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Feld Thoughts
JUNE 5, 2018
9 Questions That Help Get You To GP/LP Fit. In it, Beezer goes through, in depth, the top questions she recommends you ask an LP to determine GP/LP fit. There’s an interesting graph in the post, which shows that a typical LP is going to add less than five new managers a year to their portfolio (and, on average, only two or three.) While an LP takes a lot of meetings, they don’t do a lot of investments.
View from Seed
JANUARY 13, 2021
Not that there is anything wrong with being a later stage investor, but the LP’s wanted to believe that if they were drinking the seed fund kool-aid, that the kool-aid salesman actually believed that it was the best drink. This year will mark the 10 th year anniversary of NextView.
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Hunter Walker
MAY 7, 2015
Last week Homebrew held its second annual LP meeting, coinciding with our second anniversary as a fund. We invite several of the founder teams to present at the LP meeting discussion and all of our founders and advisors to a dinner. The agenda was very similar to 2014’s, which I discussed last year in this post.
K9 Ventures
AUGUST 14, 2017
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., It was a conscious decision to maintain the fund size at the same level, despite both market pressure (larger rounds at earlier stages) and demand pressure (lots of LP money entering the stage) to raise a larger fund. The post Announcing K9 Ventures III, L.P. 42: The Answer to the ultimate fund size?
This is going to be BIG.
JANUARY 15, 2020
thebarefootvc
JULY 3, 2017
The post The LP Opportunity to Change Tech Culture appeared first on The Barefoot VC. Over the past month, Silicon Valley has been at the forefront of many conversations outside of the technology world. Unfortunately not for groundbreaking technology, but for rampant sexual harassment and predatory behavior. The stories outlined by a number of brave women in the NY Times last week recount investors using their power and position to proposition female founders.
This is going to be BIG.
OCTOBER 5, 2012
I know how hard it is myself because I used to vet VCs for a living when I was on the insitituional LP side. Picture this: Your family builds a tremendous business in Nebraska over four generations making black socks. You make more black socks for more people in the western world than anyone. The next generation isn't interested in socks. One daughter is touring nationally with her punk band. The son is off in Africa combating disease with Doctors without Borders, and the other son.
Hunter Walker
APRIL 27, 2014
Last week we held our first annual LP meeting, when venture funds get their investors together with updates on operations and results. We brief our major investors quarterly and decided to model our LP meeting after what “big funds” do, albeit with a few Homebrew flourishes :) Logistically this meant an afternoon session with presentations/Q&A then a dinner with founders/advisors.
Hunter Walker
MAY 18, 2015
Satya and I approached fundraising for Homebrew as if we were building a company, asking ourselves who were the investors that would give us a solid platform, who were aligned with our values and where we learn from them. Over the first two funds we’ve ended up with just that – a group of LPs representing college endowments, foundations and fund of funds who are committed to us and the early stage venture segment. .
BeyondVC
JUNE 29, 2005
Every year the Dow Jones Private Equity Analyst puts together a show where fund managers can listen to what the LP community is interested in and where they plan on allocating their dollars. In the early morning, a show of hands revealed about a 20% LP audience and 80% fund manager group. The post LP Conference appeared first on BeyondVC.
K9 Ventures
APRIL 28, 2010
I’m pleased to announce the formation of K9 Ventures, L.P. K9 Ventures, L.P. – a seed-stage fund. is a $6.25M fund that is designed to do concept and seed-stage investments in technology companies. The fund will be deployed over a period of 3-4 years, with initial investment in the range of $100K – $250K, while reserving capital to participate in the follow-on round.
Feld Thoughts
AUGUST 13, 2018
We feel that if an LP gives us a $1 to invest, we should invest at least that $1, not $0.85 (the average fee load over a decade for a typical VC fund is 15%.) Our goal for each fund is actually to invest closer to 110%, which means if an LP gives us a $1 to invest, we are actually investing $1.10. Our long-time friends and LPs at Greenspring recently wrote a great post titled Creating GP-LP Alignment: Why Terms Matter. Venture Capital GP LP managing fee recycling
This is going to be BIG.
SEPTEMBER 19, 2012
In the early spring of 2009, the fundraising nuclear winter of the previous year hadn't yet thawed. It would be months before Foursquare's first round touched off a NYC venture frenzy. I was out trying to save my startup by talking to as many investors as I could. One particular investor pass--from someone we thought we had a good shot with--felt like a punch in the the stomach. Many of you entrepreneurs know that feeling.
Feld Thoughts
JULY 6, 2016
This prompted me to poke around for other content from the limited partner (LP) side of the LP/VC/entrepreneurship universe. I think the first LP blogger was Chris Douvos who periodically puts up an instant classic post at Super LP. 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. As I continued poking around, I found a few LP firms hosting blogs on their websites.
