Venture Capital Returns

A VC : Venture Capital and Technology

This post is for everyone who thinks venture capital is an easy business. Here are short term and long term returns for the venture capital business over the past ten years compared to the public equity markets in the US. Venture Capital and Technology

How to Build a Startup & Understanding Venture Capital

Both Sides of the Table

In picking your market you should focus on “deflationary economics” or lowering the price, functionality and margin of your business but targeting ever-increasing market sizes afforded by Internet scale. But you need to understand venture economics.

Trending Sources

17 Venture Capital Blogs You Should Be Reading

Up and Running

Whether or not you’re raising money for your business, getting advice from venture capitalists can be invaluable. Inside the Minds of Top Venture Capitalists: Blogs You Need to Read to Understand How VCs Think. Andrew Parker is a VC with Spark Capital in Boston.

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.

Forecasting in venture capital

The Equity Kicker

One thing that stands out as a little different for me is that the best investors get behind big themes – e.g. the internet, open source software, SaaS, ecommerce, mobile, marketplaces – which feel a bit like the deterministic theories that super forecasters are sceptical of. I made my first mobile internet investment in 2000 in a business that was years ahead of it’s time helping banks to get their services on WAP phones. Good VCs need to be good forecasters.

Mary Meeker's 2012 Internet Trends

A VC : Venture Capital and Technology

I love these "state of the internet" presentations Mary does. 2012 KPCB Internet Trends Year-End Update from Kleiner Perkins Caufield & Byers. mobile Venture Capital and Technology Web/TechMary published this presentation this past week.

The State of Venture Capital and the Internet

Both Sides of the Table

Early today I gave a keynote at the VCJ Venture Alpha conference here in San Francisco. I was asked to speak about the topic of “what is going on in the venture capital world and what is the next big thing after social networking?”. Future of VC Internet – Tough topic, but what the heck? Some of the big ones I left off was Tim Connors of PivotNorth and Aydin Senkut of Felicis Ventures.

Sustainable startup growth and venture capital

The Equity Kicker

On Friday it seemed like everyone in the venture capital industry was again reading about market turmoil, this time the news is that angel investors are pulling back and valuations taking a hit. In his post The end of the big venture formula Danny Crichton put it like this: What’s needed is a sustainable approach to startup growth and venture capital.

Startups With Real Revenue Can Get Venture Capital

Startup Professionals Musings

I just read the Q1 2011 report from CB Insights , which shows venture capital is back. To me, this indicates that venture capitalists (VCs) are looking for business, but not from first-time startups. Back to VCs, Silicon Valley venture capital firms are still the most active.

The State of Cleantech Venture Capital: What Lies Ahead

Secret Formula

In late 2011 I decided to write up an internal analysis I’d done at Venrock about the state of cleantech venture capital and make it available broadly. What’s happening to cleantech venture capital? Philanthropic capital.

U.S. Venture Capital Has Its Biggest Quarter Since Dot-Com Days

allthingsd.com

Venture Capital Has Its Biggest Quarter Since Dot-Com Days. venture capitalists put $8.1 It’s clear that factors like the greater American economy and the bumpy tech IPO market don’t necessarily have a direct and/or timely correlation with venture capital spending.

The Venture Capital Revival

ReadWriteStart

There have been a number of narratives in circulation over the last year or so: the " we're in a tech bubble " (or "we're not in a tech bubble") narrative, the "venture capital is in decline" narrative (or " venture capital is broken ").

Venture Capital in India – The Summit Push

VentureWoods

As the season for year roundups begins, here are my thoughts, originally published in Economic Times … It is now my eight year in succession of claiming a great year for venture capital. At the surface, 2013 was a slower year for venture capital investments than recent past. The first reason is the emergence of key investment themes which could redefine the complexion of technology ventures in India.

Conversion: The Most Important Internet Metric of All (Revisited)

abovethecrowd.com

Over 13 years ago, in March of 2000, I wrote a blog post titled “ The Most Powerful Internet Metric of All. ” The key thesis was this: if an Internet company could obsess about only one metric, it should be conversion.

Quigley Report - Predicting a Venture Capital Revival

VentureWoods

An interesting report predicting that venture capital asset class will make a strong revival over next 10 years. Quigley Report: A Venture Capital Revival is Upon Us.

