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YC follows a well trodden path for investment firms: drifts later stage

The Equity Kicker

In the words of an alum from the 2006 cohort: Companies are joining YC at a much later stage. If you read this Techrunch post profiling 50 of the current YC companies you will notice that many of them are up and running with customers and revenues.

Later-stage rounds and “setting the bar too high”

Chris Dixon

I recently had a number of conversations with CEOs of later-stage startups (generating significant revenue) that went something like this. They want to raise more money, and VCs are offering them money at a high valuation.

First Half of 2011 Showed Boost in Later Stage VC Deals in Israel

VC Cafe

Mid stage companies accounted for the highest rate of investments in Q2 2011, attracting 44% of all capital invested and later stage followed, with 27%. Mid stage companies led capital raising with $249 million or 44 percent of the total capital raised.

Why I Invested in Gogii (textPlus) – My First Ever Later Stage Deal

Both Sides of the Table

More on that later. This is a post I’ve been dying to write for 18 months. I invested in LA-based Gogii , one of the fastest growing, most exciting mobile social networking companies you’ve never heard of and maker of a product called textPlus. I know this because you’re not a young teenager. And if you are – what on earth are you reading such a boring blog as this?!? I only recently invested and I only got here through persistence. See, I originally lost this deal.

Startup Blog: Decisions, Decisions, Decisions ? Second Guessing

Taffy Williams

Sunday, May 8, 2011 Decisions, Decisions, Decisions – Second Guessing It does not matter whether you are in the early stages, later stages, or already a BigCo. Startup Blog Steps to consider to start and grow a company. Basics are provided to help entrepreneurs.

Savara Pharmaceuticals Buys Serendex Pharmaceuticals

SiliconHills

The addition of Serendex adds new drugs to its portofolio including Serendex’s flagship product, Molgradex, an inhaled drug in later stage clinical trials in Europe and Japan to treat autoimmune pulmonary alveolar proteinosis. Savara Pharmaceuticals, which creates drugs focused on rare respiratory diseases, announced it has acquired the assets of Serendex Pharmaceuticals.

Japan 27

Get Ready For Q115 Fundraising Insanity

Feld Thoughts

The number of large, “later stage” financings are remarkable – both in size and velocity. But they are often extremely frustrating to strong, mid and later stage companies growing 25%+ year over year. We are syndication agnostic and are happy to continue to finance strong, later stage companies in our portfolio with or without new co-investors.

How Can This Be A Billion Dollar Company?

Feld Thoughts

I wish he had called it “This Unicorn Thing Is B t For Early Stage Investing” but I think he’s a little more restrained than I am. My original title for this post was “How Can This Be A Billion Dollar Company and other b t VCs ask early stage companies.”

Chegg is in the process of pivoting—seemingly long after achieving product-market fit in its core business. What are the challenges of managing a later-stage pivot??

Launching Tech Ventures

by Jesse Garcia LATER-STAGE PIVOTING = PRE-EMPTIVE TURNAROUND MANAGEMENT? The challenges of a later-stage pivot are BIGGER than those of an early-stage pivot. Chegg, the online textbook renting platform, is currently undergoing a major late-stage pivot away from its core business and into an expanded market opportunity. Length of the Runway Like in any change situation, the amount of time available to execute a late-stage pivot is very important.

Foundry Group Next

Feld Thoughts

During these discussions, we reflected on the incredible collection of early stage VC firms we’ve invested in personally over the years. We were clear at that point that we wanted to continue to make early stage investments through a new Foundry Group fund, which we subsequently raised in the middle of 2015 and started investing at the end of the year. At the same time we discussed our later stage investment strategy.

Our 2016 Foundry Group Fund and A Little History

Feld Thoughts

We subsequently raised a $225 million fund in 2010 , another one in 2013 , and a late stage fund in 2013. Except for our late stage fund, each of our funds has 30 investments (+/- 2) in it. Our late stage fund gave us flexibility to invest more money in our later stage companies.

Venture Capital Returns

A VC : Venture Capital and Technology

The NASDAQ Composite beats later and expansion stage funds and all the public indexes beat early and multi-stage funds. The performance of early stage funds is particularly disappointing. You would expect early stage funds to underperform in the early years.