Both Sides of the Table
MARCH 6, 2017
I know most startups (or even VCs) tend not to think about this but when you ask LPs the data are clear: Another trend we’ve noticed in LP opinions is regarding seed funds. So … Not a single LP surveyed said Trump was the right leader for the United States and a clear 71% said they disliked Trump, were anti-Trump or were “deeply offended” by Trump.
Feld Thoughts
JULY 9, 2011
On my run today I was thinking about GP – LP interactions. I didn’t know the person, but knew a few people who did, and quickly sent emails getting addition info for my LP. I was also able to get some specific one degree of separation feedback for my LP. I’m an investor in about 30 VC funds (so, in addition to being a GP in my funds, I’m an LP in a bunch of other funds.) I tried to come up with a rationale for blowing off an LP.
Feld Thoughts
MARCH 24, 2017
As an LP, I’ve had the good fortune to be an investor in many funds, including some exceptional ones. As a GP I applauded the approach and accepted that as an LP we had to beg and plead our way into to the fund. Investments fg next founder collective LP
K9 Ventures
JUNE 18, 2015
Founders Fundraising Opinion Venture Capital GP LP seed stage Series A VentureHere is the video recording of the talk I gave at 500 Startups ‘ PreMoney Conference in San Francisco on 12 June. . Seed Is The New A: What The Seed-Stage Explosion Means For Founders, GPs & LPs. And the deck from my talk. Thanks to 500 Startups #PreMoney. As always I welcome your thoughts and feedback.
SiliconHills
JULY 24, 2021
Capstar Ventures L.P., Capstar raised the fund from individuals, family offices, and institutions including Capital Creek Partners, Tiger Partners L.P., an early-stage venture capital firm, announced last week that it has closed on its $41.3 million inaugural fund.
Agile VC
FEBRUARY 21, 2012
We recently completed the final close of NextView Ventures, LP and we’re excited about both our progress to date and our plans for the future. These include many of our colleagues in the VC industry, folks from our prior firms, and a handful of people in the LP community who offered constructive guidance. How to Evaluate Firms for a Seed VC. How To Think About The Future. About Me. AGILEVC My idle thoughts on tech startups.
Both Sides of the Table
JUNE 22, 2021
I counsel first-time VCs (as well as founders) to have mid-funnel strategies to get from first LP meeting to close and to put a disproportionate amount of time into this area (I say more about this on the podcast starting at timecode 27:41).
View from Seed
SEPTEMBER 23, 2020
Every fund pitching an LP is pitching this as a baseline. And yet, LP’s get to “yes” in a few cases and get to “no” in most cases. In addition to thinking about the LP overall, it’s important to think about the decision-maker.
View from Seed
JANUARY 27, 2021
As a small fund, NextView has a tight-knit LP base, many of whom have been with us from our earliest days. But we also recognize that venture capital is a tough bet as an LP -with long time horizons, lack of liquidity, and uncertain outcomes.
Version One Ventures
SEPTEMBER 22, 2021
Note: TVPI stands for total value of investments net of fees / invested capital; DPI stands for distributions (= cash to LP’s) / invested capital).
View from Seed
OCTOBER 29, 2014
The nature of LP investors can vary widely, but the bulk of the capital in the VC ecosystem comes from large institutions like pension funds, endowments of universities and hospitals, charitable foundations, insurance companies, very wealthy families (aka family offices), and corporations. Advisory can mean a great many things in the VC LP world — there are lots of flavors of “advisory” firms.
View from Seed
DECEMBER 4, 2019
Typically, when an LP makes a commitment to a new VC relationship, they are expecting to stay with that group for at least 2-3 funds. LP Constraints. This allows the LP to deploy more cash into whatever asset class they want.
Both Sides of the Table
SEPTEMBER 14, 2016
And we felt terrible not being able to let every LP in but we were forced to make some hard compromises yet we opened up our fund to Sapphire even though they were a first time LP. Truly Focused on VC / Knowledgeable About How Partnerships Work One of the things I value in an LP is a really passionate and inside knowledge of the venture capital industry. We have many LPs who come from industry and this is truly a value-add in a LP/VC relationship 3.
Both Sides of the Table
MAY 24, 2021
LPs Haven’t Yet Grokked the Long Game While the VC community realized 5ish years ago that short-termism in venture capital didn’t make sense and has capitalized on the scale advantages of letting companies go long, the LP community by and large hasn’t totally grokked this.
Feld Thoughts
AUGUST 13, 2020
” I knew Austin from his time at TenOneTen Ventures (we are an LP) and I reconnected with him when he joined the Kauffman Fellows Program (Class 25). Amy and I, through our Anchor Point Foundation , are supporting the Grid110 – South LA program.
