This is going to be BIG.

FEBRUARY 23, 2016

Either way, VC funds aren't really built around creating much of an experience for their Limited Partners. Partnership investing is boring. You give someone your money and, once a quarter, they give you a report that says what they did with your money. 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.

Limited Partner 30

Limited Partner LP Venture Capital Partner 30

This is going to be BIG.

MAY 4, 2015

Will the experience of partnering with this individual be a positive one? I have a draft deck put together for a next Brooklyn Bridge Ventures fund. I pretty much hate it. Don't get me wrong--the numbers look great. That's not it. It just doesn't really get at what's really important. I wasn't sure exactly how it missed, so I went back to first principles. What *is* really important for a venture fund?

Limited Partner 23

Limited Partner Deal Flow Valuation Partner 23

StartupCFO

FEBRUARY 5, 2013

The basic structure of a fund is as follows: - Limited Partners (LPs) commit to invest $100M over a number of years. - The VCs (General Partners or GPs) call that capital over time as they need it in order to pay expenses and make investments. -

Limited Partner 47

Limited Partner Carried Interest IPO Canada 47

Recent Buzzes - VC Experts, Inc.

JULY 14, 2011

Generally, a FoFs has greater leverage in scrutinizing a venture firm's financial reporting, its partner expertise relative to market sector focus resulting in a better risk-return ratio than direct investments. By Igor Sill, Managing Director of Geneva Venture Management LLC.

Limited Partner 18

Limited Partner Silicon Valley IRR Due Diligence 18

Recent Buzzes - VC Experts, Inc.

JULY 13, 2011

Billion represents a significant liquidity window for Venture Capitalists and their Limited Partner investors. Via a Limited Partnership (LP) arrangement, an investor is typically committing funds in the $500,000 upwards to $10 million range for 10 plus years.

Private Equity 8

Private Equity LP Silicon Valley Redemption 8

Florida Venture Blog

MAY 3, 2007

Paul Kedrosky has published another great Top Ten list, following on his previous Top Ten VC Lies. This time it's the Top Ten LP Lies. I'll give you the first five, but you'll have to visit Paul to see the rest.

Venture Capital 0

Venture Capital Restful Community Conversion 0

SiliconHills

MARCH 2, 2017

The fund was oversubscribed by $25 million and its limited partners include leading institutional investors, funds of funds and family offices. Next Coast Ventures announced Thursday that it has closed on its debut fund at $85 million. Next Coast Ventures is looking at investing in deals in Austin and in the middle part of the […] The post Austin-based Next Coast Ventures Raises $85 Million Fund appeared first on SiliconHills. Austin

Institutional Investors 23

Institutional Investors Limited Partner Partner Austin 23

A VC : Venture Capital and Technology

FEBRUARY 1, 2017

Today, sometime around 5:30/6pm PT at the Upfront Summit , my partner Andy and I are going to talk about generational change in VC firms, in a talk moderated by Lindel Eakman , who has been our lead limited partner investor at USV since we started the firm in 2003. When my partner Brad Burnham and I started USV in 2003, we told prospective investors, including Lindel, that we had no intention of building an institution.

Limited Partner 44

Limited Partner Partner Venture Capital Portfolio 44

A VC : Venture Capital and Technology

FEBRUARY 2, 2016

In a venture fund, the general partners will make something like twenty or twenty five investments. The limited partners will get back $84mm on their $50mm investment, a gain of $34mm which produces a 1.68x multiple on their investment. In the example above, those investors would make $12mm in carry on the same portfolio and the limited partners would get back ~$80mm or 1.6x.

Carried Interest 96

Carried Interest Portfolio Private Equity Limited Partner 96

Pascal's View

MARCH 17, 2010

Answer: The options here are limited, and they are (1) the LP can try to sell their interest, including the obligation to fund future capital calls, to a fund that acquires secondary interests. It is far less disruptive to the GP and to the GP-LP relationship for the exiting partner to sell to a secondary buyer, but these buyers are totally financially driven and are going to get the best deal possible for themselves.

LP 0

LP Marketing Entrepreneur Capital Call 0

Pascal's View

MARCH 19, 2010

This is the last in our series of 10 frequently asked questions from investors in venture capital partnerships. Susan Mangiero , CEO of Investment Governance’s Fiduciary X , asked me the following: Question: I’ve read that some GPs are suing LPs for not making capital calls.

LP 1

LP Web Capital Call Programming 1

Pascal's View

MARCH 15, 2010

This is the sixth 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: You had some thoughts about contract terms.

Clawback 1

Clawback Web LP Limited Partner 1

Recent Buzzes - VC Experts, Inc.

JULY 12, 2011

Billion represents a significant liquidity window for Venture Capitalists and their Limited Partner investors. Investor confidence in Venture Capital is at an all time high. The unusually strong Initial Public Offering (IPO) market and its pent up pipeline is due in part over the tremendous success of Venture Capital funded Linkedin's recent public market debut. LinkedIn shares skyrocketed to a high of $92.99 per share from its opening of $45., establishing a market value of $8.9

IPO 0

IPO Initial Public Offering Portfolio Acquisition 0

Pascal's View

MARCH 8, 2010

It’s that time of the year again– time to send out audited financial statements and K-1’s to your limited partners– which means it’s also a great time to address some of the common questions that investors raise about VC partnership governance and disclosure issues.

