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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. Venture Capital and Technology

The Experience of Being a Limited Partner in Venture Capital

This is going to be BIG.

You run X amount of capital and Y percentage of that is allocated to venture capital. Either way, VC funds aren't really built around creating much of an experience for their Limited Partners. They don't have a directive to be invested in venture and they're not aiming to make some target return to pay out benefits or university operating expenses, etc. Partnership investing is boring.

How to Build a Startup & Understanding Venture Capital

Both Sides of the Table

And if you do happen to be lucky and find the right mountain to climb, if you find that you’ve started ascending the peak before others have found the right trail — then venture capital is for you. But you need to understand venture economics.

Where Do Venture Capital Dollars Actually Come From? This Visual Explains

Agile VC

Most folks reading this will know that many startups were built in part with the help of venture capital. So I wanted to dive a little deeper into what I call the startup capital supply chain. Google, Intel Capital).

Why Was Winter in Venture Capital Funding so Short?

Both Sides of the Table

It was only a year ago that many in the Venture Capital industry were predicting that “winter was coming” and to be fair the author of this post was chief amongst them. While this it total FDI as opposed to just venture, it should give you an indication of the international trend.

The Singularity hits Venture Capital (Wilson/Kauffman Redux)

Fred Destin

I mean, really, who still wants to be a venture capitalist ? And then we have Fred Wilson telling us that should venture capital die, there's always be blogging. I an now expecting Chris Dixon to say he is turning to Venture Capital , and then I will be officially confused. The schizophreny of the venture capitalist. Venture partnerships need to collectively find winners and drive as much cash at reasonable valuations as they can into these stars.

Why being a VC sucks. Advice to anyone who wants to get into venture capital.

This is going to be BIG.

I probably get around a dozen e-mails a week asking me how to get into venture capital. On top of that, anytime I talk to anyone who wants to get involved in startups but isn''t sure what they want to do, inevitably, I hear, "And then I was thinking maybe I should look into venture capital, too.". I''ve never really debated people on why they want to get into venture in the first place, even though a lot of people have misconceptions of it.

The State of Cleantech Venture Capital: What Lies Ahead

Secret Formula

In late 2011 I decided to write up an internal analysis I’d done at Venrock about the state of cleantech venture capital and make it available broadly. What’s happening to cleantech venture capital? Limited partners are backing off. Philanthropic capital.

That new era of Venture Capital is here

Seth Levine's VC Adventure

A couple of years ago I posted about what I thought would be the “new era of Venture Capital.” From that post: I believe what we’re going to see in the venture industry is a bifurcation of fundraising– basically a barbell on the graph of fund sizes. Venture Capital VC Fundraising VC Industry Venture Fundraising Venture Industry” Specifically I was predicting that we’d see a strong barbell effect in VC fundraising.

Venture Math 101

StartupCFO

Yes, it would always be great from an entrepreneur’s perspective for more capital to be available. I have a theory about why founders perceive there to be a lack of capital: The reason most founders think there is not enough capital is that they get rejected when they go looking for it.

How do venture capital firms make money by investing in startups?

Gust

The venture capital fund itself makes money… …by investing early in a startup company’s life, when success is not at all assured. In exchange for investing capital to help the company grow, the fund receives an ownership interest in the company. In either case, the venture capital fund sells the shares that it owns, for more money than it originally paid for them.

Venture Capital and "Innovation"

Information Arbitrage

Many have recently been critical of the role of the venture industry in financing “true innovation.” This is not how the venture industry is supposed to operate.” When it comes to breakthroughs in long time-scale, massively capital intensive areas in the hard-sciences, e.g., battery technology and solar technology writ large, I’d posit that the right source of financing for this kind of innovation is either the Government or large corporations.

5 Best-Kept Secrets About Venture Capital

Inc Startups

The most important things you need to know about how venture capital works--demystified. After 10 years as a successful entrepreneur, I''ve recently become a venture capitalist. Or at least, you''ll find it easier and experience less confusion and friction if you try to raise funding , or work in a venture capital-backed company. Here are my top 5 secrets I''ve learned about venture capital: 1.

