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Venture Capital is About Human Capital

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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. Fundamentally venture capital is about human capital. Venture Capital is a people business.

How to Build a Startup & Understanding Venture Capital

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And if you do happen to be lucky and find the right mountain to climb, if you find that you’ve started ascending the peak before others have found the right trail — then venture capital is for you. But you need to understand venture economics.

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Bad Notes on Venture Capital

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On the phone … Me: So, you raised venture capital? I have never come across a sophisticated A, B or C round venture capitalist who thinks convertible notes are a smart move for entrepreneur or investor. ’ But do you want to start a relationship with your most important supplier – that of capital to fuel your business – by avoiding talking about his or her expectations in terms of rights or privileges? This week.

Why 2017 Should be a Great Year to Raise Venture Capital

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

What Do LPs Think of the Venture Capital Markets for 2016?

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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 Venture Capital is So Much More Compelling Now

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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.” I presented the deck below – which was prepared with the great help of Upfront Venture’s Principal Jordan Hudson – at Dave McClure’s must attend event called PreMoney with much more data and narrative than I had in my blog post.

Why Was Winter in Venture Capital Funding so Short?

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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.

Understanding What’s Going on in #LATech

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Upfront Ventures was created 20 years ago as one of the original VC funds in Los Angeles. https://medium.com/media/3c33723f326245292958d4b055dfb424/href Today we learned that another great fund was announced — Fika Ventures. startup venture-capital

How Has Product Hunt Become Such a Critical Startup Website?

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It was the place that every startup knew they HAD TO be in order to attract initial users and also gain the attention of venture capitalists. This Week in Venture CapitalProduct Hunt.

Getting Your Head in the Game for Fund Raising

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It’s why raising a round of capital often feels like a hollow victory because it almost feels like a temporary reprieve from the Grim Reaper and in a way every new round just sets the bar higher to clear for the next round of financing or the hope of reaching profitability.

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

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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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Why Misunderstanding Startup Metrics Can Cost You Your Business

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The key to being able to run a business that isn’t yet profitable (on operating margin) is availability of capital to finance losses and preferably at a cost that isn’t too punitive to the founders and employees. It’s funny how scarcity of capital can focus one’s mind.

What to Make of Andreessen Horowitz’s Returns?

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Having a huge services venture firm isn’t for everybody and it isn’t the only strategy that can succeed. Upfront Ventures has partnered with Andreessen Horowitz on several deals.

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Understanding Changes in the Software & Venture Capital Industries

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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.

What Most People Don’t Understand About How Startup Companies are Valued

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Most venture capitalists who have been in this business for a long time foresaw this correction and have been talking about it privately for the better part of the last year or two. Many experienced partners are funds have 7-10 boards and most of these will need more capital.

Venture Outlook 2016

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There is a lot of uncertainty about the state of the private, high-growth technology markets and the venture capital markets that underpin them. Final venture outlook 2016 from Mark Suster. Note that I’m not absolving my industry, venture capital, from bad behavior.

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What I’ve Learned About Venture Funding

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We love capital efficiency until we love land grabs until we abhor over funding until we get huge payouts and ring the bell for more funding until we attract every non-VC on the planet to invest in startups until it crashes and we start the cycle all over again none the wiser. VC funding.

How Do VCs Choose Their Investors (and should entrepreneurs care?)

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I recently read a blog post by Beezer Clarkson, Managing Director of Sapphire Ventures about why entrepreneurs should care about from whom their VC funds raise their capital. Stable Capital Amongst the hardest things to find when one raises a new fund is ability to have stable capital.

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What Everyone Should Take Away from Twitter’s 8% Staff Reductions

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One of the points I tried to make is that as venture capital investors as an industry we seem to have a healthy disdain for public market investors. What is your revenue growth rate and what does this imply about your number of months of capital remaining?

Making Sense of the Stock Market Drops in Relation to Venture Financing

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But I do have some insight into how this will affect venture markets. When many venture investors are seeing their personal public portfolios tank it creeps into their business lives and creates an emotion that is less risk tolerant whether they’re aware of it or not.

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The Changing Structure of the VC Industry

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There has been much discussion in the past few years of the changing structure of the venture capital industry. The rise of alternative sources of capital (crowd funding and the like). The overall trends in our industry have breathed a new life into the venture capital industry.

The State of Venture Capital and the Internet

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Early today I gave a keynote at the VCJ Venture Alpha conference here in San Francisco. I was asked to speak about the topic of “what is going on in the venture capital world and what is the next big thing after social networking?”. Some of the big ones I left off was Tim Connors of PivotNorth and Aydin Senkut of Felicis Ventures.

