GP/LP Fit

Feld Thoughts

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.

LP 92

The Easiest Way to Bring Diversity to Venture Capital: Raise the SEC's LP Count Limit

This is going to be BIG.

LP 68

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Homebrew’s Second Annual LP Meeting: Why We Do Them

Hunter Walker

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.

LP 88

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., 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?

LP 80

The LP Opportunity to Change Tech Culture

thebarefootvc

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.

LP 57

Ending the Toll Roads to LP Fundraising

This is going to be BIG.

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.

LP 72

Investors Updating Their Investors: Inside Homebrew’s First Annual LP Meeting

Hunter Walker

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.

LP 100

Who Invests In Investors: Homebrew LP Shares VC Performance Goals, Importance of Diversity & What They Look For In New Funds

Hunter Walker

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. .

LP 102

LP Conference

BeyondVC

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.

LP 60

The Economics of VCs Recycling Management Fees

Feld Thoughts

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

What I did on my summer vacation: The First LP Close ($3.5mm) of Brooklyn Bridge Ventures

This is going to be BIG.

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.

LP 91

Announcing K9 Ventures, L.P. – a seed stage fund

K9 Ventures

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.

LP 58

Content From LPs

Feld Thoughts

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.

LP 99

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

Both Sides of the Table

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.

LP 253

Kindred Spirits – Our Investment In Founder Collective

Feld Thoughts

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

Dear GP: Why Are You Blowing Me Off?

Feld Thoughts

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.

LP 114

Seed Is The New A – #PreMoney 2015 Talk

K9 Ventures

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.

Final Close: The Story Behind NextView's Own Fundraise ? AGILEVC

Agile VC

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.

LP 100

What Do Your Customers Want to Buy?

View from Seed

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.

How Do VCs Choose Their Investors (and should entrepreneurs care?)

Both Sides of the Table

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.

LP 248

Where Does VC Money Actually Come From? [Flowchart]

View from Seed

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.

LP 263

Supporting Grid110 – South LA

Feld Thoughts

” 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.

How is the VC Asset Class Doing?

View from Seed

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. I’ve heard one LP heuristic that the capital returned from the first commitment to a new fund should pay for the investment in the fourth fund by the time that comes around. So, an LP in this fund would probably have to make a decision on whether or not to keep investing with the firm before they have the principal back from their original investment.

LP 166

Kara Nortman Was Just Promoted to Co-Managing Partner at Upfront Ventures. Here’s What it All Means

Both Sides of the Table

I called an (ex) LP to tell him about her and my goals for her. Today we’re announcing that my partner Kara Nortman is becoming Co-Managing Partner at Upfront Ventures and I can’t tell you how thrilled I am to welcome her to her new role.

A Slow, Painless Death

Babbling VC

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.

LP 144

Here is The Best Data You’ll Find on the LA Tech Market

Both Sides of the Table

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.

LP 256

ProfessorVC: Can Entrepreneurship Be Taught?

Professor VC

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.

FloSports Lands $47 Million in Venture Capital Funding

SiliconHills

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.

LP 53

Podcast Saturday – Meet Lindel Eakman

Feld Thoughts

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.

LP 110

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

Agile VC

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.

Announcing the Version One Opportunity Fund

Version One Ventures

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. It has been almost 10 years since Union Square Ventures launched the first Opportunity Fund , creating a strategy that has since been copied by many other VC’s.

Bringing The Helium Network to Boulder

Feld Thoughts

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?” ” here’s a fun video to get you started along with a deeper explanation of the technology.

An Interview with Notation Capital about Starting VC Funds

Feld Thoughts

Their podcast series is called Origins and is unique among podcasts as they go deep into the formation history of venture funds, especially from an LP perspective. Last month I had dinner at Pizzeria Locale in Boulder and did a long interview with Nick Chirls and Alex Lines of Notation Capital for their podcast. Dinner was about them and as they learned, if you trek out to Boulder, dinner is on me.

LP 138

The VC Twilight Zone

Haystack

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.

LP 97

A Sneak Peak at Some LA Startup Energy

Both Sides of the Table

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.

For VCs, Your Thesis Is Your Portfolio Page, Everything Else is Just Hopes and Dreams

Hunter Walker

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.

No Mess (Too Much Liquidation Preference)

ithacaVC

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?

High Functioning vs. Low Functioning Startup Boards

Both Sides of the Table

We then do a cocktail party so that everybody can have informal conversations (including LP to LP) and then we do a dinner in a private room at a restaurant. I’ve sat on many boards over the past 2 decades and seen my share of high-functioning boards and low-functioning boards.

LP 251

What Do LPs Think of the Venture Capital Markets for 2016?

Both Sides of the Table

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.

Failure to Execute vs Failure to Raise

Hunter Walker

I was thinking about this stat last month while preparing a slide deck for our annual LP meeting. 14 for 14. Homebrew’s first fund (2013-2015) has 20 core investments of which 14 went market for a Series A. All 14 successfully completed this fundraise.

LP 103

Academic Research on Accelerators

Feld Thoughts

I was asked if any existed the other day by an LP, so following is a list of papers I am familiar with. The first accelerator, YC, was founded in 2005. The second, Techstars, was founded in 2006. Wikipedia has a good summary of the history of accelerators. Now that we are 13 years into the accelerator journey, an accelerator is a well-established construct that is part of the global startup ecosystem. They have evolved over the years, and many new approaches have been taken.

LP 114

When VCs Don’t B t You

Feld Thoughts

In addition to being an incredibly supportive investor in us from the beginning, this LP has become an extremely close friend. As I was walking home after dinner, I thought about the person who had introduced us to this LP. This LP is also a long time investor in Union Square Ventures and was one of the first people Fred introduced us to when we started raising the first Foundry Group fund in 2007.

LP 152

What Is Your Next Career?

Feld Thoughts

” as part of a discussion with an LP. Upon reflection, the LP was clearly asking me indirectly about my long term commitment to venture capital and, without asking “how much longer are you going to do this VC thing?” I was recently asked the question “What is your next career?” I thought it was the best diligence question that I have ever been asked.

LP 102