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What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

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%.

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How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

Sebastian Soler recently launched Knowledge.vc , which uses software and machine learning to enhance deal sourcing and diligence for VC firms. Jaime Hildreth, Managing Director of GP and LP Strategies at Ipreo , informed us that 97% of Ipreo’s GP clients report that data requests from LP’s have increased over the past two years.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

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. Fincura specializes in serving lenders.

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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. 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. I think some will do this.

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How VC’s Source

Rob Go

” Surprisingly, this isn’t just an LP kind of question, I actually get this a lot from founders or even just friends who are not directly involved in the startup community. In particular, you can think of it like the marketing function of a company selling business facing software.

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

According to a recent interview with Founding Partner Andrew Oved, Reformation invests in SaaS (vertical and application software) and consumer product businesses that have achieved $1M-$5M in annualized revenue, while operating capital efficiently. The fund’s network of mentors are all invested LPs, ensuring they have “skin in the game.”

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The Pre-Seed FAQ

K9 Ventures

The first time I used the words “pre-seed” (yes, the initial use was in all lower-case, but then became upper-case over time) was on June 27, 2013, at the K9 Ventures LP Meeting. When I first began in this industry, people would claim that it’s cheap to start a software company. It is no longer cheap to start a software company.