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. Early stage investing is hard.

Q316 State of Venture Capital Update With Cooley

Feld Thoughts

This quarter they interviewed me as part of it on Quarterly VC Update: Brad Feld on the State of Venture Capital Investing. 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. Most importantly from my frame of reference, the amount of activity at the early and seed stage seems to be extremely robust.

Trending Sources

The Rise of Chinese Venture Capital – (Part 3 of 5)

Steve Blank

This post is about the rise of Chinese venture capital and how it helped build the countries entrepreneurial ecosystem. The Rise of Chinese Venture Capital. SBIR and STTR programs, the Torch Program’s funding for new ventures was limited to seed funding the front end.

Why 2017 Should be a Great Year to Raise Venture Capital

Both Sides of the Table

Recently Upfront Ventures published its outlook for the technology startup world and venture capital overall titled it “ WTF Happened to Winter ?” venture-capital startup

5 Ways Venture Capital Is Shaking Up The Tech Startup Landscape In Asia


There is a thin line between success and failure for startups, and that is usually determined by capital. The more capital a startup has, the easier it is to get off the ground and ramp up growth. KPMG’s Venture Pulse Q3 2017 reported that the Asian market has raised $12.3

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Understanding Changes in the Software & Venture Capital Industries

Both Sides of the Table

In this three-part series I will explore the ways that the Venture Capital industry has changed over the past 5 years that I would argue are a direct result of changes in the software industry, not the other way around.

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

VC Cafe

IVC Online and KMPG have released their summary of venture capital raising for Q2 2011, in Israel. 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%.

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

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. Some have done earlier-stage deals and done well. Or at least venture-style returns.

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 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. With more competition in early-stage many VCs are investing smaller amounts at earlier stages. I call this “stage drift.&#.


Feld Thoughts

From section #6 in Aileen’s post: “Given how much capital our private companies have raised in the past few years, most likely have cash to fund 2-4+ more years of runway. Venture capitalist Marc Andreessen warned in a tweetstorm that startups with high burn rates would “vaporize.”

Fund Raising is a Means Not an End

Steve Blank

If you don’t have scale as a goal then you shouldn’t be raising money from angel or venture investors, you should be getting a commercial or government small business loan.). • Search. And at this early stage you’ll be giving up a larger percentage of your firm to investors.

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Does VC Fund Differentiation Matter?

Feld Thoughts

I know what they are investing in (stage, types of companies) and I know what they do (seed, one or two checks, no board seat but available to the founders for anything at any time, not concerned about ball control on the deal), but this is just the surface strategy.

Young Startups Are Getting the Short End of the Venture Capital Stick

Inc Startups

Becoming more risk-averse, angels and VCs are focusing on companies that have already moved past the early stages of development. Venture capitalists are spending their money on more established companies rather than young startups , according to data from the first quarter of this year. Later-stage investments were up 17 percent from the year-earlier period, the San Jose Mercury News reported.

Angel Investors, Venture Capital, Which Should You Chose?

Growthink Blog

And such was the case when I read the latest statistics from the National Venture Capital Association (NVCA). The seemingly good news from the NVCA was that the amount of venture capital funding grew 22% from 2010 to 2011.

Announcing K9 Ventures III, L.P. – A $42M technology-focused Pre-Seed fund

K9 Ventures

So with that… I’m pleased to announce the formation and closing of K9 Ventures III, L.P., K9’s last fund, K9 Ventures II, L.P., The investing strategy for K9 stands in stark contrast to most “early-stage” (incubators, accelerators, pre-seed and seed stage) investing.

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Why Uber is The Revenge of the Founders

Steve Blank

In this business environment, hiring a new CEO who had experience growing a company around a single technical innovation was a rational decision for venture investors. Since the initial venture investors had cashed out by selling their stock over the first few years, they had no long-term interest in this outcome. Private companies with market capitalization over a billion dollars – called Unicorns – were unheard of in the first decade of the 21st century.

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The Next Bubble – Don’t Get Fooled Again

Steve Blank

Today, the signs of the new bubble are the Linked-In initial public offering (IPO), Facebook’s stratospheric valuation and the rapid rise of early-stage startup valuation. Filed under: Venture Capital. Venture Capital

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.

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

Secret Formula

tl;dr: Plenty of late-stage financing will be available for cleantech start-ups over the next few years, but seed/Series A money is another matter. This spooked investors of all types, venture capitalists included, and cleantech start-up investment dropped by a third in 2009.

Early-stage Regional Venture Funds–part 2 of 3 of Bigger in Bend

Steve Blank

Part 2: Early-stage Regional Venture Funds. as a distribution channel have vastly reduced the amount of capital a startup needs at the early stage when the risk is greatest. What’s Missing Is Early Stage Capital. Regions are missing early-stage capital.

How Smart Entrepreneurs Select VC / Angel Investors

Startup Professionals Musings

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. The amounts from Angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range.