When it Comes to Venture Capital, Do Like Warren Does

Growthink Blog

All of a sudden, it is boom time again for venture capital funds, with over $10.3 billion in fresh capital raised by 578 funds in the 1st quarter, up 36% from 2012. But for the individual investor, is investing in a venture capital fund really a good idea? venture funds - and with so many of them pursuing similar deal sourcing strategies and approaches - it has become extremely difficult for VCs to find and secure high potential, well priced deals.

The Next Step in Disrupting Venture Capital: Emerging Manager Funds

Will Price

The Venture Capital industry is ripe for disruption. Over the last few years, super angels offered new capital to the market and groups such as Y-Combinator provided young entrepreneurs new avenues to success. The venture industry, however, lacks a very common model that the hedge fund industry has mastered - the emerging manager strategy. Why don't we see a similar model at play in the venture industry? I believe that both limitations are solveable.

Investing in Venture Capital - Limited Partner or Fund of Funds? - Part 1

Recent Buzzes - VC Experts, Inc.

By Igor Sill, Managing Director of Geneva Venture Management LLC. Investor confidence in Venture Capital is at an all time high. Billion represents a significant liquidity window for Venture Capitalists and their Limited Partner investors.

The 99: How the SEC protects you from venture capital returns.

This is going to be BIG.

Take venture capital, for example. To benefit from the explosive growth of companies like Uber, Airbnb, Dropbox, etc, you had to fit in either one of two categories: be an angel investor already in an inner circle of experienced angels and entrepreneurs, largely located in Silicon Valley, or be an investor in a venture capital fund that backed those companies. Below that and they need to keep you from investing in really risky stuff, like venture capital.

What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking

Steve Blank

Luckily in the last quarter of the 20 th century a new source of money called risk capital emerged. Risk capital takes equity (stock ownership) in your company instead of debt (loans) in exchange for cash. Filed under: Technology , Venture Capital.

Why the LP Outlook is Good for Venture and Startups in 2017–2020

Both Sides of the Table

Every year Upfront Ventures surveys Limited Partners (LPs) who are the main source of capital that invests in VC funds and thus the main source of capital that goes to startups to get an early-warning sense of the year ahead, leaving aside any Black Swans.

LP 75

The State of Cleantech Venture Capital, Part 4: Parting Thoughts

Secret Formula

This week we’ve analyzed the state of cleantech venture capital and used data to discern myth from reality. In summary, we’ve found that: There will be sufficient late-stage capital in the next few years to feed the ’06-’08 “baby boom” of cleantech start-ups, but there may be a corresponding dearth of Seed/Series A money. Cleantech venture capital investment only became substantial in 2006, and the average VC-backed start-up takes eight years from founding to exit.

That new era of Venture Capital is here

Seth Levine's VC Adventure

A couple of years ago I posted about what I thought would be the “new era of Venture Capital.” From that post: I believe what we’re going to see in the venture industry is a bifurcation of fundraising– basically a barbell on the graph of fund sizes. Venture Capital VC Fundraising VC Industry Venture Fundraising Venture Industry” Specifically I was predicting that we’d see a strong barbell effect in VC fundraising.

Don’t Give Away Your Board Seats

Steve Blank

That said, professional venture capital firms that lead a Series investment round usually make their investment contingent on a board seat. And they have a fiduciary responsibility to their own limited partners.) Filed under: Venture Capital. Venture Capita

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

Secret Formula

I’ve heard it said more than once in the past month that venture-backed entrepreneurship clearly isn’t working here, so maybe we should all pack our bags and go home. We can answer this question by using yesterday’s financing data to project tomorrow’s capital requirements.

The Fantastical, Stupendous, Wonkariffic Tale of How Ample Hills Creamery Raised a $4 Million Venture Capital Round

This is going to be BIG.

It's a story that just hit a milestone--a $4mm round of venture funding that I'm ecstatic to say Brooklyn Bridge Ventures just led. But just because you could see them everywhere doesn't make them an obvious venture bet--nor does it tell the story of how the round even came to be.

Venture Capital, Pitching, and Business Love

Inc Startups

At an annual meeting of venture capitalists, a Morgan Stanley managing director gave five tips on how to pitch him. That was just some of the advice venture capitalists got at the last session of the National Venture Capital Association conference in San Francisco on Wednesday.

