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).

It’s Morning in Venture Capital

Both Sides of the Table

Many observers of the venture capital industry have questioned whether its best days are behind it. They are, in fact, great news for traditional venture capitalists. The most successful of these businesses will still need venture capital to scale their businesses.

Trending Sources

On historical returns and venture capital flavours

Fred Destin

Story of of the last few years in Venture Fund Land : large institutional investors concentrate money with fewer managers and flagship brands AND / OR find emerging managers. We've found capital constraints to be a great friend.

The Experience of Being a Limited Partner in Venture Capital

This is going to be BIG.

That's because, for the most part, fund investors fall into two categories: institutions and individuals. If you're an institution, you basically care about returns and that's it. You run X amount of capital and Y percentage of that is allocated to venture capital. You attend annual meetings and hop on investor calls as a means of oversight and to help you decide whether or not to invest in a future fund. Partnership investing is boring.

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. New York Policy Venture Capital

Intuit to Acquire Demandforce for $424MM

abovethecrowd.com

As with Instagram, Benchmark Capital is the largest institutional investor in Demandforce. advertising Internet Uncategorized Venture Capital Web/Tech Demandforce LocalThis morning, Intuit announced its agreement to acquire one of Benchmark’s portfolio companies, Demandforce, for $424mm.

Institutional Investor Just Published our Research Study on Disruption of Investing

David Teten

We’re happy to report that Institutional Investor just published our summary of our research study in their April issue: “ Asset Managers, Prepare to Have Your Business Disrupted ” (about 2,000 words).

Israeli Venture Capital Fund Raising 2010

Recent Buzzes - VC Experts, Inc.

Additional details about venture capital fund raising will be available in the IVC 2011 Yearbook , due for release in April. Despite improvement in macro economical factors in 2010, Israeli VC funds were not able to attract new capital during the year.

Some Thoughts On Public and Private Markets

A VC : Venture Capital and Technology

Back in the days of the IPOs of Apple and Intel, great tech companies would go public at low valuations, there were dozens of small market makers who would do research on the stocks, and most of the investors in these deals were individuals. Now we have markets that are largely closed to the individual investor. VC investing is largely instititional and limited to "qualified investors" (ie rich people). stocks Venture Capital and Technology

IPO 59

Standart termsheets

The Equity Kicker

Normal termsheets, by contrast, take a position that is favourable to the investor with the expectation that they will be negotiated down. We couldn’t use them as is because they don’t have enough detail on key items, like investor protections and founder vesting.

What investors look for in a startup

The Equity Kicker

Early stage investors like Forward Partners look for a minimum of a great entrepreneur and a great idea. As businesses develop investors start to think about execution as well as the idea and the team. Venture Capital

Are You the Fool at The Table?

Steve Blank

Smart Money are prescient angel investors and Venture Capitalists who started investing in social networks, consumer and mobile applications and the cloud 3, 4 or 5 years ago. Filed under: Venture Capital. Venture Capital

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Building your C Level Team

StartupCFO

But when dealing with institutional investors its important to be open and self aware enough to judge whether you truly have a C level team in their eyes. I’ve been part of many startups now as either an investor or management team member. Other times, investor driven.

Investing in Venture Capital - Limited Partner or Fund of Funds? - Part 1

Recent Buzzes - VC Experts, Inc.

By Igor Sill, Managing Director of Geneva Venture Management LLC. Investor confidence in Venture Capital is at an all time high. Billion represents a significant liquidity window for Venture Capitalists and their Limited Partner investors.

Investor Nomenclature and the Venture Spiral

K9 Ventures

In my view the terminology being used for early stage investors by the press and the media is not as clear as it should be. These are “investors” who are investing in you, i.e. not on the basis of your idea or the merits of your investment, but on the basis of a personal relationship with you.