How to Avoid a Cluttered Board Room

View from Seed

Here at NextView, we are strong proponents of creating a board at the seed stage. At the seed stage, we typically have three-person boards with two founders and one VC — though as companies grow at later stages, five-person boards and ultimately six- or seven-person boards become more common. I think having two or at most three VC board members is probably where this should cap out, even for later stage startups.

Venture Deals: Chapter 11: Issues at Different Financing Stages

Ask The VC

As we enter the home stretch of the book, we spend some time talking about financings at different stages of the life of a company. This is especially true when you factor in the different stages that your company will evolve through over its lifetime. Each financing stage—seed, early, mid, and later stage—has different key issues to focus on.

[Checklist for Entrepreneurs] Critical Tasks to Complete After Raising Seed Capital

View from Seed

Raising venture capital at any stage of company growth requires tremendous effort from entrepreneurs. Note that this list was created specifically with seed-stage startups in mind.

The Opportunity / Growth Fund Trend

Feld Thoughts

With yesterday’s announcement that early-stage VC Greycroft has raised a $200 million growth fund , this type of fund has officially become a trend. ” Prior to this, plenty of VC firms invested across the early stage to late stage spectrum from the same fund (e.g. Others had separate early stage funds and late stage funds, often with separate teams and economics (e.g. Foundry Group fund Greycroft growth late-stage opportunity select USV

Unicorpse

Feld Thoughts

“Indeed, contrary to Kupor’s argument at the Rosewood, it is this later-stage investing—with its shortage of regulation, tremendous envy, and Schadenfreude—that worries many bubble-watchers. “We The current usage of the word unicorn makes me tired.

Kindred Spirits – Our Investment In Founder Collective

Feld Thoughts

From those founders, we are aware that FC takes their mission “to be the most aligned fund to founders at the seed stage” very seriously. We know many firms that build portfolios with great logos by buying into companies at later stages and higher valuations.

Reserves

A VC : Venture Capital and Technology

They all are important at various stages of development. We know that early stage companies require a fair amount of capital to grow into profitable sustainable businesses and we work hard to make sure that we have the staying power that our portfolio companies require from us. We also use these Opportunity Funds to occasionally participate in later stage rounds of companies that we did not invest in at the early stage.

The VC Market – 2015 and 2016

Rob Go

From the seed stage perspective, what we’ve seen this year is that the definition of a seed round has broadened considerably. There is greater variability in the size, valuation, and stage of companies that raise seed rounds, and often, companies raise 2 or 3 seed rounds before a series A. This is happening because many series A investors are not really investing in early stage companies any more. I don’t see how this leads to anything catastrophic for the early stage market.

What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

I recently survey more than 150 VC friends from all stages and geographies what they thought about the market by asking “Which of the following statements best describes your mood heading into 2016?”

Why we expanded our startup to South Korea

The Next Web

Additionally, if the expansion goes well, you’ll have also demonstrated the adaptability and versatility of your product on a world stage. So when your later stage startup is ready to expand, where should you go?

European seed fund explosion – what does it mean?

The Equity Kicker

As you can see from the graphs below the number of seed funds is growing very fast whilst the number of later stage funds is flat. BrightSun have just published research on the number of seed funds in Europe.

Outsource things you don’t care about

Chris Dixon

At an early-stage technology company this means you do in house: product design, software and/or hardware development, PR, recruiting, and costumer relations/community management. You probably shouldn’t hire an investment banker during an acquisition unless your company is later stage. A fundamental principle of business is that you do things in house that you think can give you a competitive advantage and outsource things that you don’t.

PR 49

What Do Industry Insiders Think Will Happen in VC in 2016?

Both Sides of the Table

Frankly, it’s really hard to write checks at later-stage valuations when you know you’ll have to exit into the public markets or sell to a public-market company one day and the stocks are declining precipitously. “This is the year the tortoise may gain on the hare.”

LP 94

Entrepreneurs, Your Funding Strategy will Change When You Start to Engage with Potential Investors

Robert Ochtel

This was a time when venture capitalists and angel investors alike were willing to invest in pre-revenue, early stage companies with a great concept and a first class team. In fact, it was considered later stage investing and investment groups or individual that invested in these types of companies were not “real” venture or angel investors. com) early-stage company investing fever, and invested in anything and everything related to the Internet.

