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What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

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%.

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

Both Sides of the Table

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. …But LPs Have Been Putting Out More Money Than They Are Getting Back. That’s money that fuels our startup ecosystems.

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The Changing Structure of the VC Industry

Both Sides of the Table

The rise of “micro VCs” or seed-stage funds. At the other end of the spectrum large funds have gotten even larger in the past few years which has massively increased the amount of consolidation in our industry as 66% of LP money into venture is now concentrated in late-stage or full-cycle VCs. Why is this?

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Does Your VC have an Investment Thesis, or a Hypothesis?

David Teten

A typical VC thesis: “we invest in tech startups in Europe at an early stage” However, our experience shows that in many cases: . Thirty-four VC firms in OpenVC call themselves “early-stage” Yet, 30% of those don’t actually invest in pre-revenue startups. The phrase is quite ambiguous.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.

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Off to the Races with Team Nextview

View from Seed

At the seed stage and as companies scale, helping the founders I work with identify and reach their goals, personally and professionally, gives me energy and purpose. And I’ve been fortunate enough to witness their startups scale from ideas to $1B+ businesses (and even an IPO in the case of Poshmark).

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Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

This led to an explosion in startups. Amazon in turn led to the formation of an earlier stage of venture capital now led by what I call “micro VCs&# who typically invest $250-500k in companies rather than the $5-7 million that VCs used to invest. The LP Community Hasn’t Yet Caught Up. I think some will do this.