The SEC and Private Markets

A VC : Venture Capital and Technology

The WSJ says that the SEC is reviewing the rules under which privately held companies raise capital and are subject to securities regulation. They quote the SEC Chair Mary Schapiro as saying: The staff is taking a fresh look at our rules to develop ideas for the Commission about ways to reduce the regulatory burdens on small business capital formation. Both of these rules directly or indirectly keep small investors, ie the general public, from investing in privately held companies.

SEC 37

Bitesize Monday: Israeli Startup Headlines

VC Cafe

Venture capital Rounds. The company was founded in 2009 by Uzi Shmilovici raised the funding from OCA Ventures , I2A Fund and angel investors. million in its third financing round led by Pitango Venture Capital. Israeli venture capital news.

Where are the Deals? How VCs Identify the Next Generation of Startups

David Teten

You’ve probably read dozens of articles about how to raise capital from venture capitalists. But in practice, these phenomena create a tremendous volume of startups, which investors then have to filter. Most investors rely on their network of colleagues and service providers to source investments. We drew on our work with leading institutional investors and in-depth interviews with over 150 funds. Acquirer/ Investor. ff Venture Capital.

Peter Thiel Launches New Venture Capital Firm

Inc Startups

Prominent billionaire investor Peter Thiel has opened a new venture capital firm --this time focusing on growing technology companies. The Silicon Valley billionaire has started a $402 million fund to invest in growth-stage start-ups.

VC Governance FAQ: (7) How should institutional investors contact VC funds?

Pascal's View

This is the seventh in our series of ten frequently asked questions from investors in venture capital partnerships. Susan Mangiero , CEO of Investment Governance’s Fiduciary X , asked me the following: Question; How should institutional investors contact VC funds?

The role of a Seed Stage VC

StartupCFO

Others, like Mantella Venture Partners make a small number of investments but get heavily involved in each of them (not sure if this is still true, but Mantella used to have all its portfolio companies in its office. Matt Golden of Golden Venture Partners is 100% mobile-focused. That gives him an edge over more generalized investors. If you raise angel capital you maintain optionality. A clear vision for how this can become a meaningful venture-scale company.

Grubhub and Seamless: Effecting The Elusive Private-Private Merger

abovethecrowd.com

As Benchmark is a large institutional investor in Grubhub, we were actively involved in the merger process, and we are quite excited about the potential of the two companies coming together. Private companies typically have capitalization structures that are very complex.

2012 Recap and Final Close at $19M

Version One Ventures

Version One Ventures made eleven investments, including three angel investments that rolled over into the fund. Announcing Version One’s final close In addition to wrapping up 2012, I’m happy to announce the final close of the Version One Ventures fund with $19 million in committed capital. Our original target was $10M, so I’m extremely grateful at the confidence our investors placed in the fund.

Stars Aligned to Foretell Future of Indian Private Equity & Venture Capital

VentureWoods

Dear Colleague, In 2004, the buzz around one mega exit - of Private Equity investor Warburg Pincus from Bharti Airtel - got institutional investors across the world excited about the Indian Private Equity opportunity. Naturally, there was a boom in PE fund offerings from India- typically focused on minority growth capital type investments - to cater to this rising appetite. That Angel Investors/Seed Funds will provide follow on funding to their promising hatchlings.

Stars Aligned to Foretell Future of Indian Private Equity & Venture Capital

VentureWoods

Dear Colleague, In 2004, the buzz around one mega exit – of Private Equity investor Warburg Pincus from Bharti Airtel – got institutional investors across the world excited about the Indian Private Equity opportunity. Naturally, there was a boom in PE fund offerings from India- typically focused on minority growth capital type investments – to cater to this rising appetite. And a great feeder for the angel investors and seed funds.

Startups and VCs Should Avoid “Pier” Funding

Both Sides of the Table

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. VC’s money comes from mostly institutional investors called LPs (limited partners).

