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. Take a look at the founding syndicates of each: Masstor Sytems (5/1979). Quantum Corporation (6/1980).

Corporate Venture Capital: Obligatory or Oxymoron?

David Teten

She had so much insight to share that we broke the interview into two parts, 1) Corporate Venture Capital and more broadly, 2) How the Fortune 500 Can Buy, Invest and Partner with the Innovation Economy (coming soon). . Corporate venture funds are also investing earlier today.

Invite to PEVCTech June 17 Event: Private Markets Syndication Solutions

David Teten

The post Invite to PEVCTech June 17 Event: Private Markets Syndication Solutions appeared first on David Teten. PEVCTech Private Equity Venture CapitalI hope you’ll join fellow members of PEVCTech.com for an informal discussion around: – Co-investing with family offices and private equity investors in proprietary, direct deals. – The technology stack which makes the deal process efficient and scaleable, without sacrificing the value of relationships.

On Human Capital & Venture Capital

thebarefootvc

It is the human capital involved, both internally with company teams and externally with advisors, boards and investors, that is going to differentiate which startups survive and become the disruptive businesses of tomorrow.

How to Scale a Venture Capital (or Private Equity) Fund

David Teten

But, we normally have a clear ceiling on how high we can grow AUM, before hitting practical limits to deploying capital within the traditional VC model. . My Partners at HOF Capital are younger than I am, which means that we have a half-century horizon for the franchise we are building.

Is @AngelList Syndicates Really Such a Big Deal?

Both Sides of the Table

If you track the venture capital industry it would be hard to miss the conversation going on this week over AngelList “Syndicates.” Bowery Capital). Is AngelList Syndicates really such a big deal? For starters, what is AngelList Syndicates?

Able Lands $6 Million in Venture Capital and Expands Nationwide

SiliconHills

Able, a non-bank commercial lender, Tuesday announced it has closed on $6 million in venture capital and plans to expand its services nationwide. Blumberg Capital and RPM Ventures led the round with participation from Peterson Partners and Expansion Ventures AngelList Syndicate.

When VCs Invest Together, Does Ability or Affinity Matter?

Feld Thoughts

The first article, In Venture Capital, Birds of a Feather Lose Money Together , was a summary that let to the second article, The Cost of Friendship , which led to the actual article behind the annoying SSRN paywall. Venture Capital gompers hbs syndicate VC

How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. In venture capital in particular, early-stage companies are often operating in frontier industries, where the rules are unpredictable and conventional analytic frameworks may be misleading. Google Ventures (GV). Correlation Ventures. Two Sigma Ventures. 2) Raise capital.

When VCs Invest Together, Does Ability or Affinity Matter?

Feld Thoughts

The first article, In Venture Capital, Birds of a Feather Lose Money Together , was a summary that let to the second article, The Cost of Friendship , which led to the actual article behind the annoying SSRN paywall. Venture Capital gompers hbs syndicate VC

How VCs Structure a Syndicate and Recruit Coinvestors

David Teten

First, a formal definition: According to Capital Dynamics , “Co-investments are direct investments in a company made alongside and on the same terms as a lead [General Partner]. GPs strategically invite trusted [Limited Partners and others] to co-invest, often based on the LP’s ability to add value or when the amount of capital required to complete an attractive transaction is larger than they are able to invest alone.”.

How to Evaluate Firms for a Seed VC Syndicate

Genuine VC

There are essentially two distinct basic strategies for startup entrepreneurs to raise a seed round of capital: Subscription approach – An entrepreneur sets a structure (usually a convertible note) and recruits individual angel investors who subscribe to the round, all without a term-driving lead investor. Sometimes the subscription approach works to include venture capital firms, but only for very “hot” company or in a competitive environment, like at a Y-combinator demo day.

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.

Paul Berberian Interview on This Week In Startups

Feld Thoughts

Earlier in the morning I read Jason’s post on LinkedIn titled The Great Venture Capital Rotation. I think it was originally titled “The End of Venture Capital Sort Of” (based on the URL).

The Silliness Of Recapping Seed Rounds

Feld Thoughts

If I was leading a gang of friends (that’s what I called it before the word syndicate started to be used), and that gang had put in $200k alongside my $25k, I’d encourage my gang to do the same, and they often did. In this case, we misread the respect – or lack thereof – that a co-investor and an entrepreneur would have for the other seed investors and the seed capital that helped them get a product built and into customer hands. Here’s the scenario.