The Venture Capital Secret: 3 Out of 4 Start-Ups Fail

online.wsj.com

SIGNIFICANCE PROMINENT. --> The Venture Capital Secret: 3 Out of 4 Start-Ups Fail. An entrepreneur with a hot technology and venture-capital funding becomes a billionaire in his 20s. But now there is evidence that venture-backed start-ups fail at far higher numbers than the rate the industry usually cites. About three-quarters of venture-backed firms in the U.S. backed by venture capitalists. INTERNET BUSINESSES. General Internet. -

Venture Capital Access Program launches to aid women and diverse entrepreneurs

David Teten

We are in the midst of two great disruptions to American business: the internet’s ongoing disruption of most traditional industries: finance, healthcare, retail, finance, fashion, etc. VCAP© Addresses the Gap between Venture Capital and Funding for Women and Diverse Entrepreneurs.

New Rules for the New Internet Bubble

Steve Blank

We’re now in the second Internet bubble. After the dot.com bubble collapsed, venture investors spent the next three years doing triage, sorting through the rubble to find companies that weren’t bleeding cash and could actually be turned into businesses. Technology Venture Capital

What's in a (venture capital) website ?

Fred Destin

Late on Friday we launched the new website of Atlas Venture. One of the challenges that all venture capitalists are dealing with is that we are all peddling essentially the same product. The bottom line is we all sound pretty much the same , so what is a venture capitalist to do ?

The Great European Venture Capital Crisis

Fred Destin

The exercise of drawing up target list of investors has been a depressing one, for the European venture landscape is starting to look extremely depleted. We have three clearly dominant firms based out of London, in the form of Accel Partners, Balderton Capital and Index Ventures. European venture capital is out of favor with LP's. The wonderful White Beat Yard / Passion Capital initiative is one such example. Venture Capital *Notable Europe

The Internet Might Kill Us All

Steve Blank

Ben and his partner Marc Andreessen (the founder of Netscape and author of the first commercial web browser on the Internet ) are the definition of Smart Money. I’ve followed them with a few observations about the Internet that may help frame the scope of the debate. While labeled the “dot.com” bubble, valuations went crazy across a wide range of technology sectors including telecommunications, enterprise software and biotech, not just the Internet. The Internet May Kill Us.

The Coming Brick Wall in Venture Capital & Why This is Good for US Innovation

Both Sides of the Table

This is the final part of a 3-part series on the major changes in the structure of the software & the venture capital industries. But … Downsizing Venture Capital. Creative destruction is what drives capitalism and innovation.

The disruption of venture capital

The Equity Kicker

Union Square Ventures partner Albert Wenger wrote a post yesterday about the disruption of venture capital which lists the changes afoot: Information about VCs on the internet. In the mid-1990s VCs began to have websites, but there were no good resources for entrepreneurs to find out about the venture capital process and learn about individual firms or partners.

Running The Table

A VC : Venture Capital and Technology

And like Google is trying with the entire f **g Internet. Apple and the Internet stopped Microsoft. Venture Capital and Technology I hate it when companies try to run the table on a market. Like Microsoft tried with desktop computing. Like Apple tried with mobile computing. Like Facebook tried with social networking. The good news that the market stops them. Google stopped Apple. Twitter stopped Facebook. Who will stop Google?

Right Entrepreneurs In The Right Place Get Funded

Gust

Obviously, a key factor is always the state of the economy and the mood of the venture capital community. On the other hand, venture capital doesn’t get smoothly spread across the geographic and demographic landscape, and the number of active firms has dropped sharply.

What Hasn't Changed: The Internet Keeps Getting Bigger.

500 Hats

Regardless, though I respect Fred greatly, let me state my position for the record – consumer and small business internet opportunities are FAR from “over”, and any such commentary is foolish, narrow-minded, and simply dead wrong (altho, it may indeed be “over” for most large funds attempting to do seed-stage investing at any scale similar to YC or 500). But in the early days, capital is nowhere near as important to the company as domain expertise.

The Great Internet Stock Correction of 1997, or 1999, or …

Feld Thoughts

In the last two weeks there’s been a flurry of articles about the implications of a 25% decline in the public market value of a bunch of Internet stocks. We were in the middle of fundraising for Softbank Venture Capital (which became Mobius Venture Capital.) We probably had about $150m committed and were running around trying to get to $300m for what we had positioned as a dedicated Internet VC fund.

