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Venture Capital is About Human Capital

Both Sides of the Table

Most VCs did well academically and had enough career success that a venture firm was willing to give them an investment role or they were able to raise their own fund. We might help a management team deal with a vexing strategic question or a thorny negotiation but these are mostly tactical.

Pioneering Women in Venture Capital: Kathryn Gould

Steve Blank

Kathryn has been the founding VP of Marketing of Oracle , a successful recruiter, a world class Venture Capitalist, a co-founder of a Venture Capital firm, a great board member, one of my mentors and most importantly a wonderful friend. So I started Foundation Capital in 1995.

A Venture Capital History Perspective From Jack Tankersley

Feld Thoughts

In January, Jerry Neumann wrote a long and detailed analysis of his view of the VC industry in the 1980’s titled Heat Death: Venture Capital in the 1980’s. The key reason for the explosion in capital flowing into the industry, and therefore the large increase in practitioners, had nothing to do with 1970’s performance, early stage investing, or technology. Continental Capital*. $ 250,000. KPC&B II. $ 775,000. JMB Realty: Real Estate Management company.

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. These are extreme positions and often the deals settle in between but it can be U-G-L-Y and the financings are at times coupled with changing management teams.

17 Venture Capital Blogs You Should Be Reading

Up and Running

Whether or not you’re raising money for your business, getting advice from venture capitalists can be invaluable. Inside the Minds of Top Venture Capitalists: Blogs You Need to Read to Understand How VCs Think. Brad Feld is a managing director at Foundry Group in Boulder, Colorado.

It’s Not Easy applied to Venture Capital

K9 Ventures

If you’re even remotely connected to the “industry” of Venture Capital, you need to read Howard Marks’ It’s Not Easy memo. Pattern matching in venture capital may work for figuring out how to build companies, but it is less likely to work for ideas.

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 The SBIC Doesn’t Work For Venture Capital Anymore

Feld Thoughts

And, in the other two, I don’t expect to ever see any of my capital back because of the SBIC leverage. The SBIC was instrumental in the creation of the venture capital business. If you want to see a fun quote on it, read A History of Silicon Valley which quotes: “ …many venture capital pioneers think the SBIC program did little to advance the art and practice of venture investing. Peter Adams, head of Rockies Venture Club, is quoted a few times.

SBIC 51

Why Venture Capital is So Much More Compelling Now

Both Sides of the Table

It’s not hard to find people willing to write the narrative that “venture capital is not an asset class” or “venture capital has performed terribly.” It had an influence on the people who fund our industry in a negative way as many asset managers who fund our industry read this flawed report. Having worked through the data with Glenn I am even more optimistic about venture capital than I was even a year ago.

NovoED MOOC on Raising Venture Capital

Feld Thoughts

I’m spending the new two days filming the content for a MOOC on raising venture capital. The content is based on my book with Jason titled Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist. Several of my friends have done courses, including Chuck Eesley , a professor in Stanford University’s Management Science & Engineering group. The post NovoED MOOC on Raising Venture Capital appeared first on Feld Thoughts.

Why I Look for High Conviction, not Consensus, in Venture Capital Decisions

Both Sides of the Table

One of the least understood parts of the venture capital industry and venture capital firms is how investment decisions actually get made. The beauty of venture capital is that on any given deal I can only lose one times my money.

What Do Venture Capital Firms Want?

Up and Running

What are venture capitalists looking for? What do venture capitalists want in an investment? I introduce this topic with that reworked joke because so many people say “venture capital” when they really mean “angel investors” or “outside investors.”

Got "Founder Fit?" If You Want Venture Capital, You Need It

Up and Running

A few weeks ago I spoke with Boris Wertz, founder of JustBooks, COO of AbeBooks and founding-partner of Version One Ventures. In ” At present, Version One Ventures portfolio includes startups from all over the United States and Canada. Boris Wertz. Image credit Flickr.

Venture Capital Investors Look Beyond Your Startup

Startup Professionals Musings

Obviously, a key factor is always the state of the economy and the mood of the venture capital community. On the other hand, venture capital doesn’t get smoothly spread across the geographic and demographic landscape, and the number of active venture capital firms has dropped sharply.