Transparent Funding Announcements

Feld Thoughts

Kyle followed the tradition of extreme openness about the financing process that I think Rand Fishkin started with his post three years ago titled Moz’s $18 Million Venture Financing: Our Story, Metrics and Future. Another company that did an awesome transparent funding announcement was Buffer (and app and company I love, but am only a tiny investor in via an AngelList syndicate) when they announced We’re Raising $3.5m

The Story Behind Our Investment In Fiddler Labs

Haystack

Haystack is lucky to be a seed investor in Fiddler Labs, alongside Bloomberg BETA and Lightspeed Venture Partners, where I am also a Venture Partner. The ride is made even easier by knowing that my friends James Cham from Bloomberg BETA and one of my mentors and colleagues Ravi Mhatre, along with new Lightspeed partner Jay Madheswaran, will be forming a power-syndicate to help support Fiddler Labs and the future of Explainable AI.

“Your Portfolio Is Your Path”

Haystack

Slowly I have learned – the association investors have with certain founders, syndicate partners, and downstream VC firms matters; the people one chooses to work with as investor matters a great deal; and while the decisions may happen quickly, they stick around for a long time. Career Culture Technology Venture CapitalYou are the average of the five people you spend the most time with. You are what you eat.

So You Wanna be a VC?

Professor VC

When AngelList first launched syndicates a few years ago, I was very skeptical of the idea of angels taking carry on my investment. So what changed and why I am now launching a syndicate? A syndicate is very effective and efficient way to raise capital.

The Parlay

Haystack

Today, with more scout funds, syndicates, and newer funds forming weekly, those folks have parlayed whatever they’ve done before to get the chance to put money to work for others. Career Culture Technology Venture CapitalIn gambling, particularly in sports, there’s a concept of “parlay.”

Bright future for London VC scene

The Equity Kicker

That’s great news for the startup ecosystem which has been short on capital for some time now, with the twin results that some companies are forced to invest more conservatively than they otherwise might whilst others move to the US and we lose their jobs and talent. Venture Capital

Make Your Own Decisions

Feld Thoughts

We describe Foundry Group ‘s behavior as “syndication agnostic.” Because we are syndication agnostic, we are delighted to work with great co-investors and welcome and encourage the interaction and partnership. Venture Capital decision making investing social proof” When we make an investment, we are completely agnostic as to whether or not we have a co-investor. This is true at early stages but also true at later stages.

Too Many Seed Investment Choices

Feld Thoughts

We are syndication agnostic – happy to invest alone and equally happy to invest with firms we like to work with. Venture Capital Foundry Group seed investings strategyYesterday I sent emails out passing on participating in two seed rounds for companies I really like. They had lots of investors trying to invest and each company was competitive with two other seed stage companies we’ve seen in the past 30 days.

UK VC trend points to smaller, less syndicated deals

Fred Destin

which is the lowest in 9 years Striking trend 2: syndication dropped below 60% to 54% for the first time in 10 years So many smaller deals done by single investors. As we are seeing a thinning out of active "larger" funds and concentration of European venture capital arounds the "platforms" (Accel, Balderton, Index, Wellington.),

Introducing our latest investment: Mattermark – Big Data Comes to VC

Version One Ventures

Thus, it should come as no surprise that we are now seeing Venture Capital being disrupted by these forces as well. In his post The Disruption of Venture Capital , Albert Wenger described VC as “the club you had to be invited into.”. start-up databases/networks like CrunchBase and AngelList ) has led to unparalleled access to investment capital as more seed funds, angels, and syndicates emerge on the scene. Image via CrunchBase.

How to Launch, Manage, and Invest a VC Fund

David Teten

Just as with any company, the most important issue is the team; see “ How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm “ . HOF Capital has stitched together our workflow across Google Suite , Slack , Airtable , Asana , Copper , and some other tools (leveraging Zapier for basic 3rd party integration, in addition to custom development for certain other integrations). 3) Raise capital.

How to Launch, Manage, and Invest a VC Fund

David Teten

Just as with any company, the most important issue is the team; see “ How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm “ . HOF Capital has stitched together our workflow across Google Suite , Slack , Airtable , Asana , Copper , and some other tools (leveraging Zapier for basic 3rd party integration, in addition to custom development for certain other integrations). 3) Raise capital.

Excited to be the Least Stylish Investor in the Most Stylish Company: Backing Bradford and Bezar

This is going to be BIG.

To date, I''ve backed three fashion related companies--Refinery29, chloe + isabel, and Ringly--and now I have the pleasure of joining the syndicate of investors in Bradford Shellhammer ''s new company, Bezar. I was a huge Fab.com buyer in the early days when we backed it at First Round Capital. Venture Capital & Technology

Asset Management Is A Bizarre Industry Ripe For Disruption

David Teten

At my firm, ff Venture Capital, we’re trying our part to rethink how the industry works, and also actively looking for opportunities to invest in companies creatively disrupting this sector, e.g., our portfolio companies Addepar and Indiegogo.

