VC Adventure

OCTOBER 5, 2020

Ian Hathaway, who recently co-authored the second edition of Startup Communities with my partner, Brad, sent me the chart below which highlights how that translates to returns in venture capital as an asset class. Taking the most aggressive end of these numbers would still only have this one company returning 70% of the fund’s capital.

IRR 174

IRR Venture Capital Community Partner 174

David Teten

SEPTEMBER 16, 2014

Based on his track record, by 2008 he was able to found ff Venture Capital , an institutional angel investment firm (where I am a Partner). Average Angel Returns Over Time. Time Period. Total Investments. Exited Investments. 1994 – present. Band of Angels Website FAQ. Sohl: “The Angel Investor Market in 2011: The Recovery Continues”.

Angel Investor 114

Angel Investor Technical Review Venture Capital Pre-Money Valuation 114

The Equity Kicker

MAY 27, 2015

Fund managers are assessed, in part, on their ratio of expenses to assets under management. This applies to all classes of fund managers, including pension fund managers, IFAs, private equity fund managers, and venture capital fund managers. Therefore, the lower the expense levels the better.

Cost 60

Cost IRR Private Equity Salary 60

David Teten

OCTOBER 15, 2013

ff Venture Capital has consistently generated a gross IRR on invested capital in excess of 30%, in a world where the average ten-year returns for venture capital firms are in the single digits. Angel investing Contributed Articles ff Venture Capital Fund Management Venture Capital' Now we can.

Venture Capital 114

Venture Capital Accredited Investor IRR Later Stage 114

Both Sides of the Table

MAY 25, 2013

The better way to think about VC returns is, do the firms consistently beat alternative asset clases on an IRR basis to adjust for the increased risk and lack of liquidity? There have been a lot of management shuffles at Twitter. The best VCs know the buyers and can help guide and manage the process. It is changing.

LP 374

LP Later Stage IRR Term Sheet 374

David Teten

JULY 10, 2017

Why couldn’t a large company offer 1:1 or greater matching of the angel investing of their senior management? Angel investing is an exceptionally high-return asset class; I have collected twelve studies on angel returns in the US and UK, which show median internal rate of return (IRR) between 18 and 38 percent.

Employee 60

Employee Balance Sheet Syndicate Syndication 60

Steve Blank

AUGUST 5, 2014

I loved what he was working on (thanks to perspective in data management from my large company experience here—that prepared mind thing). Don’t be afraid to take a step down (Oracle was a $1 Million business, I had been marketing manager for a $100 Million business). I was on the way to my lifetime IRR of 90%.

Venture Capital 333

Venture Capital Silicon Valley Chicago Cofounder 333

David Teten

AUGUST 21, 2019

The RBI investor is motivated to help the company grow because that speeds up the pace of revenue payback, and therefore IRR. Requires regular monthly payments and careful cash management. That said, Jim Toth, Managing Partner, Riverside Acceleration Capital, observes, “Actually, everyone is aligned towards growth.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

VC Cafe

JULY 2, 2012

Lots of returns are being made these days, but the latest CalPers report shows dissapointing returns by Israeli VC firms , with an IRR of 3.5%-3.8% Britain’s Apax Partners in cooperation with Baltimore, Maryland’s JMI Equity has purchased the US-Israeli software company Paradigm for $1 billion. FACEBOOK BUYS FACE.COM FOR $100M.

Latvia 109

Latvia Lithuania Russia 109

David Teten

MARCH 2, 2013

See the Techcrunch posts by my Partner John Frankel and Professor Robert Wiltbank , my recent post on the quality of angel returns data , as well as reports from the Silicon Valley Bank and Kauffman Foundation. Partners at smaller funds, by contrast, have to hustle before they can cover their mortgage.

LP 114

LP Securities and Exchange Commission Silicon Valley Venture Capital 114

Agile VC

NOVEMBER 13, 2012

Some of the firm’s partners may move on to new jobs during this phase but at least some are usually still around. For those who aren’t familiar, Mobius was a VC fund with offices in Silicon Valley and Boulder CO and at it’s peak Mobius had $2B+ under management. typically, which in most cases would to >20% IRR.

LP 154

LP Portfolio Venture Capital IRR 154

Professor VC

MARCH 10, 2009

His latest venture, Bharosa, was sold to Oracle for a 6X multiple in 3 years to his angel investors, a sweet close to triple digit IRR. I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases.

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Software Review 28

K9 Ventures

MAY 14, 2011

They are still individual investors, they invest on a full-time basis as professionals, but they have funds with Limited Partners. The limited partners may themselves run the gamut from individuals, family offices, venture capital funds to institutional LPs. They have 4-10 partners who are investing on their behalf. Super Angel.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

K9 Ventures

NOVEMBER 30, 2008

The General Partners (GPs) are the operating guys. The money that the GPs and other employees of the firm invest comes from Limited Partners (LPs) — typically the big university endowments, retirement funds, charitable organizations, family offices and high net-worth individuals. of the size of the fund.

IRR 48

IRR Venture Capital LP Early Stage 48

Feld Thoughts

AUGUST 1, 2018

The $750 million fund combines all of our prior fund strategies – our early stage, early growth, and partner fund investments – into a single fund. When we started Foundry Group, we had four equal partners. We now have seven equal partners. The seven partners all work directly with the companies and partner funds.

Syndicate 17

Syndicate Syndication IRR Canada 17

abovethecrowd.com

APRIL 20, 2016

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. These mutual funds “mark-to-market” every day, and fund managers are compensated periodically on this performance.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Ben's Blog

AUGUST 17, 2020

If an investor could have identified Salesforce’s ability to maintain such prolonged growth upfront, invested in its 2004 IPO, and then held on through to today, they could have made ~70x returns: equivalent to ~30% IRRs over a 16 year period. Not too shabby! But would that be a good deal for the shareholders entering at this stage?

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

Professor VC

JANUARY 17, 2008

A partner from the law firm (sponsor, covers the drinks and food) tosses out some softball questions to the panelists, the audience chimes in with Q&A and finally, culminates with the meet and greet where the panelists are flooded with business cards and pitches on the next great thing, which is often very similar to the last great thing.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

This is going to be BIG.

MAY 16, 2016

First, the author says the dataset is " a dataset compiled by Bloomberg, covering 3,300 individual funds and 1,600 general partners ". Sounds like a huge amount, but only later does he say that only " 476 funds which had known Net IRR values, the overwhelming majority of which were from vintage 2002, or more recently."

Venture Capital 66

Venture Capital IRR LP .Net 66