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.

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What’s An LP Meeting Like?

Ask The VC

Hunter Walk, one of the two founders of Homebrew , a VC firm started in 2013, just wrote a great post about Homebrew’s first LP meeting. So – if you want to learn what a VC annual meeting is like, go read Investors Updating Their Investors: Inside Homebrew’s First Annual LP Meeting

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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.

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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.

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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., The post Announcing K9 Ventures III, L.P. 42: The Answer to the ultimate fund size?

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"Today’s LP environment remains committed to buying mostly the same products they’ve been."

Mark Birch

“Today’s LP environment remains committed to buying mostly the same products they’ve been buying for 15 years, almost irrespective of recent performance or an honest assessment of likely future performance.” - “ The VC Industry Is Very, Very Screwed Up ” by Brad Svrluga. VC Venture Capital LP investments

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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. Our seed fund Homebrew celebrated its first birthday yesterday, meaning we’re still in diapers but walking tall.

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Kernel column: The LP update meeting

The Equity Kicker

The LP Update Meeting. We have around a dozen LP update meetings a year across our four funds and they are the most important moments of contact we have with our investors. My latest column for The Kernel. It was published last Thursday. Everybody answers to somebody, Nic Brisbourne reminds us. What happens when VCs are hauled into the boardroom to justify their investment decisions?

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Top Ten Limited Partner (LP) Lies

Florida Venture Blog

This time it's the Top Ten LP Lies. 10: We don't invest in first or second funds, see #1 9: We have committed this years allocation 8: We don't believe in this asset category unless we can get into Sequoia 7: My committee would never let me do a deal outside of the valley 6: Our diligence is very deep (bottomless unless you are about to close and any of my close LP friends are in) Check out Paul's blog for the top 5. paulkedrosky lp vcfaq vc 2.0

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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.

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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.

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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.

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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

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.

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Fred Wilson on Reserves

Ask The VC

Fund Terms gp lp reserves vcFred Wilson has a spectacular post up on how VC funds should think about reserves. It’s even more valuable to entrepreneurs so they can understand how the best VCs think about reserves, giving the entrepreneurs ammunition to ask their investors how they are thinking about reserves. I only noticed one thing missing from Fred’s post which is a statement about cashflow which I commented on. “Fred – phenomenal.

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One Of Our Investors Just Closed Shop. What Should We Do?

Ask The VC

This is compounded by the complexity of VC / LP relationships, private company dynamics, and the optimism of many investors that “something good will come in the future”, more formally known as “maintaining option value.” ” Fund Terms fund gp liquidation lp vc fundQ: What is the best path to take if a VC which has invested in my company closes down, but we have not exited and are still operating profitably ?

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Bull City Venture Partners III, L.P.

Southeast VC

We are really excited to announce the closing of Bull City Venture Partners III, a $26 million venture capital fund. David and I sincerely appreciate the commitment from all of our LPs and the overwhelming support from the entreprenurial community.    Now, more than ever, we believe there is a big opportunity in front of us. The region we serve has less capital than in the past. However, the level of activity in entrepreneurship has never been stronger.

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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.

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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 40

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.

One Of Our Investors Just Closed Shop. What Should We Do?

Ask The VC

This is compounded by the complexity of VC / LP relationships, private company dynamics, and the optimism of many investors that “something good will come in the future”, more formally known as “maintaining option value.” ” fund gp liquidation lp vc fund Q: What is the best path to take if a VC which has invested in my company closes down, but we have not exited and are still operating profitably ?

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Investor Friendly Terms

A VC : Venture Capital and Technology

As the Internet bubble neared its pinnacle in late 1999, that firm came to the LP and told them that they were raising the carry from 20% to 30%. The LP, who had been supporting this firm for twenty years, was not comfortable with this hike in carry, but held their nose and went along with it. ” To which the LP retorted “Not really. ” That was the end of that LP/VC relationship.

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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.

Debunking a Small VC Myth by @bryce

Mark Birch

VC investor myth debunk partners GP LP memeDebunking a Small VC Myth by @bryce : caterpillarcowboy : brycedotvc : There’s a small myth in startupland that goes something like this: VCs invest other people’s money, Angels invest their own money. It often surfaces under the auspices that VCs have an emotional or financial distance from their portfolio companies as they are simply managers of other people’s….

How Does the Mortgage Meltdown Affect VCs?

Florida Venture Blog

5) However, as public equities drop in value, the relative percentage of an LP's pool in venture capital grows even if VC valuations do not change -- putting some LPs over-allocated in venture capital. Weird huh: as public securities perform poorly, LP allocation rules can actually discourage investing in a better performing category like VC. lp square1 svb market to market vcfaq mortgage meltdown

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. We have many LPs who come from industry and this is truly a value-add in a LP/VC relationship 3.

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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?

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.

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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.”

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.

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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.

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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.

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I’m a VC and the Worst of Times

Feld Thoughts

Maybe the next one will be called “I’m an LP.” It’s Sunday and it’s -8 degrees in Boulder. Egads. As I sat in my warm office catching up on email from the week, I sent links to our Foundry Group videos to a friend that had never seen them.

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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.

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.

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This Week’s Featured Product Management Jobs (Week of June 28, 2014)

The Product Guy

Product Manager – Content Platforms, Bloomberg Content Service @ Bloomberg LP (New York) Keywords: content, identify, licensing, management, technical [link]. Product Operations Manager – Bloomberg Media @ Bloomberg LP (New York) Keywords: analytical, digital, organizational, project [link]. Director of User Experience and New Platforms @ Viacom (New York City) Keywords: Product, UX [link].

LP 40

Where Does Foundry Group Invest?

Feld Thoughts

While I don’t have portfolio level stats for them, their new endeavor Foundry Next (to invest in smaller funds and then follow-on into key investments) has built up an LP basket of 23 positions in a variety of new VC funds.

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.

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Raouf: Should You Care About Your VC’s Investors?

Ask The VC

VC firm stability : Is the LP base stable, or is there significant turnover in LPs from fund to fund? Is there LP concentration, which would increase the risk of turnover? Are the LP funds stable enough to continue funding the VC over time? Firas Raouf from OpenView Partners has today’s VC Post of the day up titled Should You Care About Your VC’s Investors?

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When Brad Met Manu

Feld Thoughts

We are proud to be an LP in Manu Kumar’s third fund. My partner Lindel just put a post up on the Foundry Group website about our investment in K9 Ventures. I’ve been friends with Manu since 2009 and an investor (personally) in his first two funds. I vividly remember the first time we met – we were both sitting on the floor in the back corner at the fbFund Demo Day at the Facebook office in downtown Palo Alto. A number of interesting companies were presented. I adore Manu.

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