportunity you need to get “fat” really quickly or somebody else will. Instant growth = huge valuation from follow-on investors = big VC mark-up on our quarterly reports = LP interest. Grow or die. It is VC math, like it or not.
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Hunter Walker
APRIL 27, 2014
Last week we held our first annual LP meeting, when venture funds get their investors together with updates on operations and results. I’ve written before about our fundraising process and how it very much resembles that of a startup. There were four basic sections: 1) What We Said We’d Do & What We Did.
Babbling VC
JANUARY 7, 2011
I personally believe that one of the major drawbacks to venture capital in Europe is chronic under-financing and people skirt around this issue. We keep hearing about lean start-ups and how much costs have dropped when launching and growing a business. Even Dropbox and Etsy have done far larger rounds to finance their growth.
The Equity Kicker
JULY 8, 2019
This is what brings us to the second big difference: the cost of Applied Venture is too large to finance from a standard VC management fee. . Different funds finance the cost of these teams with a differing weighting of asking portfolio companies to pay for services, larger than normal management fees, and reduced compensation for partners.
David Teten
DECEMBER 3, 2019
Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP. We are also seeing technology evaluation as an increasingly important part of LP operational due diligence.
Bryce Dot VC
NOVEMBER 19, 2012
That said, we’ve seen a parallel trend wherein the vast majority of LP capital is being consolidated to a handful of the top firms who’s bar for follow on financing is incredibly high.
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