LP 1

LP Delaware Advisory Board Silicon Valley 1

Seed Stage Capital

APRIL 21, 2009

Venture capital investing is supposed to be a long-term investment play.venture funds generally have 7-10 year durations, over which time they invest the money raised from limited partners (e.g., skip to main | skip to sidebar 21 April 2009 Tough Market for Entrepreneurs?

Marketing 2

Marketing SBIC Term Sheet IPO 2

Recent Buzzes - VC Experts, Inc.

JULY 13, 2011

Huge problems still remain to be solved and massive opportunities loom as major corporations, mid to small businesses all seek competitive advantages via new technologies. The emergence of Software-as-a-Service and Cloud computing are major tectonic shifts occurring in the global software ecosystem. Technology's self-renewing cycle of new wave innovation continues, driven mostly by cost improvements, easier use and vastly greater efficiencies.

Cloud 0

Cloud Software Security Global 0

A VC : Venture Capital and Technology

FEBRUARY 21, 2013

When I got into the business in the mid 80s, I was schooled that you needed to produce at least 20% annual returns net to the limited partners to stay in business. This post is for everyone who thinks venture capital is an easy business. I'd like to dispel that notion.

Venture Capital 142

Venture Capital Early Stage Later Stage Limited Partner 142

Both Sides of the Table

JULY 25, 2016

Venture capitalists raise money with a goal of returning 4x the amount they raise to their Limited Partners (LPs).

Venture Capital 146

Venture Capital San Francisco Limited Partner Startup 146

Steve Blank

MARCH 16, 2016

VC’s raise money from their investors (limited partners like pension funds) and then spread their risk by investing in a number of startups (called a portfolio). BTW, Angel investors do not have limited partners, and often invest for reasons other than just for financial gain (e.g.,

Liquidity Event 145

Liquidity Event Founder Liquidation Preference Acquisition 145

Gust

MAY 10, 2014

If you mean someone investing mostly other people’s money through a seed fund, they are venture capitalists, and their days are spent like other VCs, meeting with prospective investments, mentoring portfolio companies, raising money from limited partners, negotiating deals, and so forth. There is no such thing as a full-time angel investor (or if there is, I’ve never met one.).

Angel Investor 59

Angel Investor Accredited Investor Limited Partner Portfolio 59

David Cohen

FEBRUARY 13, 2017

We became a Limited Partner in Project 11 when it launched and Katie continues to mentor at Techstars regularly. Everyone who knows Katie Rae at Techstars is thrilled that she’s taken a lead role with The Engine at MIT, a new venture fund and incubator space there. Katie was the Managing Director at Techstars for our Boston program from 2010 to 2014.

Boston 23

Boston Engineer Limited Partner Incubator 23

thebarefootvc

JULY 3, 2017

Limited partners (LPs), who manage the capital that gets deployed into venture capital funds, can play an important role in diversifying the funding landscape. Limited partners are pension funds, university endowments, funds of funds (who get their money from pension funds), family offices and foundations. Over the past month, Silicon Valley has been at the forefront of many conversations outside of the technology world.

LP 22

LP Silicon Valley Limited Partner United States 22

Venture Hacks

FEBRUARY 12, 2010

Tags: Limited Partners Pitching Plans VC Industry

Valuation 1

Valuation Naming Entrepreneur Limited Partner 1

Venture Hacks

MARCH 4, 2010

Thanks to George Zachary , a partner at Charles River Ventures , for sponsoring Venture Hacks this week. Venture firms will be under significant pressure to outperform their peers and outperform their limited partners’ common benchmark indices like NASDAQ.

Due Diligence 1

Due Diligence Valuation Dividend Portfolio 1

A VC : Venture Capital and Technology

OCTOBER 9, 2016

At that time (early 2000s), the big VCs in the bay area were kicking out FOIA obligated limited partners out of their funds. In the summer of 2003, Brad Burnham and I set out to raise a $100mm early stage venture capital fund. We had both been successful VCs in other firms and we had a thesis that the second wave of the Internet was upon us and that large networks were going to get built in this phase. The term “web 2.0”

Venture Capital 90

Venture Capital Burn Rate Early Stage Portfolio 90

The Equity Kicker

APRIL 6, 2016

Invest on behalf of 3rd party Limited Partners. Forward Partners is a tick on all four criteria. I’ve been reading a lot about the development of micro-VC this afternoon.

Limited Partner 45

Limited Partner .Net Partner Global 45

A VC : Venture Capital and Technology

MARCH 26, 2011

Our shareholders are the limited partners who allow us to invest their capital. Bijan has a really good blog post up today about Spark 's approach to investing in competing companies (they don't). He says: I’m quite sure that we will miss a few important investments and i’m sure we could be more aggressive with and flirt with the gray line that we are trying figure out every day. Our firm takes an almost identical approach to Spark on this topic.