Valuation vs Ownership

A VC : Venture Capital and Technology

It's the limited partners who get screwed by this stuff. Venture Capital and Technology I am talking at the PreMoney conference today (via Skype) and I woke up thinking about the challenges facing the VC industry. I hope to talk a bit about this at the conference. Some investors are ownership focused. They want to own 20% of the business but care less about the valuation. Let's take a hypothetical Series A round.

The State of Cleantech Venture Capital, Part 2: The Investors

Secret Formula

tl;dr: There’s a widespread perception that cleantech venture capital must be tanking compared with VC overall. In yesterday’s post , we looked at the amount of capital that’s been invested in cleantech start-ups to date. For venture-backed companies overall, it’s 9.4

IPO 8

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. That’s the Forward Partners way. Uncategorized Venture Capital

Let Your Winners Run

A VC : Venture Capital and Technology

This does create a bit of an issue in that we raise ten year venture capital funds. 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. Venture Capital and TechnologyI 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.

Entrepreneurs Teach VCs to be VCs

A VC : Venture Capital and Technology

It was the first investment we made at Union Square Ventures and we sold that company a few years ago. 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.

Non traditional venture investors are still getting to grips with startup investing

The Equity Kicker

Perhaps the biggest story in venture capital from 2012-2015 was the rise in late stage valuations. Against this backdrop the folks at Industry Ventures, a Limited Partner that invests in VC firms, spoke with 40 mutual fund and hedge fund managers to find out what they are thinking.

Similarities between raising a venture fund and raising for a startup

The Equity Kicker

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. Uncategorized Venture Capital

On the Road to Recap:

abovethecrowd.com

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.” 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. LIMITED PARTNERS (LPS).

The Perception Of Conflict Is Conflict

A VC : Venture Capital and Technology

Our shareholders are our limited partners. entrepreneurship Venture Capital and Technology VC is a service business like law firms and ad agencies. Our customers are the entrepreneurs we back. When we do a good job of helping our customers create value, our shareholders benefit. But, like law firms and ad agencies, it is hard to provide truly objective and unbiased advice when you have a conflict of interest.

Investing In Competing Companies

A VC : Venture Capital and Technology

Our shareholders are the limited partners who allow us to invest their capital. Venture Capital and TechnologyBijan 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.

How to Develop Your Fund Raising Strategy

Both Sides of the Table

There is all sorts of advice on the Internet about how to raise capital. I’ve raised money as a “hot company” and I’ve raised capital when no one would return my phone calls. Partners make investment decisions. Raising Venture Capital Startup Advice

Content From LPs

Feld Thoughts

My partner Lindel Eakman wrote a post a few days ago about his transition from Austin to Boulder and a really helpful one about how to work with him titled A Human User Interface….with This prompted me to poke around for other content from the limited partner (LP) side of the LP/VC/entrepreneurship universe. OpenLP is a new site moderated by the gang at Sapphire Ventures that seems to be a collection of all the LP stuff floating around the web.

Announcing K9 Ventures II – A $40M technology-focused micro-VC fund

K9 Ventures

I am pleased to announce the formation of K9 Ventures II, L.P. K9 Ventures started investing in 2009 with our first fund, K9 Ventures, L.P., With the new fund K9 Ventures will be able to invest between $250K – $750K as an initial investment in the companies we back.

Announcing K9 Ventures II – A $40M technology-focused micro-VC fund

K9 Ventures

I am pleased to announce the formation of K9 Ventures II, L.P. K9 Ventures started investing in 2009 with our first fund, K9 Ventures, L.P., With the new fund K9 Ventures will be able to invest between $250K – $750K as an initial investment in the companies we back.

The Economics of a Small VC Fund

This is going to be BIG.

How does one make money raising a venture fund of this size? You charge your limited partners this, but you have to pay it back before you start taking a cut of the profits. That means I have a total budget of a little over $200,000 to run the entire operations of Brooklyn Bridge Ventures. I hear that partners can make $300,000 on up to a million dollars at a big fund, and that''s before their cut of the upside. Venture Capital & Technology