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What Has Changed

A VC : Venture Capital and Technology

it is the single biggest megatrend in the consumer internet space right now. most new consumer internet startups need to build for iOS, Android, and web at the same time. there is a large pool of money in the venture capital asset class that is opportunistic, momentum driven, and thesis agnostic. this pool of capital was "all in" on consumer web/social web in the 2009-2011 time frame. That is a tiny fraction of the venture capital market.

Right Entrepreneurs In The Right Place Get Funded

Startup Professionals Musings

Obviously, a key factor is always the state of the economy and the mood of the venture capital community. On the other hand, venture capital doesn’t get smoothly spread across the geographic and demographic landscape, and the number of active firms has dropped sharply.

My Talk at MIT: Beyond Finance, Considering Business and Social Impact of Blockchains

thebarefootvc

One of the reasons I started investing in the blockchain space 4 years ago was the rush I got learning about the tech at my first bitcoin conference – akin to the chills I got when I first logged into the Internet in 1994, when I was deeply passionate about more equal access to education. There were some debates at the MIT conference on where we were in blockchain development vs the internet (is it 1960’s or 1990’s?).

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Venture capital vs self-funded for high growth technology businesses. This was surprising.

Business of Software Blog

There seems to be a generally held feeling that venture capital is ususally suitable for rapid growth businesses and that founders should consider taking it if they want to add rocket fuel to their business.  It was inspired by an observation that only 14% of the fastest growing 500 companies in the US were venture backed according to Carl Schramm. Carl Schramm talking about US innovation and venture capital. 5, Periscopix , Internet, 5147%, Self funded.

The Role Venture Capital is Playing in Online Schooling (Guest Post)

VC Cafe

Venture capital and other forms of seed funding have been crucial for the development of the best online colleges. A Wall Street Journal piece from April 2012 reports on the impact of $16 million in venture capital awarded to Coursera to increase the scope of the program.

Venture Capital Top Blogger Fred Wilson

DataGrant Venture Capital News

Venture Capital Top Blogger Fred Wilson. New Yorker Fred Wilson has been a Venture Capitalist since 1986. He is the managing partner of New York Venture Capital firms Union Square Ventures and Flatiron Partners. Union Square Ventures invests in Internet services that create large networks. Union Square Ventures is one of the venture capital firms that helped make Twitter happen. About Fred Wilson.

The State of Cleantech Venture Capital, Part 1: The Money

Secret Formula

I’ve heard it said more than once in the past month that venture-backed entrepreneurship clearly isn’t working here, so maybe we should all pack our bags and go home. We can answer this question by using yesterday’s financing data to project tomorrow’s capital requirements.

The Dangerous Seduction of the Lifetime Value (LTV) Formula

abovethecrowd.com

Many consumer Internet business executives are loyalists of the Lifetime Value model, often referred to as the LTV model or formula. advertising Internet Uncategorized Venture Capital Web/Tech LTVLifetime value is the net present value of the profit stream of a customer. This concept, which appears on the surface to be quite benign, is typically used to compare the costs of acquiring [.].

Investors Beware: Today’s $100M+ Late-stage Private Rounds Are Very Different from an IPO

abovethecrowd.com

In a February 6th article in Business Insider , Allyson Shontell discovered that a mere four months after adding $150 million to a total of $330 million in invested capital, the founder and CEO disclosed to its employees that “we have spent $200 million and we have not proven out our business model.”

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On the Road to Recap:

abovethecrowd.com

In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “ The Age of the Unicorns ” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.” All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. Competition also has access to capital.

Why Facebook Clearly Belongs in the 10X Revenue Club

abovethecrowd.com

Brief disclosure, Benchmark Capital has a minority position in Facebook as a result of the acquisition of FriendFeed, a company that was incubated in our offices. Facebook Internet IPO Uncategorized Venture Capital Web/TechAttached are my thoughts on the Facebook S-1 along with some quick stabs at valuation. I thought it would be useful to look at Facebook using the scorecard from our [.].

Uber’s New BHAG: UberPool

abovethecrowd.com

This allows the company to “forward invest” capital to help these markets achieve lower consumer prices even faster. As with UberX price cuts, the company can use its substantial capital resources to forward invest in UberPool, increasing the likelihood of success.

Lockups and Insider Selling

A VC : Venture Capital and Technology

There is a lot of sturm und drang out there in the worlds of social media, finacial media, and just plain media about all the lockups coming off and all the insider selling going on in some big internet stocks. When a venture backed company goes public and is worth billions (or even hundreds of millions), the investors who provided the early capital to that company are going to be sitting on a lot of stock. It is an investors job to return capital.

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