Changes in the Venture Capital Funding Environment

Both Sides of the Table

There was an explosion in number of startups both because it was cheap and there was tons of available capital. Be thoughtful about from whom you raise capital.

Why 2017 Should be a Great Year to Raise Venture Capital

Both Sides of the Table

Recently Upfront Ventures published its outlook for the technology startup world and venture capital overall titled it “ WTF Happened to Winter ?” venture-capital startup

Trending Sources

It’s Morning in Venture Capital

Both Sides of the Table

Many observers of the venture capital industry have questioned whether its best days are behind it. They are, in fact, great news for traditional venture capitalists. The most successful of these businesses will still need venture capital to scale their businesses.

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. LPs Still Believe Strongly in Venture Capital as a Diverse Source of Returns.

Why Was Winter in Venture Capital Funding so Short?

Both Sides of the Table

It was only a year ago that many in the Venture Capital industry were predicting that “winter was coming” and to be fair the author of this post was chief amongst them. While this it total FDI as opposed to just venture, it should give you an indication of the international trend.

Why the LP Outlook is Good for Venture and Startups in 2017–2020

Both Sides of the Table

Every year Upfront Ventures surveys Limited Partners (LPs) who are the main source of capital that invests in VC funds and thus the main source of capital that goes to startups to get an early-warning sense of the year ahead, leaving aside any Black Swans.

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The LP Opportunity to Change Tech Culture

thebarefootvc

Just a week before, Justin Caldbeck, founder of Binary Capital , admitted to sexually harassing a number of women who were seeking investment from his fund. Binary Capital was dissolved within days by its investors once the extent of the allegations were revealed. Limited partners (LPs), who manage the capital that gets deployed into venture capital funds, can play an important role in diversifying the funding landscape.

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Why the Blockchain is so disruptive for venture capital

Version One Ventures

And so, we keep hearing how venture capital is about to be disrupted. Or you might even think about a tokenization of your own fund (so that LP shares are liquid). The post Why the Blockchain is so disruptive for venture capital appeared first on Version One. These days not a single meeting with a fellow VC goes by without talking about Blockchain and how to invest in this space. We are all a bit puzzled by how quickly this market has evolved.

Why The SBIC Doesn’t Work For Venture Capital Anymore

Feld Thoughts

On paper, only one is in positive return territory as a fund, but the SBIC leverage is a substantial negative factor for the LP investors in that particular fund. And, in the other two, I don’t expect to ever see any of my capital back because of the SBIC leverage. As a partner in one of the most visible VC firms in Colorado and an LP in many of the Colorado VC firms, I’ve never heard from Matthew or anyone from the SBIC. Venture Capital sbic VC

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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. And no, the numbers don't exactly add up--but they're more than close enough for venture capital.

The Trouble with Venture Capital Data

This is going to be BIG.

There aren't many people who get the chance to analyze venture capital fund return data. Mattermark just posted a short report full of such statements and the former 21 year old institutional LP analyst in me (the job I got my VC start in over 15 years ago) flipped his s**t upon close review. Analyzing venture returns without even looking at the 90's? Looking at interim IRRs of young funds, especially during boom periods in venture isn't predictive of outcomes.

On historical returns and venture capital flavours

Fred Destin

Story of of the last few years in Venture Fund Land : large institutional investors concentrate money with fewer managers and flagship brands AND / OR find emerging managers. So the LP's have done two things: Concentrate more money with fewer managers.

The Experience of Being a Limited Partner in Venture Capital

This is going to be BIG.

You run X amount of capital and Y percentage of that is allocated to venture capital. 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. Partnership investing is boring.

The Singularity hits Venture Capital (Wilson/Kauffman Redux)

Fred Destin

I mean, really, who still wants to be a venture capitalist ? Last week, we first got a new "bombshell" Kauffman report calling LP's out as being co-dependents for the terrible performance of VC, fundamentally complicit of the mess we are in (read Felix Salmon or watch Deirdre Bolton with Harold Bradley , Kauffman's CIO). And then we have Fred Wilson telling us that should venture capital die, there's always be blogging. The schizophreny of the venture capitalist.