Why 2017 Should be a Great Year to Raise Venture Capital

Both Sides of the Table

VCs don’t expect any serious corrections to valuations in 2017 and they seem to be taking financial discipline in later-stage companies more seriously valuing unit economics over “growth at any cost.”

Ten million users is the new one million users

Chris Dixon

Some observations: - Thousands of early-stage consumer web/mobile companies were started and funded in last 24 months. A few breakout early-stage consumer hits (Instagram, Pinterest) have reached tens of millions of users in record time. Hence, many early-stage consumer startups are switching to transactional models. - VCs are increasingly focusing on B2B for early-stage investments.

Think Angel Investing = Seed Investing? You're Missing Out.

Inc Startups

How to improve your venture portfolio with later stage companies

A Great Discussion with @skupor @davemcclure @msuster on Changes in the VC Industry

Both Sides of the Table

We both agree that the later-stage valuations are being driven up to a point that feels irrationally priced [he uses b-round SaaS valuations as an example and I am willing to be even more broad based]. Video 1 is here : Late stage valuations are in a mini bubble.

Q316 State of Venture Capital Update With Cooley

Feld Thoughts

It continues to be highly dependent on company, stage, and location. At the early stages, raising the first $2m tends to be straightforward in most geographies that have meaningful startup communities. The stage in between – what used to be called a Series B or Series C – continues to be extremely hard to raise unless you are clearly on a very rapid growth trajectory. Since we are early stage investors, it simply doesn’t matter if we are a short term bull or bear.

A Five-Minute Tutorial On How To Value Your Startup

Startup Professionals Musings

Investors know that valuations at startup early stages are negotiable, but they do expect that smart entrepreneurs understand the top three elements of a startup valuation would include the following. Future revenue projections are not relevant at the pre-revenue stage.

Can’t attract VC money? Buy a business with private equity

The Next Web

Venture capital firms are typically growth-oriented, early-stage investors looking for these proof-of-concept points before cutting a check. Venture capital investors are looking for different things than private equity investors.

Accelerate Your Startup With Help From An Incubator

Startup Professionals Musings

Accelerators generally accept startups at a slightly later stage, and attempt to compress the timeline to commercialization into a few months, instead of a year or more. Peer-to-peer networking with other startups and founders in the same stage.

7 Keys To Signing Business Advisors That Add Value

Startup Professionals Musings

If you have more, they better be major investors or partners who will likely be part of your formal Board of Directors at a later stage.

Seed Investing

aweissman.com

It is about the fact that while venture funding statistics show larger funds and more later stage investing, there are still a wealth of early ventures being formed, and getting funded. skip to main | skip to sidebar. aweissman.com. Maximizing the serendipity around you. Jul 24, 2007. Seed Investing. I wrote a piece for the new Silicon Alley Insider site about seed investing in New York.

Some Thoughts On Seed Investing

A VC : Venture Capital and Technology

But it is a bit of a return to form for USV as half of the initial investments in our first fund (USV 2004) were made at the seed stage. In our core early stage funds (as opposed to our Opportunity Funds), we make initial investments at the seed, Series A, and Series B stages. In an ideal world for USV, there would be a normal distribution of these entry points with the highest percentage in the Series A stage.

8 Secrets To Pushing Your Startup Ahead Of The Crowd

Startup Professionals Musings

You don’t have to be a heavily funded later stage startup to get access to “big data,” customer analytics, and metrics dashboards. Later cleanup can double your costs and risks.

Top 100 venture VC investments each year average $100-150m gain

The Equity Kicker

The other way of creating $100-150m is to invest more money a bit later on when the required multiple will be smaller, but the exit value will be higher. The dangerous thing for early stage investors is dilution by later stage investors.

What Are Pre-Seed Rounds and Why Do They Exist?

View from Seed

It’s become increasingly common for startups to raise several seed rounds, and this has led to a bifurcation in the seed stage between what are known as “pre-seed” (or “genesis”) and institutional seed rounds. The proliferation of seed-stage investors.