Both Sides of the Table
DECEMBER 7, 2014
We were talking about raising money from LPs. He was lamenting how much he hated LP meetings and how little he wanted to interact with LPs going forward. As an insider I can tell you that a large portion of VCs don’t like interacting with LPs – they view it as a “necessary evil” of the business.
Both Sides of the Table
MAY 23, 2012
Thomson Reuters data shows that around $10 billion of LP money went into VCs per year pre bubble. By 2000 the total LP commitments had mushroomed to more than $100 billion. LP contributions to VC firms shrunk from 2000 and by 2005-2008 had stabilized to around $30 billion per year. The Funding Problem.
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Both Sides of the Table
JULY 16, 2010
Consumers pulled their money out of these risky investments, but when LPs make commitments to VC funds they make 10-year, legally binding commitments. So as of 2008 total LP commitments were still at nearly $250 billion. I was at dinner with a large LP and mentioned that I had heard the industry would shrink by 50%.
View from Seed
DECEMBER 4, 2019
One way to think about this is how quickly LPs expect to get their capital back from a VC commitment. 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. Most LPs are trying to manage some targeted asset allocation.
Both Sides of the Table
MARCH 24, 2014
Getting Exits / Driving LP Returns: This was always the knock on me. I’ve now been involved with many other successful foll0w-on financings. So I think it’s now fair to rate me at 9/10 on follow-on fundings. The monkey on my back. “Ok, so this guy can write a blog and source deals but can he make any money?”
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. Sure, you assume that this money has vetted the basic skills--but how accurately is a family that made its money in socks or mining or whathaveyou going to determine such a thing?
Both Sides of the Table
MAY 27, 2013
Any CEO worth his or her salt knows that her investors get an insane amount of emails and often spend 8+ hours / day in meetings (board meetings, pitches, partner meetings, LP meetings, corporate relationship meetings) so often email is done on the run on one’s iPhone or in the early morning / late evening.
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