What VC Can Learn From Private Equity

A VC : Venture Capital and Technology

I spent a week in Europe a few weeks ago with our friend Eric who is a managing partner in a private equity firm. I’ve also had the pleasure of working on a board of one of our portfolio companies with a private equity investor who is making a few minority investments. Venture Capital and Private Equity are very different investment disciplines. Venture Capital is minority investing. Venture Capital requires it.

Where Do Venture Capital Dollars Actually Come From? This Visual Explains

Agile VC

Most folks reading this will know that many startups were built in part with the help of venture capital. So I wanted to dive a little deeper into what I call the startup capital supply chain. Google, Intel Capital).

Trending Sources

Q316 State of Venture Capital Update With Cooley

Feld Thoughts

This quarter they interviewed me as part of it on Quarterly VC Update: Brad Feld on the State of Venture Capital Investing. At the same time, if you are a clearly successful growth company, there is a huge amount of capital available once you’ve reached a point of clear success (often after $20m – $40m has been raised). There is a huge capital supply gap for companies that are in between early startups and companies that are successful growth companies.

Do venture capital firms or private equity funds offer debt financing for startups?

Gust

For venture capital, this is typically ten times the invested capital, and those returns can only be achieved through equity appreciation, not debt service. Invested Interests debt financing private equity funds startup VCs venture capital firms The direct answer to your question is NO, VC and PE funds do not provide debt financing for any companies.

The Rise of Chinese Venture Capital – (Part 3 of 5)

Steve Blank

This post is about the rise of Chinese venture capital and how it helped build the countries entrepreneurial ecosystem. The Rise of Chinese Venture Capital. SBIR and STTR programs, the Torch Program’s funding for new ventures was limited to seed funding the front end.

Private Equity: Threat or Menace?

Inc Startups

Private equity is under attack in Presidential politics. If you let that affect your decision to accept private equity capital, you're out of your mind. What is surprising, though, is that the target of one of the attack ads is private equity.

Can’t attract VC money? Buy a business with private equity

The Next Web

Venture capital investors are looking for different things than private equity investors. Venture capital firms are typically growth-oriented, early-stage investors looking for these proof-of-concept points before cutting a check.

My 20+ Year Career in Venture Capital and Private Equity is Built Upon a Rubber Chicken

Inc Startups

That chicken was there for me at the moment I needed him most. How to Hire the Best

How to Make the Perfect Startup Pitch

The Startup Magazine

Keep in mind that venture capitalists and angel investors are pitched to every day, according to Forbes contributor Erica Swallow. This presents the opportunity that your startup will capitalize on. million valuation ($150,000 for 10 percent equity) in 2008.

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.

Microcredentials for the Effective Venture Capital or Private Equity Investor

David Teten

I’ve also published research here on private equity , venture capital , hedge funds and mutual funds , and angel investing , as well as on fund management : origination , due diligence , investment research , and portfolio acceleration. Directors College For Venture Backed Company Directors. Stephane Levy, Partner at Cooley , is currently teaching a series on ‘ Introduction to Term Sheets ’ in New York with the New York City Venture Connection.

Venture Capital Access Program launches to aid women and diverse entrepreneurs

David Teten

VCAP© Addresses the Gap between Venture Capital and Funding for Women and Diverse Entrepreneurs. The National Association of Investment Companies (NAIC) is the trade association representing women and diverse private equity and venture firms.

Fundraising Hacks for Venture Capital and Private Equity Funds

David Teten

Historically, the process of winning capital from limited partners has been opaque. A few years ago, I presented at an Invesco conference on Emerging GPs, and one of the highlights was a presentation by Laurie Weir summarizing CALPERS’ selection criteria under their Private Equity Emerging Manager Program Review. Origins is a podcast about Limited Partners, created by VC Notation Capital. Sapphire Ventures’ Top 10 tips for pitching an LP . Meyler Capital.

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IVC-GKH: Summary of Israeli Private Equity Deals - Q1 2012

Recent Buzzes - VC Experts, Inc.

Here are the findings of the IVC-GKH Quarterly Private Equity (PE) Survey conducted by IVC Research Center , which for more than 15 years has been at the forefront of private equity, high-tech, start-ups and venture capital research in Israel. The Survey reviews Israeli private equity deals involving Israeli and foreign PE funds and other investors - both Israeli and foreign.

