Both Sides of the Table

MAY 27, 2013

He has grown our US operations from 1 employee (him) to a global organization of 75 employees that will finish the year with 8-digit revenues (90+% recurring) and more than 350% year-over-year growth. What Rob wrote in his post is right. Rob is one of the most driven and successful CEOs I work with. Send Text messaging for rapid responses.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

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.

LP 97

LP Cofounder Term Sheet Valuation 97

David Teten

NOVEMBER 23, 2020

In its first full year of operation, VCAP attracted 159 applicants. – Forte has developed an innovative structure to finance vocational reskilling at no cost to individuals or governments. I was previously a Partner at two different VC firms, neither of which had any contractual LP mandate to invest in diverse companies.

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60

Haystack

JULY 20, 2018

Will the next company to raise $100M in financing just poach from decent seed-stage companies and pay triple the amount to lock up talent? Will folks be able to buy a house and raise their families here? Will the Bay Area’s cost structure compress the precious runway these newco’s have? These questions have been rattling around my brain.

San Francisco 116

San Francisco Silicon Valley Seattle Venture Capital 116

David Teten

JANUARY 19, 2021

John Berger, Director Operations & Impact Solutions, Toniic , observed that this has clear investor benefits: “ The grace period became a feature because it benefits investors in regions like the US where there can be tax differences between short and long term gains. “A Payments are commonly delayed for a grace period of 12-36 months.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

David Teten

MARCH 18, 2021

Avataar Ventures invests exclusively in companies which fit these criteria: “$15 Million + in Annual Recurring Revenues; Strong Tech-Led B2B & SaaS Companies; Core Operations in India/ South East Asia; Open to Active Partnering.” As such, there are 3 stakeholders when building a thesis: the investing Partners, the LPs and the founders. .

Technical Review 78

Technical Review Cofounder Venture Capital Deal Flow 78

Hunter Walker

SEPTEMBER 29, 2022

Most of this discussion is about ‘playing offense’ — working towards being a good steward of LP capital and the risk/reward associated with VC. As former product managers Satya and I lean towards having frameworks for these sorts of decisions, for both consistency and speed in internal operations.

Venture Capital 122

Venture Capital Cap Table LP Equity 122

Haystack

JUNE 1, 2018

Perhaps because of this success and the unique elbow grease they supply to their portfolio, it was shocking to many to see that one of the storied seed franchises would contract, become its own sole LP, and scale back its operations. There is a tremendous amount of money and new deals and financings.

LP 116

LP Global Social Media Portfolio 116

Agile VC

DECEMBER 6, 2012

This person is an experienced CEO and a veteran of several startups, yet appreciating this nuance of how VC’s operate their business was relatively unfamiliar to him. If Acme Ventures III, LP invests in Startup X then typically Acme Ventures IV, LP would not. Why is this?

LP 178

LP Balance Sheet Differentiation Limited Partner 178

Both Sides of the Table

JUNE 29, 2011

Open cloud led by Amazon with their AWS services drove total operating costs down by 90%. I believe some VCs have entered the early-stage market as simply an option on future financing rounds. The LP Community Hasn’t Yet Caught Up. My best guess is that new LP funds will be set up in the future to service Micro VCs.

Venture Capital 296

Venture Capital Software LP Early Stage 296

Start Up Blog

APRIL 29, 2013

While non bank business financing is currently miniscule by comparison, the numbers from kickstarter.com tell us something is brewing. Especially when the brand normally operate in an invisible category like washing powder. Crowd Funding – Is another great exemplar of the big end in town being disrupted.

Uruguay 123

Uruguay Technical Review Vertical Las Vegas 123

Hunter Walker

AUGUST 24, 2014

It’s for reasons like these that I support getting startup founders some liquidity during their company’s first few years, perhaps as early as Series A financing when appropriate. Or put startup expenses on their credit cards, far beyond their savings, hoping they can close financing for the company by end of the month.

Founder 108

Founder San Francisco Liquidity Event LP 108

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.

Portfolio 84

Portfolio LP Venture Capital Partner 84

Austin Startup

JUNE 26, 2019

With the help of advisors Ada Ryland and Wayne Lopez, we set up data-driven operation to get clarity on what and why we measured?—?and Do you want someone already making $12–17/hour watching your kid to make less (so a LP can make their returns…)? you win on 50% + 1 or you don’t…). and the outcomes. “If

Silicon Valley 54

Silicon Valley Startup B2C Sweat Equity 54

K9 Ventures

OCTOBER 12, 2015

That is because the venture capital industry operates in cycles. Not to mention that in later stages, high valuations can almost be fatal for some companies that don’t have the operating metrics to justify those valuations once the market turns. A 20x return becomes a 10x return and a 1x return could easily become a 0.5x

Venture Capital 48

Venture Capital Seed Stage LP Valuation 48

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. By the first quarter of 2016, the late-stage financing market had changed materially. Investors were becoming nervous and were no longer willing to underwrite new Unicorn-level financings at the drop of a hat. This is uncharted territory.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

K9 Ventures

OCTOBER 10, 2017

I’ll start with all the questions I can think of, from many different perspectives: founders, LPs, the press, and even other VCs. This post is intended to be a dynamic document, and I will attempt to update it from time to time with new questions that may arise or as financing trends evolve. Q: Define Pre-Seed?

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

Babbling VC

APRIL 22, 2013

I''ve been watching in amusement some recent financings and realized the getting has never been so good when it comes to venture capital. If they don''t get a homerun in the portfolio fast, their fund has no chance of ever raising additional money or even returning money to their LP''s. Again, your chance to squeeze into a deal.

LP 76

LP Venture Capital Portfolio Finance 76

Startup Lessons Learned

MAY 4, 2021

A few weeks ago, Coinbase , which facilitates buying, storing and purchasing cryptocurrency and also operates a cryptocurrency exchange, went public. Coinbase was founded in 2012 and operates a cryptocurrency exchange. And of course, I wasn't really interested in the finance side of it to me. I'm curious.

IPO 113

IPO Cofounder Technical Review Government 113

Professor VC

NOVEMBER 19, 2009

I attended the annual LP meeting for a venture capital firm this week and got into a discussion about the above question. The business environment is much more complex today, and the hopeful entrepreneur need to understand more of the environment in which they will operate. I also teach Entrepreneurial Finance at San Jose State.

San Jose 43

San Jose Silicon Valley Las Vegas Venture Capital 43

David Teten

AUGUST 21, 2019

Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. A company with that mindset is dramatically less risky, because it’s not dependent on the financing markets for continued viability. Most founders who are raising capital look first to traditional equity VCs.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

K9 Ventures

NOVEMBER 30, 2008

The birth of modern-day venture capital (not considering the European monarchs financing explorations and projects as venture capital) can be traced back to American Research and Development, which was started by Georges Doriot. The General Partners (GPs) are the operating guys. The LP perspective. Background.

IRR 48

IRR Venture Capital LP Early Stage 48