Limited Partner 54

Limited Partner Partner Entrepreneur Customer 54

Non-Linear Growth

NOVEMBER 6, 2009

I once interacted with an entrepreneur who chose another investor over us because, “we understood the business too well” Apparently this entrepreneur thought my understanding of his business would be a “burden” VCs have someone to report to; Limited Partners and Advisory Boards. Yesterday, my Partners and I reported on our progress here at Meritage Funds to our “bosses”, our Limited Partners and Advisory Board, at our Annual Meeting.

Venture Capital 0

Venture Capital Portfolio Entrepreneur Advisory Board 0

CasaSiegel

SEPTEMBER 19, 2011

With the support of some key Limited Partners (LPs), our second fund is already larger than our first, and we will thus have the ability to execute on the strategy of investing in breakthrough technologies that come from major research institutions and to deliver venture-level returns. 5) Keep Your Eye on the Prize – The partners at X/Seed will not generate wealth for our selves via our management fees. CasaSiegel.

Portfolio 0

Portfolio Salary LP Venture Capital 0

Version One Ventures

SEPTEMBER 12, 2017

Blockchain and ICOs are giving VCs new ways to run their own businesses – from changing agreements with limited partners to allow the fund to buy tokens and currencies directly to figuring out how to safely store token and currencies. These days not a single meeting with a fellow VC goes by without talking about Blockchain and how to invest in this space. We are all a bit puzzled by how quickly this market has evolved.

Venture Capital 23

Venture Capital LP Dilution Business Model 23

A VC : Venture Capital and Technology

OCTOBER 23, 2011

They taught me a lot about finding and researching opportunities, structuring deals, managing a fund, and working with limited partners.  So it is the entrepreneurs I worked with in the first five years I was a partner, people like Isaak, Ron Schreiber and Jordan Levy, Mark Pincus and Sunil Paul, and Seth Godin that I have to thank for teaching me how to do what I do. Isaak Karaev stopped by and left a comment in yesterday's thread.

Jordan 80

Jordan Limited Partner Entrepreneur Reputation 80

Gust

MAY 7, 2014

The general partners of a venture capital fund make money… …by raising the bulk of the capital that the fund’s investable capital from “Limited Partners”, usually institutions such as university endowments, insurance companies and pension funds. Invested Interests capital company general partners investing IPO startup venture capital fund

Venture Capital 20

Venture Capital Limited Partner Carried Interest Salary 20

Both Sides of the Table

SEPTEMBER 1, 2016

Scott Kupor of A16Z responded with a comprehensive overview of valuation methodology in a post that while accurate feels more targeted at sophisticated Limited Partners (LPs) who invest in funds. Upfront Ventures has partnered with Andreessen Horowitz on several deals.

Jordan 135

Jordan LP Partner Limited Partner 135

K9 Ventures

JULY 19, 2012

This new $40M fund is backed by several high quality institutional limited partners including university endowments, foundations, family offices and fund of funds and key individuals. I am pleased to announce the formation of K9 Ventures II, L.P.

Seed Stage 47

Seed Stage LP Limited Partner San Francisco 47

K9 Ventures

JULY 19, 2012

This new $40M fund is backed by several high quality institutional limited partners including university endowments, foundations, family offices and fund of funds and key individuals. I am pleased to announce the formation of K9 Ventures II, L.P.

Seed Stage 47

Seed Stage LP Limited Partner San Francisco 47

Gust

SEPTEMBER 10, 2014

Instead, they have a limited amount of money entrusted to them by limited partners, and they invest in a very, very few companies each year. The question is based on a misunderstanding of how venture capital investment works. First of all, VC funds do not invest in ideas. What VCs invest in are operating companies that are ready (or almost ready) to scale. There are many wonderful ideas, all of which are not fundable. Only companies get funded.

Limited Partner 25

Limited Partner Venture Capital Operations Partner 25

The Equity Kicker

MAY 31, 2016

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. That’s the Forward Partners way.

Early Stage 30

Early Stage Dilution Distribution Later Stage 30

A VC : Venture Capital and Technology

AUGUST 3, 2014

And I do not believe our limited partners are sharing our reports with them. CB Insights published a “teardown” of USV’s investment strategy last week. It’s a pretty solid piece of work considering they did not have access to any of our internal data. The got some stuff wrong, however. 1) We did not participate in Zynga’s “megaround” in Feb 2011. 2) We only have six main investment vehicles; USV 2004 – $125mm. USV 2008 – $160mm.

Stealth 43

Stealth Portfolio Limited Partner Valuation 43

The Equity Kicker

NOVEMBER 18, 2015

I’m at the Super Investor conference in Amsterdam, which is the main event each year when private equity and venture capital fund managers and their investors (Limited Partners out LPs) get together.

Private Equity 34

Private Equity Limited Partner Differentiation Partner 34

A VC : Venture Capital and Technology

FEBRUARY 23, 2012

But I am fairly sure that my partners and I and our limited partners will be happy to let this fund play itself out over a longer period of time. I met with a group of very experienced and sophisticated investors yesterday who make up the investment committee of a large charitable foundation that is an investor in USV.

Portfolio 88

Portfolio Limited Partner IPO Valuation 88