Seed Is The New A – #PreMoney 2015 Talk

K9 Ventures

Seed Is The New A: What The Seed-Stage Explosion Means For Founders, GPs & LPs. The post Seed Is The New A – #PreMoney 2015 Talk appeared first on K9 Ventures. Founders Fundraising Opinion Venture Capital GP LP seed stage Series A Venture

Kindred Spirits – Our Investment In Founder Collective

Feld Thoughts

From those founders, we are aware that FC takes their mission “to be the most aligned fund to founders at the seed stage” very seriously. As an LP, I’ve had the good fortune to be an investor in many funds, including some exceptional ones.

Trending Sources

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’ve had two second seeds, 5+ Series A and one Series B from the investments we made during the fund’s first 12 mths. Comparing Notes About Market Trends: Although Homebrew is still young we’ve definitely seen some changes in the seed stage ecosystem since we started in early 2013.

LP 20

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

K9 Ventures

I’m pleased to announce the formation of K9 Ventures, L.P. – a seed-stage fund. K9 Ventures, L.P. is a $6.25M fund that is designed to do concept and seed-stage investments in technology companies. Capital Efficient : Companies that need a Seed round, probably a Series A, but potentially may not need a Series B or Series C. Twilio (Seed and Series A). HighlightCam (Seed). “Project Oscar” (Concept/Seed).

IP 3

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.

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.

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. We deeply believe that the way companies are created and funded, especially at the seed stage, is radically changing on a permanent basis. 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.

#PeakVC

K9 Ventures

Examples are tailored to the stage at which I/K9 play, but there is no difference even if you add a couple of zeros to those numbers). Not to mention that in later stages, high valuations can almost be fatal for some companies that don’t have the operating metrics to justify those valuations once the market turns. This means more noise in the system for seed stage investors. More companies get funded at the early stages.

Venture Outlook 2016

Both Sides of the Table

Our late-stage, privately held technology market is clearly in a bubble. I spoke last week at the annual Cendana VC/LP conference. So what we can say is that a whole lot of money is sloshing around in the late-stage tech ecosystem.

LP 149

How Do VCs Mitigate Risk In Their Investment Portfolios?

Ask The VC

Are VCs simply looking to diversify the type and stage of companies in which they invest, or do they employ other financial hedging strategies? In many cases, they are prohibited from doing this by their LP agreements and/or investment documents in the companies when they make an investment. Stage diversification: Some funds have an early stage and late stage investing approach. Question: How do VCs mitigate risk in their investment portfolios?

Why Was Winter in Venture Capital Funding so Short?

Both Sides of the Table

WINTER For starters when we conducted our annual VC & LP survey in December of 2016 to prepare our annual Upfront State of the VC Industry report we found that twice as many VCs cut their investments in 2016 relative to 2015 with > 30% of VCs having cut investments.

Seed Investing & Dark Dealflow: You Lose 100% Of The Deals You Don’t See

Hunter Walker

Folks outside of seed stage venture often think “winning” deals is the most important part of being a great investor, but I’d argue it’s “seeing” the best opportunities that’s actually the strongest indicator of future fund success.

Crowdfunding for start-ups: A durable trend or a bull market phenomenon?

Information Arbitrage

What started out as a way for a curated set of angels to invest in startups posting on the AngelList site has expanded to include the notion of Syndicates , investor groups headed by prominent angels who deploy capital pledged by themselves and others in a manner akin to a GP/LP construct. While we invest in partnership with angels in virtually every seed stage company we work with, we are generally the largest investor and lead the round.

Announcing NextView Ventures II

Rob Go

NextView Ventures II is $40M, twice the size of our first fund, and we continue to be exclusively focused on seed-stage companies pursuing internet-enabled innovation. We’ve often explained to entrepreneurs that the second fund of a venture firm is very much like the series A for an early stage company. For a seed stage venture capital firm, product/market fit comes down to two questions. First, the seed and early stage market continues to evolve.

The Changing Structure of the VC Industry

Both Sides of the Table

The rise of “micro VCs” or seed-stage funds. Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. ” The new narrative is “will my seed funds be able to fund the prorata of their winners?”