Venture Capital: Practicing Blind Faith

Babbling VC

Venture capital in general, especially in Europe, is a practice in blind faith right now. The industry hasn't evolved, LP's are no longer interested and we're doomed. . I planned on making it more of a pep-talk since we constantly hear so much negativity in regards to European venture capital. There is a huge difference between optimism and blind faith. If you're an entrepreneur or in the VC space, you should know the difference.

The State of Cleantech Venture Capital: What Lies Ahead

Secret Formula

In late 2011 I decided to write up an internal analysis I’d done at Venrock about the state of cleantech venture capital and make it available broadly. What’s happening to cleantech venture capital? Philanthropic capital.

Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

Yesterday I wrote Part 1 of the series on the changes to the software industry over the past decade that has led to changes in the venture capital industry itself. Or at least venture-style returns. The LP Community Hasn’t Yet Caught Up.

The Great European Venture Capital Crisis

Fred Destin

The exercise of drawing up target list of investors has been a depressing one, for the European venture landscape is starting to look extremely depleted. We have three clearly dominant firms based out of London, in the form of Accel Partners, Balderton Capital and Index Ventures. European venture capital is out of favor with LP's. The wonderful White Beat Yard / Passion Capital initiative is one such example. Venture Capital *Notable Europe

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

Genuine VC

Last September I wrote a post outlining my view of the venture capital industry: increasingly evolving like the beer industry as it continues to mature. 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.

Seed Is The New A – #PreMoney 2015 Talk

K9 Ventures

You may also follow me on @Twitter at @ ManuKumar , and for all things @ K9Ventures K9 Ventures is also on Facebook and Google+. The post Seed Is The New A – #PreMoney 2015 Talk appeared first on K9 Ventures.

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. The team at Notation Capital is doing a really good podcast with interviews with LPs.

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. Follow-On Decisions Become Part of Agenda: Since a fund in Year Two is still in value creation, not harvest, mode, the trajectories of Year One investments is often more illuminating than recently funded ventures. We ran through five “headlines” about the state of venture capital and articulated which we thought impacted our strategy.

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The State of Cleantech Venture Capital, Part 4: Parting Thoughts

Secret Formula

This week we’ve analyzed the state of cleantech venture capital and used data to discern myth from reality. In summary, we’ve found that: There will be sufficient late-stage capital in the next few years to feed the ’06-’08 “baby boom” of cleantech start-ups, but there may be a corresponding dearth of Seed/Series A money. Cleantech venture capital investment only became substantial in 2006, and the average VC-backed start-up takes eight years from founding to exit.

Why VCs Should Recycle Their Management Fees

Feld Thoughts

Understanding what “recycling management fees” means is a fundamental part of understanding the economics of a venture firm. The advantage, for all the investors (the VCs and their LPs), is that $100m gets put to work as invested capital, rather than just $85m.

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. Fred Wilson at Union Square Ventures was by far the most helpful.

LP 108

Venture Capital, Pitching, and Business Love

Inc Startups

At an annual meeting of venture capitalists, a Morgan Stanley managing director gave five tips on how to pitch him. That was just some of the advice venture capitalists got at the last session of the National Venture Capital Association conference in San Francisco on Wednesday.

The Fantastical, Stupendous, Wonkariffic Tale of How Ample Hills Creamery Raised a $4 Million Venture Capital Round

This is going to be BIG.

It's a story that just hit a milestone--a $4mm round of venture funding that I'm ecstatic to say Brooklyn Bridge Ventures just led. But just because you could see them everywhere doesn't make them an obvious venture bet--nor does it tell the story of how the round even came to be.

Investing in Venture Capital - Limited Partner or Fund of Funds? - Part 2

Recent Buzzes - VC Experts, Inc.

By Igor Sill, Managing Director of Geneva Venture Management LLC. Venture capital enables and to a great extent, propels this entrepreneurial innovation. A top tier Venture Capital firm will utilize extensive analytical techniques to evaluate and compare each investment prospect.

