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 118

Limited Partner Partner Deal Flow Valuation 118

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 95

Limited Partner Venture Capital Partner LP 95

David Teten

MARCH 21, 2018

Similarly, our limited partner investors have their own due diligence standards, and we manage HOF Capital to keep in line with their standards and expectations. – Specifically if you’re in the process of joining a fund: How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm. Ask on what KPIs each Partner is evaluated. The post Limited Partner Due Diligence on Venture Capital and Private Equity Funds appeared first on David Teten.

Due Diligence 60

Due Diligence Private Equity Limited Partner Venture Capital 60

David Teten

MARCH 21, 2018

Similarly, our limited partner investors have their own due diligence standards, and we manage HOF Capital to keep in line with their standards and expectations. – Specifically if you’re in the process of joining a fund: How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm. Ask on what KPIs each Partner is evaluated. The post Limited Partner Due Diligence on Venture Capital and Private Equity Funds appeared first on David Teten.

Due Diligence 60

Due Diligence Private Equity Limited Partner Venture Capital 60

Austin Startup

MARCH 15, 2021

Capital Factory has partnered with AngelList Rolling Funds to better meet the needs of today’s investors. texas investor-relations limited-partner startup venture-capital

Accredited Investor 93

Accredited Investor Texas Limited Partner San Antonio 93

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 28

LP Limited Partner Government Capital Call 28

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. The LPs claim that they are cash constrained and/or the VC fund has not performed. Why throw more money their way? Do you see a trend here of broken contracts?

LP 28

LP Limited Partner Government Capital Call 28

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. Question: How much information are limited partners (pensions, endowments, foundations, etc.)

LP 28

LP Delaware Limited Partner Advisory Board 28

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 71

Institutional Investors Limited Partner Austin Partner 71

View from Seed

JULY 26, 2019

sometime back in 2010 or early 2011) one of the limited partners we met with asked us what our “favorite future” was for NextView. Another phrase we use internally at NextView pretty often is that of a “favorite future”. Early in NextView’s history, when we were raising our first fund (e.g. We were excited to talk about our vision and aspirations for the new VC firm we were building, but also intrigued by this as a general question.

Limited Partner 136

Limited Partner Founder Partner Startup 136

Mucker Lab

MARCH 8, 2016

Just as entrepreneurs should aspire to raise capital from value-added, “smart money” investors, we, too, have focused on partnering with committed, long-term, institutional limited partners (LPs). We are consumed with generating great returns for our limited partners. Four years after founding and bootstrapping Mucker Capital , we are pleased to announce the close of a new $45 million fund, Mucker III.

Burn Rate 95

Burn Rate Limited Partner Bootstrapping Portfolio 95

David Cohen

SEPTEMBER 13, 2019

She told me that most of her Limited Partners (investors in her fund) didn’t seem to care about the frequency of capital account statements. I’m a personal investor in about 20 micro-VC funds.

Management 76

Management .Net Limited Partner Finance 76

David Teten

JANUARY 23, 2021

I’ve been fortunate to be a Partner at two different VC firms over the past 9 years, and we’ve grown AUM 10X both times. Build the firm as much as possible before you solicit limited partners. . Note that limited partners view formatting as a proxy for professionalism.

Private Equity 78

Private Equity Venture Capital Equity LP 78

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 108

Venture Capital Limited Partner Carried Interest Salary 108

Agile VC

JULY 26, 2019

sometime back in 2010 or early 2011) one of the limited partners we met with asked us what our “favorite future” was for NextView. Reading Time: 2 minutes. This post also appears at NextView’s blog. Another phrase we use internally at NextView pretty often is that of a “favorite future”. Early in NextView’s history, when we were raising our first fund (e.g.

Limited Partner 100

Limited Partner Founder Partner Startup 100

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). Many first-time founders seek advice when thinking about what ideas would be great for a startup company and receive the wrong advice that you need to focus on a billion-dollar idea. There are very few ideas that are obviously a billion-dollar idea from the start. So what should you do?

Venture Capital 268

Venture Capital San Francisco Limited Partner Startup 268

This is going to be BIG.

FEBRUARY 21, 2019

A lot of VC fund pitches—and I know this because I used to vet VCs for a living as an institutional limited partner at a pension fund—sound the same. If you want to learn more about how VC funds get evaluated and you’re either an accredited investor, a non-partner at a VC fund, or work on behalf of a family office, check out this event tomorrow.

Accredited Investor 91

Accredited Investor .Net Term Sheet Deal Flow 91

YoungUpstarts

JUNE 13, 2020

General Partner. What if the business doesn’t belong to you, but several general partners ? That being said, if partners start suing other partners and you lose and fail to pay up, that’s probably going to hurt your credit score. Limited Partner.