Both Sides of the Table
MAY 6, 2015
Most importantly – this should encourage LP funds to back more local firms and I would hope to see more indigenous funds to develop. There are so many great, young funds in the market and many of them are attracting LP capital. If you’re an LP and want to know who these emerging funds are please call me and/or attend our Annual VC Summit.
Professor VC
NOVEMBER 19, 2009
I attended the annual LP meeting for a venture capital firm this week and got into a discussion about the above question. ProfessorVC. The last blogger in Silicon Valley. Thursday, November 19, 2009. Can Entrepreneurship Be Taught? Seems like a good question to ponder given that I spend several hours each week as a professor of Entrepreneurship. At a high level, I definitely agree that being an entrepreneur and being in school dont necessarily mix.
Version One Ventures
MARCH 8, 2020
In fact, one of our LP’s approached us with the idea of anchoring such a fund and the feedback from our other investors has been incredibly supportive.
SiliconHills
JUNE 4, 2019
led the round of funding, which also included participation from existing investors Causeway Media Partners, LP, Fertitta Capital, and DCM Ventures, as well as strategic investors World Wrestling Entertainment, Inc. FloSports, live digital sports media company, this week announced it has closed $47 million in new funding. Current investor Discovery Inc.
Agile VC
OCTOBER 29, 2014
The nature of LP investors can vary widely, but the bulk of the capital in the VC ecosystem comes from large institutions like pension funds, endowments of universities and hospitals, charitable foundations, insurance companies, very wealthy families (aka family offices), and corporations. Advisory can mean a great many things in the VC LP world — there are lots of flavors of “advisory” firms.
Feld Thoughts
DECEMBER 12, 2019
As an LP in USV, we are small indirect investors. My partners at Foundry Group have decided to bring the Helium Network to Boulder. We’ve ordered 50 hotspots and, with your help, will set up a LongFi network throughout Boulder. If you are asking, “What’s Helium?”
Feld Thoughts
OCTOBER 15, 2016
Does Lindel agree with Chris Douvos in stating this could lead to the ‘hybridisation of GP and LP’? What are the biggest problems with the LP community today? My partner Lindel Eakman just did a really fun interview with Harry Stebbings on Harry’s 20 Minute VC Podcast. You can listen to it here or subscribe to the 20 Minute VC on iTunes. As a Saturday bonus, two of the other podcasts in my regular rotation are the Reboot Podcast and How I Built This.
Both Sides of the Table
FEBRUARY 26, 2014
But for now … Every year we run a big VC, LP & Tech Summit in Los Angeles (this year downtown) to showcase the best of our community and invite others from around the country. You disappeared? What the fork happened to you? And what’s up with this crazy new blog design? Well … more on that next week. I will tell more.
David Teten
JANUARY 23, 2021
For example, one LP told me she prefers customized emails from fund principals, as opposed to a bulk-mailed quarterly update. An LP’s View On Challenges And Alternatives. See How Emerging Venture Capital Fund Managers Should Think About Their LP Fundraising Strategies.
Haystack
JUNE 1, 2018
Perhaps because of this success and the unique elbow grease they supply to their portfolio, it was shocking to many to see that one of the storied seed franchises would contract, become its own sole LP, and scale back its operations. A well-networked LP recently remarked to me they’ve estimated over 150+ of the 500+ known seed funds are currently “in market” right now.
ithacaVC
DECEMBER 14, 2011
Specifically, “too much” liquidation preference (I will use “LP” for liquidation preference). As most of you probably know, LP is one of the fundamental economic attributes of preferred stock that preferred shareholders enjoy. Rather, preferred stock has the right upon a liquidation event to get its money back (a 1X LP) or, sometimes, a multiple of its money back (for example a 2X LP). Is the $13mm of aggregate LP a problem?
Hunter Walker
MARCH 28, 2018
And why a LP should give them theirs. “We invest in rebellious outliers.” ” “We invest in the Future of Work.” ” “We invest in frontier technologies.” ” “We invest in diverse founders.” ” “We invest with social good in mind.” ” I hear, read, see examples every day of investors espousing differentiated theses with regards to why they exist. Why a founder should take their dollars.
Both Sides of the Table
MARCH 1, 2016
While I’m not an LP, the following post represents my discussions with more than 100 LP firms – specifically ones that do fund VCs – and full survey data from 73 firms , so I’ve tried to capture the essence of what I’ve learned. In our poll of 73 LP funds, we saw only 7% who felt they were overweight in venture given the current market climate, versus 22% of the firms who are actually looking to grow their dollars in venture.
Babbling VC
NOVEMBER 2, 2018
The same goes for the LP's (limited partners) that invest in venture funds. If a fund has run it's course and can't raise further capital due to poor performance, the LP's walk away. It just doesn't interest LP's anymore. 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.
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