How ff Venture Capital Works With Universities And Students

David Teten

I meet with a lot of people from the academic world, so I thought it would be helpful to summarize how ff Venture Capital works with universities. Look for opportunities to collaborate on new ventures. Photo: Steinbach and Evans Halls of the Yale School of Management.

The Big Secret to Raising Venture Capital

Growthink Blog

At the time, Tom was a partner at Enterprise Partners Venture Capital in San Diego. At the time (around 2003), many venture capital firms were licking their wounds. Years ago I served on a funding panel with Tom Clancy.

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.

Why VCs Should Recycle Their Management Fees

Feld Thoughts

Some of them recycle their management fees; others don’t. I’ve never really understood why funds don’t recycle their management fees. Let’s assume a $100 million VC fund that charges a 2% management fee and a 20% carry.

What I learned from raising venture capital

www.gabrielweinberg.com

I recently raised venture capital for the first time. DuckDuckGo raised a series A round from Union Square Ventures and a handful of awesome angel investors. Not one of the partners I talked to handed the deal off to another partner to manage, which says to me you have to figure out a priori which partner at a given firm would be most likely to get excited about your deal, or otherwise it is likely to be dead on arrival.

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. That means if you have 476 funds, you're looking at about 119 managers. Now, not every manager sticks around through four funds, but even if you're generous it's probably no more than 200 managers. 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.

IRR 25

Understanding Changes in the Software & Venture Capital Industries

Both Sides of the Table

In this three-part series I will explore the ways that the Venture Capital industry has changed over the past 5 years that I would argue are a direct result of changes in the software industry, not the other way around. Then they launched a simple database, management tools and so on.

When, Where, and How to Raise Venture Capital

Startup Professionals Musings

And as they sit and dream, most entrepreneurs think about venture capitalists. Venture capitalists, or VCs, are the folks with millions upon millions of dollars to invest in companies such as theirs. And then go back to venture capitalists later.

eyeQ Gets $3.5 Million in Venture Capital

SiliconHills

Align Capital, a new investor, led the round with participation from existing existing investors. As part of the deal, Lisa Harris, managing partner of Align Capital, joins eyeQ’s board of directors. Million in Venture Capital appeared first on SiliconHills. EyeQ, a shopper intelligence platform, announced it has received $3.5 million in Series A funding.

Venture Capital (VC) Blog Directory – 2011 Edition

Thinking About Thinking

This is the 4th edition of the Venture Capital Blog Directory ( 1st edition , 2nd edition , 3rd edition ). This directory includes 149 venture capital, microVC/seed, and growth equity blogs. Many thanks to my colleagues at Volition Capital for their assistance with this directory - we hope it’s a useful service for everyone. . Fred Wilson ( @fredwilson ), Union Square Ventures, A VC (81,483). Mike Speiser, SutterHill Ventures, Laserlike (490).

Why Venture Capital No Longer Defines Innovation

ReadWriteStart

Today’s venture capital deal flow to innovative new companies looks a lot like a fat man trying to squeeze into a slim Italian suit. In 2000, venture capitalists poured a staggering $112.2 Today, venture capital deal flow has slowed to a relative trickle, just $28.4

How to get a job in Venture Capital

Jason Ball's TechBytes

If you can fix one (or more) venture backed co’s, you will be loved and will probably find yourself a more permanent role. Analyst, Associate, Principal, Venture Partner, General Partner, Managing Partner – all require different amounts of the above. Venture Capital I get asked this question a *lot*. I wrote a post about it back in 2006 on the topic that I could point people to, but it looks a little light, so I thought I’d post an update.

The Singularity hits Venture Capital (Wilson/Kauffman Redux)

Fred Destin

I mean, really, who still wants to be a venture capitalist ? And then we have Fred Wilson telling us that should venture capital die, there's always be blogging. I an now expecting Chris Dixon to say he is turning to Venture Capital , and then I will be officially confused. The schizophreny of the venture capitalist. Venture partnerships need to collectively find winners and drive as much cash at reasonable valuations as they can into these stars.