The Paradox of VC Value-Add

Feld Thoughts

The next person on the list of supporters is Scott Maxwell at OpenView Venture Partners. 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. ” Second, I went through the scale up of the organizational VC firm in the late 1990s at Mobius Venture Capital. Venture Capital baremetalvc deeply held beliefs openview scott maxwell Techstars value-add VC

#PeakVC

K9 Ventures

I define #PeakVC as the point in time when the maximum amount of $$s are entering the Venture Capital industry. That is because the venture capital industry operates in cycles. When the perception of returns in the venture capital industry goes up (for examples when new paper unicorns are being minted every other day) then everyone and their mother feels like they should be investing in venture capital.

What I did on my summer vacation: The First LP Close ($3.5mm) of Brooklyn Bridge Ventures

This is going to be BIG.

It would be months before Foursquare's first round touched off a NYC venture frenzy. While my company may not have lasted, and even though I swore to myself that I wouldn't do another startup--this recently launched new venture is moving forward with the help of some fantastic partners. I'm ecstatic to announce that Brooklyn Bridge Ventures has just completed a first close of $3.5 What is just as exciting is the Brooklyn Bridge Ventures focus on talent.

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What We Are Seeing

A VC : Venture Capital and Technology

The capital markets are finite at some level. The conventional wisdom is that 10-20% of venture funds produce 100% of the returns in the asset class. The one bright sign in LP land is that emerging managers (what USV was a few years ago) are getting more attention from LPs. Venture Capital and TechnologyThe Wall Street Journal has a story out today that says " Web Startups Hit Cash Crunch."

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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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Business Love

Feld Thoughts

I’m guessing that Jamey was the LP in the post that Jo is referring to, since the principles of business love, that Jo refers to, are exactly what we talked about. Entrepreneurship business love culture Venture Capital Last night I had dinner with my partners and our significant others. It was a wonderful evening with the three people I work most closely with, the people they love, and the most important person on the planet to me.

LP 101

Some Thoughts On InvestorRank

A VC : Venture Capital and Technology

This is an insightful way to look at the early stage venture capital business. But if I was investing in venture capital firms as an LP, this would be a big part of what I would look at. Venture Capital and TechnologyChris Farmer , a VC with General Catalyst, presented some interesting data yesterday at Disrupt. He ranked VC firms on the basis of what companies they invested in as the first VC investor.

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On the Road to Recap:

abovethecrowd.com

In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “ The Age of the Unicorns ” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.” All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. Competition also has access to capital.

The Pre-Seed FAQ

K9 Ventures

You see, Dan knows more about venture than most people; and if Dan isn’t aware that “pre-seed is a thing,” then I haven’t done a good enough job of explaining to the world what I and K9 do! Luckily, Kia Kokalitcheva followed up with a post titled “ The rise of “pre-seed” venture capital ,” that made me feel just a tad better, but that uneasy feeling still didn’t leave me. Pre-Seed is the first institutional capital invested in a company. Engineering Capital.

How to Develop Your Fund Raising Strategy

Both Sides of the Table

There is all sorts of advice on the Internet about how to raise capital. I’ve raised money as a “hot company” and I’ve raised capital when no one would return my phone calls. So why would raising venture capital be any different.

Crisis Shmisis: Q2 2010 Closes with 40 deals and more than $400 million raised in Israel (Deal Summary)

VC Cafe

T he second quarter of 2010 has come and gone and despite the depleting VC and incubator capital in Israel, the quarter has brought approximately 40 deals with over $400 million invested. As a part of the round Rina Shainski, General Partner of Carmel Ventures joined company’s board.

Ending the Toll Roads to LP Fundraising

This is going to be BIG.

Unlike a venture capital firm that states its criteria on its website and has forms, e-mail addresses, etc to encourage outreach, your site does a lot better job of saying "Go away!". The interesting thing is that being connected to wealth isn't necessarily a driver of good venture capital performance--why would it be? I know how hard it is myself because I used to vet VCs for a living when I was on the insitituional LP side. Venture Capital & Technology