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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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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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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

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.

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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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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.

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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.

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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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.

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.

IP 3

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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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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Fun LP Meeting

Florida Venture Blog

Inflexion had our Limited Partner (LP) Meeting tonight and it was a good one. lp entrepreneur inflexionHearing all of our entrepreneurs share their stories reminded me how much I enjoy building companies with these visionaries and how much I appreciate the LPs who make it all possible. Onward and upward. Let's get to know each other, Join FVB , my venture capital blog community!

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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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.

"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

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?

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

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.

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.

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Reserves

A VC : Venture Capital and Technology

That means if your company raised money from USV 2004, LP (the name of our first fund, a $125mm fund), it will be hard for us to invest in your company out of USV 2008, LP (the name of our second fund, a ~$150mm fund). Reserves is the term VCs use to describe funds they “reserve” for follow-on financings of their portfolio companies.

Our 2016 Foundry Group Fund and A Little History

Feld Thoughts

Yesterday we closed our fifth fund, Foundry Venture Capital 2016, L.P. As with all four of our other funds, it’s a $225 million fund. In 2007 we raised our first fund – Foundry Venture Capital 2007.

The Full Dataset on What VCs are Thinking About Funding in 2016

Both Sides of the Table

Up next I’ll publish all of the LP (people who invest in VCs) data we gathered and what we believe this signifies. Every year at Upfront we try to analyze the venture markets. We try to look at the sources of capital, the valuations, exits and trends.

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What Do Industry Insiders Think Will Happen in VC in 2016?

Both Sides of the Table

” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. We surveyed 73 LP firms to get their views on the market.

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Why VCs Should Recycle Their Management Fees

Feld Thoughts

That means that if an LP invests $1 in the fund, they get back $3 over time. I’m an investor in a bunch of VC funds. Some of them recycle their management fees; others don’t. I’ve never really understood why funds don’t recycle their management fees.

Foundry Group on The Twenty Minute VC

Feld Thoughts

20VC: WHY MANY VCS FAIL TO RAISE, WHY LP COMPENSATION IS A MASSIVE PROBLEM & WHY FUND OF FUNDS WILL BECOME MORE PROMINENT WITH LINDEL EAKMAN, MANAGING DIRECTOR @ FOUNDRY GROUP. I’ve become a huge fan of Harry Stebbings, the intrepid entrepreneur turned VC whose age (20) matches the title of his podcast ( The Twenty Minute VC.) Today, at SaaStr at 1:40pm in the Hypercritical section , Harry is interviewing me about – well – whatever he wants.

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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.

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Interesting Tech / VC Stuff To Read on 4/10/14

Feld Thoughts

Venture funding goes ballistic: VCJ : Some people are starting to call the top of the current cycle, at least in the context of flows of LP funds into VC firms. We had our LP Annual Meeting yesterday and I had a vibrant conversation with a few of our LPs about this topic at lunch. I’m bouncing around between a bunch of stuff and have a two board meeting day so I thought I’d just toss up a few interesting things I read this morning along with my thoughts.

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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.

Here are The Missing Positives of This Election

Both Sides of the Table

When I went to add partners at Upfront I called an LP of mine and told him I was trying to recruit a new partner named Kara Nortman. I shot back quickly at my LP “ You’re kidding me, right? It’s hard to feel any positives these days: We’re in the eye of the storm. We’re at peak anxiety.

Why VC’s Don’t “Crossover” Invest

Agile VC

If Acme Ventures III, LP invests in Startup X then typically Acme Ventures IV, LP would not. 1) LP Bases Change Over Time – Most healthy VC firms tend to have stable relationships with the limited partners investing with them.

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Embracing Your Community as a Strategy

Both Sides of the Table

I told him that I had observed every LP on their computers doing email and that clearly they were bored, to which he replied, “We like boring Powerpoint presentations. And the more LP money that would pour into LA the better for the entire ecosystem.

Why 2017 Should be a Great Year to Raise Venture Capital

Both Sides of the Table

Below is the full deck with a lot more data and insights and if you missed the recently published LP Survey Results you can find them here. Recently Upfront Ventures published its outlook for the technology startup world and venture capital overall titled it “ WTF Happened to Winter ?”

Why Successful People Focus on the Bottom End of the Funnel

Both Sides of the Table

I’ve met many VCs who take fund raising meetings with lots of LPs but struggle to get traction and I believe often the problem is that first meetings are easy but the 28 steps to get each LP to closure take an insane amount of focus, effort, follow through and discipline.

LP 155

If You Don’t Respect Your Customers You Won’t Be Successful

Both Sides of the Table

He was lamenting how much he hated LP meetings and how little he wanted to interact with LPs going forward. I even once met with one very, very well known VC who told me, “I don’t attend LP meetings. I spend a lot of time with startups and thus hear many companies talk about their approach to sales and their interactions with customers. From these meetings you can really tell the leaders that care deeply about their customers and those the look down on them.

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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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What Everyone Should Take Away from Twitter’s 8% Staff Reductions

Both Sides of the Table

I spoke at Michael Kim’s excellent annual Cendana VC/LP conference today. Today Twitter announced it had laid off around 336 jobs or 8% of its workforce. Nobody should celebrate, cheer or shout, “it’s about time.”

The Experience of Being a Limited Partner in Venture Capital

This is going to be BIG.

Rather than see LP interactions as a chore or a burden, new fund managers should see this as an opportunity to extend the community around their fund. The GP-LP relationship shouldn't be so one dimensional around returns, and I would argue that, in the seed stage, it's sub-optimal. Just yesterday, I walked out of breakfast with an LP of mine with three or four meaningful introduction offers from this LP who ran a public company for 30 years.

What to Make of Andreessen Horowitz’s Returns?

Both Sides of the Table

What’s an LP to do in deciding which funds to invest in? Rolf Winkler wrote a piece in the WSJ about A16Z’s returns in which he says they “lag behind Sequoia, Benchmark and Founders Fund.”

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The Paradox of VC Value-Add

Feld Thoughts

We had a blast together and as we went out to raise our Foundry 2007 fund, Scott made several introductions which resulted in two wonderful, long term LP relationships. Scott Maxwell of OpenView Partners had an awesome post up this morning titled The Truth About VC Value-Add. Go read it – I’ll still be here when you get back. You may recognize Scott’s name – I wrote about him in my post When VCs Don’t B t You.