Ionic Security Raises $9.4m from Kleiner Perkins, Tech Operators, ff Venture Capital

David Teten

I met Adam Ghetti , Founder/CTO, at the first Flashpoint Demo Day in New York in early 2012 at Union Square Ventures. ff VC became the only and first institutional investor and I joined the company’s board in May. Atlanta ff Venture Capital Ionic Security I couldn’t be more excited to share that one of our portfolio companies, Ionic Security (formerly Social Fortress), has raised $9.4

Where Does VC Money Actually Come From? [Flowchart]

View from Seed

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).

LP 155

The Changing Structure of the VC Industry

Both Sides of the Table

There has been much discussion in the past few years of the changing structure of the venture capital industry. The rise of alternative sources of capital (crowd funding and the like). The overall trends in our industry have breathed a new life into the venture capital industry.

Update on our study on deal sourcing

David Teten

It’s been very exciting to see such a strong response to our recent research study on “Best Practices in Private Equity and Venture Capital Deal Origination”, published in the Winter 2010 Journal of Private Equity. My coauthor Chris Farmer of General Catalyst provided critical insight, particularly on the venture capital industry. 1/3/11: Global Corporate Venturing , Chasing the rabbit: deal origination best practice.

Early Funding Mistakes can be fatal

StartupCFO

As seed investors, we routinely work with 1st time founders and by default are working with young companies. As an investor this makes me question the founder’s aspirations. Part of our assessment of entrepreneurs is their ability to network and meet the right investors. The people in the know from investors, entrepreneurs, lawyers, etc tend to post about these topics often and also make themselves very accessible. Angels Raising Capital Venture Capital

Reinventing Life Science Startups–Therapeutics and Diagnostics

Steve Blank

But what if we could increase productivity and stave the capital flight by helping Life Sciences startups build their companies more efficiently? At the same time, Venture Capital, which had viewed therapeutics, diagnostics and medical devices as hot places to invest, is fleeing the field.

Venture Debt 101

Up and Running

There are a wide range of options for finance, but one of the more common choices is venture debt. Venture debt provides a very cost-effective way to receive capital from a big financial institution if you have liquidity or existing financial backing from a well-known investor.

Seek Support Organizations Based On Startup Stage

Startup Professionals Musings

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. The alternative is to work with an innovation institute to evaluate your technology, or hire a consultant.

Standard termsheets

The Equity Kicker

Normal termsheets, by contrast, take a position that is favourable to the investor with the expectation that they will be negotiated down. We couldn’t use them as is because they don’t have enough detail on key items, like investor protections and founder vesting.

The case for European venture

The Equity Kicker

I was chatting with a friend last night about the lack of institutional investor (LP) interest in European venture capital as an asset class. Unfortunately they show that historically European venture hasn’t made money. Startup general interest Venture Capital

Why You Shouldn't Raise VC Money

Inc Startups

Venture capital may seem like a savvy choice for financing, but it''s probably wrong for you. It seems like nearly every entrepreneur is on a crusade to raise venture capital. Chances are, though, you shouldn''t raise venture capital money.

How Investors Are Increasing Their Returns Through Collaboration and Technology

David Teten

17, on “How Investors Are Increasing Their Returns Through Collaboration and Technology”. Howard Lindzon is Co-Founder and CEO of StockTwits, a social network for traders and investors to share real-time ideas and information. Events Market Research NextNY Venture Capital

The Biggest Threats to My Business

Rob Go

When we started NextView, there were relatively few seed focused venture capital funds in the country, even fewer on the east coast, and almost none in the Boston area. Unlike large funds with hundreds of missions of dollars in each fund, it doesn’t take a huge amount of capital to getting going as a seed investor, so the barriers to entry are not as high. Non-institutional Leads. The institutions walked, but the round got done.

Why Big IPOs Mean More Money for Your Startup

Inc Startups

Venture capital returns are finally starting to outpace seemingly humdrum indexes like the Dow Jones and the S&P 500. Good news for venture capitalists is good news for you. Why should you care how well venture funds do? Venture Capital Index was 7.7