K9 Ventures

I define #PeakVC as the point in time when the maximum amount of $$s are entering the Venture Capital industry. That is because the venture capital industry operates in cycles. When the perception of returns in the venture capital industry goes up (for examples when new paper unicorns are being minted every other day) then everyone and their mother feels like they should be investing in venture capital.

Staying Independent

A VC : Venture Capital and Technology

But there are plenty of entrepreneurs who have built interesting businesses using outside capital - angel, seed, VC, or some other form - and they have a portion of their cap table that is seeking a return on their capital on some reasonable timetable. The venture capital industry could potentially adopt some of these practices while leaving the entrepreneur and their management team intact and in control. Venture Capital and Technology

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

The Equity Kicker

Cambridge Associates is a service provider to the Limited Partners that invest in venture capital funds that’s known for the quality of its research. The dangerous thing for early stage investors is dilution by later stage investors.

How to Get Superior Returns in Venture Capital

David Teten

Traditional venture investing is challenging. That said, one limitation in early-stage investing particularly is that 2022’s growth sectors probably don’t fit neatly into a vertical we can define today. The companies receiving venture capital do not look like the rest of America.

The Pre-Seed FAQ

K9 Ventures

You see, Dan knows more about venture than most people; and if Dan isn’t aware that “pre-seed is a thing,” then I haven’t done a good enough job of explaining to the world what I and K9 do! Luckily, Kia Kokalitcheva followed up with a post titled “ The rise of “pre-seed” venture capital ,” that made me feel just a tad better, but that uneasy feeling still didn’t leave me. Pre-Seed is the first institutional capital invested in a company. Engineering Capital.

New money into venture explains ups and downs in the market

The Equity Kicker

I just saw a great presentation from Mark Suster/Upfront Ventures on the State of the Venture Capital in 2016 which explains the discrepancy between the sentiment in the market and the observation that there are lots of funds out there which need to deploy capital.

Andreessen Horowitz and the disruption of Silicon Valley

The Equity Kicker

In the traditionally slow moving world of venture capital they have gone from standing start to raising $4bn across three funds in 5 years – Summit Partners , an older highly successful later stage VC took 15 years to achieve the same feat. Venture Capital

Four years at Version One & some thoughts on “Moneyball for VC”

Version One Ventures

My answers must have impressed him enough that Boris suggested we meet in-person two weeks later when he would be visiting SF from Vancouver. Four years later, we certainly continue to complement one another and I’m thrilled to be part of the Version One partnership. In fact, in 2015, Aileen Lee at Cowboy VC found that only 0.14% of venture-backed consumer and enterprise tech startups became unicorns. So, what do we do at the seed stage?

Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. I explain the difference later in the post or you can click through on this link above for an explanation).

How to Impress Angel Investors and Make It into “Startup Heaven”

Up and Running

Before I jump in and share the secrets of how to impress angel investors, I should tell you what an angel investor is, and how they differ from venture capitalists. Angels vs. venture capitalists. Angels differ from venture capitalists in many ways.

On the Road to Recap:

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.” Twelve to eighteen months later, you hit the road and do it again — super simple. By the first quarter of 2016, the late-stage financing market had changed materially. The adjustment does not happen now, it will happen later.

Some Thoughts On The IPO Market For Web Companies

A VC : Venture Capital and Technology

What is possibly more interesting is that the public markets are valuing these companies at less than the late stage private market might value them at. The past decade (post Internet bubble, post Sarbox) brought a new normal to the late stage venture capital market. Later-stage rounds and "setting the bar too high" ( stocks Venture Capital and TechnologyWe have an IPO market for web companies again.

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How Do VCs Mitigate Risk In Their Investment Portfolios?

Ask The VC

Are VCs simply looking to diversify the type and stage of companies in which they invest, or do they employ other financial hedging strategies? The primary ways VCs mitigate risk are (1) time diversification, (2) stage diversification, (3), sector diversification, (4) pro-rata or over pro-rata investing over time, and (5) number of investments in the portfolio. Stage diversification: Some funds have an early stage and late stage investing approach.

Venture Capital In Finland In 2010


In our previous story with Nexit Ventures we talked about how 2010 was a good year for venture capital in the US. This time, we're digging into the state of the venture capital industry in Finland. In 2010 the average venture capital investment was 650 000 euros.

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. If I was a ambitious startup with large capital requirements I would make sure I was in a geography where large funds invest regularly.

Make Your Own Decisions

Feld Thoughts

This is true at early stages but also true at later stages. Venture Capital decision making investing social proofWe describe Foundry Group ‘s behavior as “syndication agnostic.” ” When we make an investment, we are completely agnostic as to whether or not we have a co-investor. We make our own decisions to invest, or not to invest, independent of what other investors are thinking.

The Seeds Have Changed: An Epilogue to The New Venture Landscape

K9 Ventures

Note: This is a long post and it’s based on reflecting on a couple of years of observations in the venture industry. In June of 2013, as I was putting together my thoughts for the K9 Ventures annual meeting, I decided to sit back and reflect on what I thought was happening in “Venture Land”. This over-funding at the seed-stage created an increased supply of companies looking for Series A. The risk here is what I refer to as the curse of over-capitalization.