Beer Kegs and the Future of Venture Capital: What It Means for Entrepreneurs

Genuine VC

Large VC firms resemble Budweiser-type macrobrews, competing based on scale and brand with a standardized product across multiple geographies, sectors, and stages. And much like the emergence of microbreweries specializing in craft beer, new Micro VCs (disclosure: like my own firm NextView Ventures ) are thriving by specializing along at least one or more of these three dimensions (geo, sector, stage) with a unique offering for a specific subset of entrepreneurs.

A Beer Drinker's View of the Venture Industry

Genuine VC

These firms aim broadly – diverse along sector, geography, and stage lines. Perhaps a contrarian statement in this environment: but even though there’s been a dip in fund size due to broad economic factors and LP appetite, it wouldn’t surprise me if the truly top firms raise even larger funds over the coming decade. Just like beer drinkers in the 90’s, the best entrepreneurs will have an increasing amount of real choice for their seed-stage funding options.

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

Agile VC

How to Evaluate Firms for a Seed 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. As many of you know, NextView is a seed-stage VC fund. We make initial investments of $250-500K in the seed rounds of software and internet startups and reserve capital for follow-on rounds. I co-founded NextView Ventures , a seed-stage VC firm based in Boston, in 2010.

Back from the Dark Side

Venture Cyclist

Big Data Boston Ventures was conceived as a micro-VC fund that would invest in seed stage companies which fit into the big data theme. The LP community (those who invest in VC funds) are caught in a series of dynamics that mean they are just not interested in taking the kind of risks that such a fund might offer. I plan to stay in touch with early stage startups in big data, and especially in healthcare and life sciences.

The Authoritative Guide to Prorata Rights

Both Sides of the Table

They often create the biggest tensions between investors who are investing at different stages in the business. These tensions seep out in some angels or seed funds publicly or semi-privately deriding later-stage VCs for their “bad” behavior. I have seen bad behavior from later-stage VCs, believe me. But I have seen equally bad behavior from super early stage investors. Angels / seed want their full prorata.

LP 97

What to Expect When You're Expecting Venture Capital Returns

This is going to be BIG.

One of the first things I did when I joined the venture asset class as a lowly institutional LP analyst in 2001 was to build the VC fund cashflow model. so that's what I said my exits would be as a seed stage fund. Toss in a few acqui-hires in the $6-8mm post seed.

When Bad News Is Actually Good News

Babbling VC

For those of you not in the know, they are one of the largest limited partners ( LP's : investors in venture capital funds) in Europe and are basically in almost all the funds throughout the market. Guys like the Samwers have made a killing and if you look at what the Kleins are doing via Index and Seedcamp , you clearly see players at the seed end of the spectrum. Hypothesis 6: European VC managers are targeting the wrong investment stages .

LP 23

Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

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. Some have done earlier-stage deals and done well.

Why Email May Be Draining Your Company’s Productivity

Both Sides of the Table

Separately, in the morning I called a seed-stage investor in NY and talked to him about investing in one of my companies. I had lunch with an LP. Email. Ah, email. That great productivity drain that we somehow all buy into.

Email 67

Happy Birthday, RTP Ventures

Passionate Intensity

These investments included two seed stage investments and seven Series A deals. Importantly, we also did two later stage investments in Fab.com and RichRelevance. Ability to span the different stages of the VC funding timeline was an important thing I wanted to prove to myself.

What Do Investors Want? Imperious Group Investing In 30 Startups in 2 Years.

ArcticStartup

The investors are fighting for the best startups, working together on investing into them while pitching to LP''s to get more funding, just the way you pitch your startups to them. Editor''s note: This is a sponsored post for Imperious Group.

How to raise money with no lead

Venture Hacks

Should you have a board seat for seed investors? Does a small seed round need protective provisions? Before you raise a seed round, you need a product in the marketplace. What are the different types of seed stage investors? If you’re talking to a VC, make sure they really do seed stage rounds. Potential concerns with pitching multi-stage and seed-stage firms. Get intros to seed investors with AngelList/StartupList.