Bankruptcy 171

Bankruptcy Limited Liability Company Partner Salary 171

Haystack

JANUARY 2, 2020

And, the more funds that are raised, the more fees VCs can collect, which are contractually guaranteed in limited partner agreements.Only time will tell which approach is best or optimal. A topic that’s been on my mind a lot in 2019 is “time diversity” in venture capital funds.

Portfolio 71

Portfolio Vertical Limited Partner Global 71

David Teten

MAY 16, 2017

Historically, the process of winning capital from limited partners has been opaque. LIMITED PARTNERS’ PERSPECTIVE. Origins is a podcast about Limited Partners, created by VC Notation Capital. Denis Tse: Fund Management Craftsmanship: An LP’s Food for Thought for Emerging VC General Partners. GENERAL PARTNERS’ PERSPECTIVE. However, in the last few years a few have started to use social media and become more transparent.

Private Equity 60

Private Equity Venture Capital Equity LP 60

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 129

Venture Capital LP Dilution IPO 129

Babbling VC

NOVEMBER 2, 2018

The same goes for the LP's (limited partners) that invest in venture funds. We're so misled by what we often read in blogs and press stories or see on TV shows. One way or another, we tend to react to drama and they who produce content feed on this. In reality, there is often very little drama or noise when things go terribly wrong. This is why people are so often surprised to see things fail.marriages, businesses, venture funds and so forth.

LP 135

LP Limited Partner Management Naming 135

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). In exchange for the limited partners tying up capital for long periods by in investing in VCs (who are investing in risky startups,) the VCs promise the limited partners large returns that are unavailable from most every other form of investment. There are many reasons to found a startup.

Liquidity Event 160

Liquidity Event Founder Liquidation Preference Acquisition 160

Steve Blank

FEBRUARY 3, 2011

Their fiduciary responsibility was to manage a portfolio of investments for their limited partners. At the end of the day VC’s have to provide their limited partners with great returns or they aren’t going to be able to raise another fund. One of the biggest mistakes entrepreneurs make is not understanding the relationship they have with their investors. At times they confuse VC’s with their friends. Lets Go to Lunch.

San Francisco 244

San Francisco Silicon Valley Venture Capital Limited Partner 244

This is going to be BIG.

JUNE 15, 2020

In venture, it’s all about getting an opportunity to make partner and being included in the carry—the economic upside of a fund. Mentorship and the building of track records within other people’s firms is an important pathway to partner, even in your own fund.

Venture Capital 110

Venture Capital Institutional Investors Hiring Partner 110

Haystack

JULY 3, 2019

This isn’t the only example, of course, but it’s the most recent one and illustrates what the bar is for building a team of GPs and limited partners. Earlier this year, I reflected on the difference between “fund investing” vs “fund management.” ” It’s a useful post for emerging managers, I’d recommend reading it.

Chad 90

Chad Angel Groups Limited Partner Networking 90

Austin Startup

JULY 15, 2019

You will work closely with Joshua Baer, Gordon Daugherty, Bryan Chambers, the Ventures Team, limited partners, external venture capitalists, lawyers, accountants and startup CEO’s to review legal agreements, perform our diligence checklist, and make sure transactions close in a timely manner. You will coordinate and administer the most active venture capital fund in Texas and see an insane amount of dealflow. You’ll know the inside details about almost every deal that goes down.

Silicon Valley 54

Silicon Valley Texas Warrant Early Stage 54

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.

Engineer 50

Engineer Boston Incubator Limited Partner 50

Both Sides of the Table

FEBRUARY 25, 2019

Here are some observations I have from this exposure: If a company moves from strength-to-strength with predictable outcomes, easy financings, low staff turn-over, limited competitive threats then the composition of the board probably doesn’t matter as much. Every year I invited my largest investors to NYC to have an LPAC meeting (Limited Partner Advisory Committee?—?kind

LP 246

LP Startup Burn Rate Stock Options 246

This is going to be BIG.

SEPTEMBER 19, 2018

Smaller funds are always looking for limited partners and co-investors in their deals—so starting an angel group or just being willing to make such introductions in your network goes a long way. You’ve got a great resume. You went to top schools, trained at a prestigious bank/consulting firm/etc, and you’ve succeeded in the corporate world doing some important and impactful stuff. Now you want to take that skillset over to the startup world and you’ve got a lot to offer.

Angel Groups 173

Angel Groups Networking Salary Limited Partner 173

This is going to be BIG.

FEBRUARY 18, 2019

All were backed based on the sole criteria that they had the potential to make my limited partners a lot of money. Brooklyn Bridge Ventures , the pre-seed and seed stage VC fund I run in NYC, has invested in 64 companies in the last six and a half years. Twenty-five of them have at least one female co-founder. Fifteen had co-founders over 40. Five have LGBTQ+ founders. Three teams have African-American founders. Three of the founding teams are married couples.