How to Work with Private Equity and Venture Capital Portfolio Companies

David Teten

I’m delivering a webinar next Tuesday for Harvard Business School Career Services on “How to Work with Private Equity and Venture Capital Portfolio Companies” Among the topics I’m covering: - Raise capital from a venture capital fund to found a company.

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.

Is Private Equity on Your Side?

Inc Startups

Mitt Romney is being slammed for his work at Bain Capital. But for small business, private equity can work much differently than it does for big public companies. Get ready to hear a lot more about the world of private equity. Then, “We need an equity partner.”

Conference Notes on Sourcing Deal Flow & Developing New Business for Private Equity

David Teten

I enjoyed participating in last week’s Capital Roundtable Private Equity Masterclass on “ Best Practices for Sourcing Quality Deal Flow & Developing New Business ” (May 26 th , 2011). High Road Capital Partners Deal Sourcing Keynote. Fitzsimmons, High Road Capital Partners. Otherwise, private owners tend to have unrealistic expectations or an arbitrary sale price expectation. Prestegaard, High Road Capital Partners.

April 4-Innovation in Private Company Liquidity-Online Merger Markets, Social Media, Secondary Markets, Non-US Markets, Private Equity, and the Disappearing IPO

David Teten

Successful private companies such as Facebook and Zynga now have active secondary markets in their stock, blurring the meaning of their ‘private’ status. Over the last decade, Dan has served on more than a dozen public and private company boards.

More Cash for Entrepreneurs, Crowdfunding, and Indiegogo

David Teten

As Steve Case has said, it’s ridiculous that anyone can gamble and be guaranteed to lose money, but there are strict regulations around who can invest in early-stage private companies and earn (in some cases) a 27% IRR on their capital. *.

What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking

Steve Blank

Luckily in the last quarter of the 20 th century a new source of money called risk capital emerged. Risk capital takes equity (stock ownership) in your company instead of debt (loans) in exchange for cash. Filed under: Technology , Venture Capital.

Summary of Israeli Private Equity Deals - Q2 2011

Recent Buzzes - VC Experts, Inc.

IVC Reports: Private equity deals drop 16% in the first half of 2011. GKH), a leading Israeli corporate law firm specializing in M&A, joint ventures, venture capital, equity and debt financing. Israeli private equity deals by type.

IVC - Summary of Israeli Private Equity Deals - Q1 2011

Recent Buzzes - VC Experts, Inc.

Summary of Israeli Private Equity Deals - Q1 2011. Private equity deal value at $216 million in Q1 2011. GKH) , a leading Israeli corporate law firm specializing in M&A, joint ventures, venture capital and equity and debt financing.

Venture capital vs self-funded for high growth technology businesses. This was surprising.

Business of Software Blog

There seems to be a generally held feeling that venture capital is ususally suitable for rapid growth businesses and that founders should consider taking it if they want to add rocket fuel to their business.  It was inspired by an observation that only 14% of the fastest growing 500 companies in the US were venture backed according to Carl Schramm. Carl Schramm talking about US innovation and venture capital.

Will Private Equity Firms Be Exempted From SEC Registration Rules?

Recent Buzzes - VC Experts, Inc.

Moves to amend the US's Dodd-Frank Wall Street Reform and Consumer Protection Act - the voluminous and wide-ranging response to the financial crisis that passed into law last summer - were widely reported in the press this week, and they caught the attention of the European private equity industry. One of the proposals would create a new exemption for advisers to "private equity funds" from the requirement to register with the SEC by 21 July 2011.

The State of Cleantech Venture Capital, Part 1: The Money

Secret Formula

I’ve heard it said more than once in the past month that venture-backed entrepreneurship clearly isn’t working here, so maybe we should all pack our bags and go home. We can answer this question by using yesterday’s financing data to project tomorrow’s capital requirements.

Considering ILPA Private Equity Principles

Recent Buzzes - VC Experts, Inc.