Fauxmentum

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“the ecommerce company gained fauxmentum by raising artificially high amounts of venture capital and spent lavishly on customer acquisition despite long payback periods and questionable LTV” __. Raise capital when you can and raise slightly more than you need.

How to Decrease the Odds That Your Startup Fails

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Marketing with long payback is precisely what requires venture capital. We tested a simpler version of our product in the market first to prove product/market fit before raising a ton of capital, we build software to handle the complexity of the “mundane things” like driver routing, logistics tracking, warehouse management, photo processing, etc and we expanded our offering to test whether we could convert at better rates with an expanded offering.

How to Develop Your Fund Raising Strategy

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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.

The Surest Sign You’re Winning is When Goliath Takes a Swing at You

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I had the good fortune of sitting down privately with Sir Richard and listening to him talk about his venture capital activities and what interested him, but what got him most animated was when he spoke about Jamie and Ring.

Welcoming the Newest Partner to Upfront Ventures

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Today is amongst the proudest days I’ve had at Upfront Ventures — getting the chance to announce that Kevin Zhang has been promoted to Partner. years at Upfront has been both a pleasure and also has taught me a lot about venture capital. venture-capital startup

Why I Look for Obsessive and Competitive Founders

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So if you’re going to raise venture capital and compete in large, growing, winner-take-most markets you had better be prepared for other people to want to knock you off your stool, steal your limelight, grab your customers and muck you up. Obsession.

How to Kick Start Your Community’s Startup Scene

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Changes in the Software World & in Venture Capital. But notably you had the following changes: Horizontally scalable computing & storage systems, which meant you required less capital up front for hardware. Angels & Recycled Capital. Venture Capital.

The Coming Shift in Enterprise Software

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And of course we welcome Microsoft Ventures. It’s great to see Microsoft understand the importance of venture capital under the leadership of Satya Nadella and at Tact working with Rashmi Gopinath.

What To Do When Your Competitor Gets Funded?

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announced they raised $9 million from Sequoia , arguably the best venture capital firm that exists. If well capitalized (like we are at MakeSpace – remind investors of that). This morning Clutter.io Congratulations. Sincerely. Conventional wisdom says I shouldn’t tell you this because I invested in their main competitor, MakeSpace. I know my MakeSpace friends will forgive me because I just don’t believe the conventional wisdom is right.

How This Entrepreneur Raised $28,000 Using Airbnb to Fund Her Startup

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She hasn’t raised any venture capital. Launchpad LA Startup Advice This Week in Venture CapitalTracy DiNunzio isn’t your typical Silicon Valley startup founder. She’s a painter and a self-proclaimed Bohemian.

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How to Avoid Being Disrupted as a VC

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My partner Greg Bettinelli (worth following on Twitter) was recently named by The LA Business Journal as the “ Top deal maker in Los Angeles in Venture Capital.” And Greg has had the most influence on Upfront Ventures’ strategy since he joined.

My One Wish For All Startup Employees

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But he didn’t have access to venture capital money, online marketing dollars, social media – this was the late 60’s / early 70’s.

Should Startups Care About Profitability?

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Venture capital isn’t right for many business but if you do want to raise from a VC at some point you need to understand that often investors care more about growth than profits. They raised $5 million in venture capital to fund growth.

What is the Right Burn Rate for your Startup?

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One of the hardest decisions entrepreneurs make when they start a company and raise outside capital is figuring out what an acceptable “burn rate” is.

The Pivot You Need to Read About

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GOAT just announced it raised $5 million in venture capital led by our friends at Matrix Partners. It’s a Chanukkah story where 18 months of venture capital funding ends up lasting more than 4 years and where against all odds the underdog succeeds.

Some Thoughts on Leadership Going into 2016

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Strictly for example sake I’ll take our mission at Upfront Ventures. We’re a national venture capital investment firm but with our roots firmly in Los Angeles. I may choose different words from time-to-time to describe Upfront Ventures. We all want larger amounts of capital to hire more senior people and to build bigger teams. Having time to think about “leadership” at most startups feels like a luxury.

Want to Know How VC’s Calculate Valuation Differently from Founders?

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Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. I told them that True Ventures had stuck to their brand name and submitted a totally clean term sheet.

What Do Industry Insiders Think Will Happen in VC in 2016?

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” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. times the dollars went into venture-backed startups as went the money that poured into venture.