The First Live Meeting With A Founder

Haystack

Occasionally here, I’ll make a smaller investment to start and help syndicate. Career Culture Technology Venture CapitalRecently on this blog, I’ve been attempting to unpack how an investor can sort through deal flow and potential investment opportunities. After writing about “ the quick kill ” to discard of inbound flow, next I wrote about what actually captures my attention and graduates to a meeting. So, now, what happens in the actual meeting?

Time is the Enemy of All Deals

Both Sides of the Table

We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. It quickly became impossible to raise venture capital. It isn’t even a story about raising venture capital or M&A.

The Strong Rejection

This is going to be BIG.

I''ve been helping to syndicate a few opportunities lately and what has really surprised me was how wishy washy the turndowns were. Venture Capital & Technology When I turn down the opportunity to invest in a startup, I really turn it down. I try and say exactly what I don''t believe will happen, or why I don''t believe in what you''re doing. In essence, I''m setting myself up to either be spectacularly wrong or to be right.

Good Times Ahead for VC-backed Tech Companies?

Both Sides of the Table

On the third Wednesday of every month I co-chair a meeting called the SoCal VCA (venture capital alliance), which represents participants from all of the top venture capital firms in Southern California as well as prominent members of the Tech Coast Angels (TCA).

IPO 305

Who's any good?

This is going to be BIG.

Would the entrepreneur enthusiastically include them in the syndicate of their next venture? Venture Capital & Technology The NYC startup community maintains a positive, supportive atmosphere. We celebrate a strong effort. However, that often makes it hard to tell who actually excels at their job and who just mails it in or got lucky. This goes for founders, employees and investors alike.

The “reverse” pitch: Who should you have on your cap table?

Version One Ventures

When we think about pitches, most of the focus is on entrepreneurs pitching investors for capital. For the latter: how has the VC supported companies as they exit for a profit, capital back and at a loss? In the meantime, we’d love to hear how you decided on your investor syndicate? Entrepreneurship investors manifesto reverse pitch startups value-add Venture capital

How early should you connect to a VC? Here's some data.

This is going to be BIG.

It''s also not the best way to create a helpful syndicate of investors that share the founder''s vision for the company. I went back across the 21 investments I''ve made both at First Round and at Brooklyn Bridge Ventures --a period that dates back to January 28, 2010, when I closed on Backupify. As for the two and a half year mark, it should say a lot to anyone looking to get into venture. Venture Capital & Technology

The Rise & Fall of Great Venture Firms [Part 1] ? AGILEVC

Agile VC

The Rise & Fall of Great Venture Firms [Part 1]. I happen to be fascinated by the history of the VC industry, and one of the things we discussed at a recent offsite are the common threads behind the rise and fall of great venture capital firms.

Understanding the Risks of VC Signaling

Both Sides of the Table

This is part of my ongoing series on Understanding Venture Capital. I recently wrote a blog post on understanding how the size and age of a venture capital fund might affect you when you’re raising money. Same with True Ventures.

Announcing K9 Ventures II – A $40M technology-focused micro-VC fund

K9 Ventures

I am pleased to announce the formation of K9 Ventures II, L.P. K9 Ventures started investing in 2009 with our first fund, K9 Ventures, L.P., With the new fund K9 Ventures will be able to invest between $250K – $750K as an initial investment in the companies we back.

Announcing K9 Ventures II – A $40M technology-focused micro-VC fund

K9 Ventures

I am pleased to announce the formation of K9 Ventures II, L.P. K9 Ventures started investing in 2009 with our first fund, K9 Ventures, L.P., With the new fund K9 Ventures will be able to invest between $250K – $750K as an initial investment in the companies we back.

HBS Alumni Angels assets for investing in women and minority-led startups

David Teten

Harvard Business School is featuring an article about the Venture Capital Access Program on the website of the U.S. HBS Alumni Angels of NY has many Members (including me) who are institutional venture capitalists. Since 1970, NAIC Member firms who focus on private equity and venture have invested in and transformed more than 20,000 companies. Diversity Entrepreneurship HBS Alumni Angels New York NextNY Venture Capital Women

2011 Valuation Survey of North American Angel Groups

Gust

Speaking with many angel leaders , I believe we have identified several possible explanations for group-to-group variations: 1) Clearly, startup ventures in some business verticals command high pre-money valuations that others. 3) Some groups invest $2 million or more in pre-revenue companies, while others typically invest less than $500,000 in these very early stage ventures. Invested Interests angel investment fundraising pitching venture capital

Valuations 101: Scorecard Valuation Methodology

Gust

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. Experience proves that half of these companies will fail (returning nothing or less than capital invested), another 3-4 will provide a modest return on investment of 1X to 5X and one or hopefully two of the ten companies will return 10X to 30X on the initial investment over a five to eight year period of time. – Need venture capital.