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.

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. They don't have a directive to be invested in venture and they're not aiming to make some target return to pay out benefits or university operating expenses, etc. Partnership investing is boring.

U.S. Venture Capital Has Its Biggest Quarter Since Dot-Com Days

allthingsd.com

Venture Capital Has Its Biggest Quarter Since Dot-Com Days. venture capitalists put $8.1 It’s clear that factors like the greater American economy and the bumpy tech IPO market don’t necessarily have a direct and/or timely correlation with venture capital spending.

The Venture Capital Revival

ReadWriteStart

There have been a number of narratives in circulation over the last year or so: the " we're in a tech bubble " (or "we're not in a tech bubble") narrative, the "venture capital is in decline" narrative (or " venture capital is broken ").

Venture Deals: Chapter 8: How Venture Capital Funds Work

Ask The VC

Before we talk about the dynamics of the negotiation of the deal, it’s useful to understand the motivation of the person you’ll be negotiating against, namely the venture capitalist (VC). While the basics of how a venture fund works may be known, in this chapter we try to also cover all the nonobvious issues that play into how VCs think and behave. To do that, we’ll dive into how funds are set up and managed as well as the pressures (both internally and externally) that VCs face.

How do venture capital firms make money by investing in startups?

Gust

The venture capital fund itself makes money… …by investing early in a startup company’s life, when success is not at all assured. In exchange for investing capital to help the company grow, the fund receives an ownership interest in the company. In either case, the venture capital fund sells the shares that it owns, for more money than it originally paid for them.

5 Best-Kept Secrets About Venture Capital

Inc Startups

The most important things you need to know about how venture capital works--demystified. After 10 years as a successful entrepreneur, I''ve recently become a venture capitalist. Or at least, you''ll find it easier and experience less confusion and friction if you try to raise funding , or work in a venture capital-backed company. Here are my top 5 secrets I''ve learned about venture capital: 1.

How to Get Venture Capital: What NOT to Do

Growthink Blog

Many top venture capitalists (VCs) have blogs. Josh is the CEO and Managing Partner of Detroit Venture Partners. And because there's no way I can speak with all the VCs on a regular basis, I read many of their posts so I can understand their latest thinking and decision-making.

The Next Step in Disrupting Venture Capital: Emerging Manager Funds

Will Price

The Venture Capital industry is ripe for disruption. Over the last few years, super angels offered new capital to the market and groups such as Y-Combinator provided young entrepreneurs new avenues to success. The venture industry, however, lacks a very common model that the hedge fund industry has mastered - the emerging manager strategy. Paul Tudor Jones, another leading investor, continues to seed deserving managers, including Two Sigma.

7 Top Trends in Venture Capital

Inc Startups

As managing partner of Blumberg Capital; David Blumberg is a respected investor, with two decades of experience investing in early-stage tech startups

Why being a VC sucks. Advice to anyone who wants to get into venture capital.

This is going to be BIG.

I probably get around a dozen e-mails a week asking me how to get into venture capital. On top of that, anytime I talk to anyone who wants to get involved in startups but isn''t sure what they want to do, inevitably, I hear, "And then I was thinking maybe I should look into venture capital, too.". I''ve never really debated people on why they want to get into venture in the first place, even though a lot of people have misconceptions of it.

Why Venture Capital No Longer Defines Innovation

ReadWriteStart

Today’s venture capital deal flow to innovative new companies looks a lot like a fat man trying to squeeze into a slim Italian suit. In 2000, venture capitalists poured a staggering $112.2 Today, venture capital deal flow has slowed to a relative trickle, just $28.4

The Venture Capital Secret: 3 Out of 4 Start-Ups Fail

online.wsj.com

Management. SIGNIFICANCE PROMINENT. --> The Venture Capital Secret: 3 Out of 4 Start-Ups Fail. An entrepreneur with a hot technology and venture-capital funding becomes a billionaire in his 20s. But now there is evidence that venture-backed start-ups fail at far higher numbers than the rate the industry usually cites. About three-quarters of venture-backed firms in the U.S. backed by venture capitalists. High Capital Franchises.