Venture Capital 130

Venture Capital Portfolio Seed Stage Founder 130

This is going to be BIG.

NOVEMBER 4, 2018

It’s an entirely fair question—and the risk is that limited partners, founders, or other VCs might not want to work with me because I’m vocal about my political views. As a solo General Partner, my firm is me—and there isn’t a difference between investor Charlie and personal Charlie. Limited partners judge my investment acumen. For the last two years, I’ve been pretty vocal about politics on social media , in my weekly tech community newsletter and on this blog.

Arkansas 95

Arkansas Algorithm Limited Partner Deal Flow 95

VC Adventure

OCTOBER 14, 2020

The Foundry Network , as we’ve been calling it, encompasses founders, CEOs, executives, general partners of our underlying venture capital fund investments, limited partners (our investors as well as other investors in the funds we have investments in), and other members of our ecosystem.

Networking 103

Networking Hiring North America Due Diligence 103

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’d like to thank each of the new limited partners in K9 Ventures II for their support and for the confidence they have expressed in me and in K9 by making this commitment. I am pleased to announce the formation of K9 Ventures II, L.P. – A $40M technology-focused micro-VC fund.

Technology 102

Technology LP Seed Stage San Francisco 102

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’d like to thank each of the new limited partners in K9 Ventures II for their support and for the confidence they have expressed in me and in K9 by making this commitment. I am pleased to announce the formation of K9 Ventures II, L.P. – A $40M technology-focused micro-VC fund.

Technology 102

Technology LP Seed Stage San Francisco 102

ithacaVC

DECEMBER 22, 2012

One final thought – what about the VC’s fiduciary duties to its own investors (called limited partners). It is reasonable to think that the limited partners would expect their money managers (i.e., I think many limited partners would answer “yes” Love to hear your thoughts on this. I recently engaged in a conversation (over a few days) about the need for a seed stage company to have a board member other than the founder.

Seed Stage 68

Seed Stage Preferred Stock Limited Partner Angel Investor 68

YoungUpstarts

JANUARY 9, 2020

In a partnership, the partners share ownership of and responsibility for the financial well-being of the enterprise. When you are planning to file your taxes as a partnership, it is important to get on the same page with your business partners and co-founders.

Partner 137

Partner Cofounder Private Equity .Net 137

This is going to be BIG.

JUNE 21, 2016

If you're a VC, you should do whatever you can to make your limited partners feel like investors. I met with a family office investor yesterday and we were talking about his family's interest in diversifying their investments into early stage companies. They mostly participated in real estate transactions--an asset class where actual due diligence is conducted, deals take months, even years to close, and assets are sometimes held for decades.

Due Diligence 88

Due Diligence Limited Partner Early Stage Networking 88

ithacaVC

JULY 10, 2013

Fred’s post hits some really interesting points on how valuations can actually impair limited partners (those investing in the VC fund) more than general partners (those running the fund). I have posted on startup valuations a couple of times. First on October 12, 2012 and then on November 28, 2012. On June 27th Fred Wilson wrote a post called Valuation vs. Ownership. Great post.

Valuation 46

Valuation Limited Partner Early Stage Partner 46

Early Growth Financial Services

JANUARY 20, 2014

Ultimately VCs seek to provide our investors (limited partners or corporate sponsor) with a significant return on … read more > By Marlon Nichols. Originally published on MarlonNichols.com. As an early-stage venture capital investor with a keen emphasis on the seed stage, I spend a lot of time at startup accelerators working with first-time entrepreneurs.

Seed Stage 44

Seed Stage Venture Capital Limited Partner Early Stage 44

Both Sides of the Table

FEBRUARY 6, 2019

Yes, VC / Startup Funding is up Massively If you look at how much VC firms have raised from Limited Partners (LPs) over the past 2 decades you’ll see that we’ve returned to a level that we haven’t seen since 1999. I’ve heard a lot of people question whether there is too much money in venture capital chasing too few great deals. “We’re We’re in a new tech bubble!” some have pronounced. Valuations are out of control” is the mantra of others.

Venture Capital 256

Venture Capital IPO Mezzanine LP 256

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 84

Limited Partner Venture Capital Operations Partner 84

Both Sides of the Table

AUGUST 25, 2015

Long before the markets corrected my smartest professional trader friends and limited partners were telling me that many people in the market were telling me that all eyes were glued on Sept 16-17 when the FOMC meets to discuss interest rates. Last night I wrote a post about how the fall in the stock market over a 3-day period may affect the venture capital markets. If you’re an entrepreneur or VC who wants somebody else’s view on that you should read it.

Valuation 260

Valuation Stock Balance Sheet Burn Rate 260