Both Sides of the Table

JULY 23, 2014

At the other end of the spectrum large funds have gotten even larger in the past few years which has massively increased the amount of consolidation in our industry as 66% of LP money into venture is now concentrated in late-stage or full-cycle VCs. The “big boom” in startup financing started around March 2009?—?more Why is this?

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

David Teten

NOVEMBER 23, 2020

I highlight endogenous social impact because many of my portfolio companies might give money to charity or provide low-cost pricing to nonprofits, but that’s not what I think of as an impact company; they’re tacking on social impact on top of their core business, whatever that is. . . Goldman Sachs bought Clarity for ~$100m. . Who hasn’t?

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60

Both Sides of the Table

MAY 24, 2021

It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales. This “overnight success” was first financed in 2004. This is true in consumer but it’s also true in enterprise software.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

David Teten

MARCH 18, 2021

Investment theses are just hypotheses; the portfolio shows how accurate the hypothesis was. Thirty-four VC firms in OpenVC call themselves “early-stage” Yet, 30% of those don’t actually invest in pre-revenue startups. Investment theses are just hypotheses; the portfolio shows how accurate the hypothesis was.

Technical Review 78

Technical Review Cofounder Venture Capital Deal Flow 78

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Of the Inc. 5000 companies, only 6.5% raised from angels.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

David Teten

AUGUST 21, 2019

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. But should they?

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

VC Adventure

MAY 5, 2022

In markets like this, funds that deploy quickly generate markups on their full portfolio; those that show more patience suffer from an IRR perspective as a larger portion of their fund is yet to be marked up by subsequent financing rounds. Traditionally LPs have viewed this as positive. management fee).

IRR 116

IRR Metrics Valuation LP 116

YoungUpstarts

NOVEMBER 18, 2018

Your team, including a knowledgeable patent attorney, will This not only creates a revenue stream, but also ensures that there is an on-going process of adding additional intellectual property to the original patent, creating a perpetual licensing income stream. and Alarmforce LP, SkyBell Technologies, In August Home Inc.,

Intellectual Property 157

Intellectual Property Forecast LLC Acquisition 157

Both Sides of the Table

MARCH 30, 2016

They either had a portfolio company in market and weren’t getting offers as quickly as expected or they knew a friend in the biz who was recounting this to them in a session VCs strangely call “comparing notes.”. Here are some stats to give you a sense: • Year over year revenue grew 51% in 2015 and we’re forecasting the same again for 2016.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. By the first quarter of 2016, the late-stage financing market had changed materially.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Bryce Dot VC

NOVEMBER 19, 2012

Given how quickly we’re seeing startup bubblettes emerge, we decided to raise a little more cash now to provide for greater time diversity within the portfolio. As a seed investor, we’ve always leaned towards larger rounds in favor of giving our founders at least 18 mo of runway with no revenue.

Seed Stage 61

Seed Stage LP Incubator Venture Capital 61

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 LP perspective. The business of venture capital is relatively young. The money side is flexible.

IRR 48

IRR Venture Capital LP Early Stage 48

This is going to be BIG.

SEPTEMBER 7, 2012

I know, because those people all used to pitch me as an institutional LP back in the day. In the late 90's, it wasn't surprising that companies with no revenue that were funded at 100 million dollar valuations didn't survive. Sure, when those periods hit, they hit bad, but most of the time, they hit the poorly prepared companies worse.

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99