Last year the Institutional Limited Partners Association (ILPA), a voluntary organization dedicated to the interests of institutional limited partners in private equity funds, released its Private Equity Principles. Since then, the Principles have received the endorsement of more than 100 of the largest and most influential institutional private equity investors. By Attorneys at Drinker Biddle & Reath LLP Joshua B. Deringer, John J. Emslie, Neil K.

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.

New Meetup on Building Tech Tools for Private Equity+VC Investors

David Teten

My colleague Sebastian Soler, software engineer at ff Venture Capital, is leading the launch of a new Meetup with me. Our meetup is focused on how to use technology to enhance investing in private markets, including VC, growth, buyout, and distressed.

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.

Venture Capital Hits Highest Level Since Dot-Com Bubble

Inc Startups

Venture capital activity is reaching a high not seen in more than a decade, with Internet firms setting the pace, according to a new report set for publication early Tuesday. New research from private equity research firm CB Insights finds that 812 companies received $8.1

Which books would you recommend to a VC analyst-associate?

Gust

The Business of Venture Capital. Raising Venture Capital for the Serious Entrepreneur. A Venture Capital Insider Reveals How to Get from Start-up to IPO on Your Terms. Venture Deals. Be Smarter Than Your Lawyer and Venture Capitalist. Venture Capital, Private Equity, and the Financing of Entrepreneurship.

The Generic VC / PE Reference Questions For An Executive Hire

Feld Thoughts

I don’t know which VC or Private Equity firm first came up with this list of questions, but like many elements of a term sheet, they seem to have been passed down from generation to generation. Venture Capital hiring pe personnel VCI’m on the receiving end of a lot of reference calls. I try to be thoughtful and direct in my responses, but I’m increasingly annoyed by the generic nature of the questions.

Build a Winning Private Equity Partnership

Inc Startups

If you're thinking about private equity as a source of funding for your growing business, it's important to find private equity partnership that will help, not hinder, your growth. Have you built a successful relationship with your private equity investor?

Partners Forever (or close to it)

A VC : Venture Capital and Technology

Mitt Romney is taking some flack for continuing to have ongoing involvement in Bain Capital well after he supposedly left the firm for good in 1999. I am still technically a partner in a venture capital firm (Euclid Partners) that I left in early 1996. Venture Capital and Private Equity are "long latency" businesses. And allocating your equity to others is another challenge. Politics Venture Capital and Technology

Staying Independent

A VC : Venture Capital and Technology

But there are plenty of entrepreneurs who have built interesting businesses using outside capital - angel, seed, VC, or some other form - and they have a portion of their cap table that is seeking a return on their capital on some reasonable timetable. To some extent this has already been happening in the buyout and private equity world. Let's say a company required $10mm of startup capital to get to breakeven. Venture Capital and Technology

How to Find the Top VCs for the Investment You Need

Up and Running

As we head into 2016, we leave behind a year of robust trends for venture capital—or “VC”—funding. The Pacific Northwest had a great overall year for venture capital activity in 2015—even if you count the 59 percent dip in Q4.

Private Equity and Social Media

David Teten

I’m giving a talk next month on “ How Private Equity Funds Raise Capital and Source Deals with Social Media” at Terrapinn’s Private Equity Latin America & Real Estate Latin America conference in Miami. Raise capital. Terrapinn’s Private Equity Latin America & Real Estate Latin America conference takes place on June 17 th -18 th at the Four Seasons, Miami.

Stars Aligned to Foretell Future of Indian Private Equity & Venture Capital

VentureWoods

Dear Colleague, In 2004, the buzz around one mega exit – of Private Equity investor Warburg Pincus from Bharti Airtel – got institutional investors across the world excited about the Indian Private Equity opportunity. Naturally, there was a boom in PE fund offerings from India- typically focused on minority growth capital type investments – to cater to this rising appetite. Who in turn need a vibrant set of VC funds to provide scale up capital.

Stars Aligned to Foretell Future of Indian Private Equity & Venture Capital

VentureWoods

Dear Colleague, In 2004, the buzz around one mega exit - of Private Equity investor Warburg Pincus from Bharti Airtel - got institutional investors across the world excited about the Indian Private Equity opportunity. Naturally, there was a boom in PE fund offerings from India- typically focused on minority growth capital type investments - to cater to this rising appetite. Who in turn need a vibrant set of VC funds to provide scale up capital.