Jonathon Triest of Ludlow Ventures: “VC Done Right” (and in Detroit)

Hunter Walker

Despite the seemingly not so humble tagline (“VC Done Right”), I found him to be a ‘grow the pie’ guy who excitedly looks for opportunities to help entrepreneurs and collaborate at the seed stage.

Burnham's Beat: Why Convertible Debt Is A Sucker's Play

Burnham's Beat

There are some good posts going around today on the topic of using convertible debt in seed stage venture financings including one by my former colleague Seth Levin over at Foundry that is worth a look. And people who bring up the point “but the investors are getting debt which is safer than equity so they should be happy” haven’t wound down many seed stage start-ups. Burnhams Beat. Articles on Technology and Finance. About Bill. Archived Posts.

Fun Fact of The Week: Time from Inbox to Investment

Redeye VC

During the last few weeks there has been a lot of commentary about what’s going on in the seed funding markets. During this same time period I saw the movie Moneyball (liked it, thought the book was better) and my fund held our Annual LP meeting.

Some Thoughts on Communicating With Your Investors

Rob Go

Given that small institutional seed rounds are becoming more and more common, I thought I’d share a few of my thoughts on how to best communicate with investors. First, getting investors to commit to board involvement is a great way to make sure your VC is committed to your seed round (that is, if you have a large VC in your round). Of our 13 portfolio companies, 10 had/have formal boards during the seed stage, and the rest had a more informal structure. .

VCs in seed clothing: Chris Dixon, Mark Suster, and Naval Ravikant interviewed

Venture Hacks

The topic was VC signaling in seed rounds — and how these signals help or hurt your ability to raise money in the next round. SlideShare: VC signaling in seed rounds. Chris Dixon: The problem with taking seed money from big VCs. VC signaling in seed rounds.

A brief history of your investors (and their investors)

Venture Hacks

Angels invest their own money, VCs invest their LP’s. Recently, “seed stage” venture firms have emerged that have between one to three partners. These seed stage firms are usually backed by institutional limited partners or even by venture firms.

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

Both Sides of the Table

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%. And VC’s are doing earlier stage deals – And we all know that VCs are doing earlier stage deals.

Full Time Vs Part Time Angel Investors

Mark Birch

That means that I might move to being a full time angel investor, setting up my own seed stage fund taking on some LP’s, or getting more involved in an angel group to be more of a filter for quality deal flow and to have an instant network.

LP 1

OATV Fund III

Bryce Dot VC

When we set out to raise our first fund in 2005, we began a nearly two year journey involving enormous amounts of educating the market on what a seed fund was and why we felt there was such a compelling opportunity to build a new firm solely focused on this breed of cash efficient startups that make our model work. We’ve been deeply fortunate to have been able to catch the seed stage wave early and work with some of the most dynamic and thoughtful founders in our industry.

How to raise money with no lead

Venture Hacks

This post explains how to raise a seed round with no lead, no fixed amount, and a fluid closing date. Mass syndication is a single continuous seed round and I think it’s the state of the art in continuous fundraising. This interview explains how to raise a seed round with the conservative assumption that a lead won’t step forward — but it doesn’t preclude you from changing course if a lead appears. Should you have a board seat for seed investors?

Happy Birthday, RTP

Passionate Intensity

These investments included two seed stage investments and seven Series A deals. Importantly, we also did two later stage investments in Fab.com and RichRelevance. Ability to span the different stages of the VC funding timeline was an important thing I wanted to prove to myself. I did not want a portfolio of twenty early-stage seed deals one can find on Angel List. Exactly one year ago today, September 9, 2011, RTP Ventures officially got started.

Alternative To Company Valuation For Startups

ArcticStartup

One suggestion that has gained ground in the USA, and which business angels in the Nordics would do well in examining closer, is simply to avoid the discussion of company valuation during the seed stage altogether.

Don't Kill the VC Golden Goose! Why Raising Taxes on Carried.

VCball

A New York based VCs quixotic search for new knowledge in early stage venture capital and entrepreneurship. And while you might think that every VC is wealthy and should be taxed to the hilt, it’s a little known fact that about half of all early stage VCs lose money—these are the VCs that are the most important ones to our economic well being, the ones that do the earliest, riskiest and hardest stage investing. Yep, seed stage ones. VCball.