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

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.

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Where Are The Best Executive Programs and Crash Courses for Venture Capital?

Ask The VC

A: While self serving, we recommend you start with our book – Venture Deals: Be Smarter Than Your Lawyer And Venture Capitalist. In addition, there are a bunch of courses now using the book that are referenced on the web that include additional materials that are helpful. Jason also did an excellent Crash Course on Venture Capital – the 90 minute video is below. Venture Capital Crash Course with Jason Mendelson from Andrew on Vimeo.

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.” 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.

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. Then in the middle of the process, we got picked as one of TIME's top 50 web sites for 2011 (annotated as D in the graph). Sure, I had heard of a bunch of VC firms, but when I went to their Web sites and looked at their team pages, I may have heard of one of their 2-10 partners.

What If Web And Mobile Apps Are Like TV Shows?

A VC : Venture Capital and Technology

One of the things we discussed that stuck in my mind was the thought that web and mobile apps might behave more like TV shows than traditional software applications. There are web and mobile applications that seem more immune to the "here today gone tomorrow" concern. Venture Capital and Technology Web/TechI was having lunch with a veteran of the entertainment and the video game business this past week. It was an interesting and wide ranging chat.

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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

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. Web Design/Tech Services. Capital Available.

A framework to think about pricing seed, angel, and venture capital rounds

This is going to be BIG.

2) Supply and demand of capital willing to invest in your company. Sometimes, this also relates to capital requirements of what the team needs. Note that, to even get venture in the first place, you are special. Venture Capital & TechnologyHow do you price a round?

What's in a (venture capital) website ?

Fred Destin

Late on Friday we launched the new website of Atlas Venture. One of the challenges that all venture capitalists are dealing with is that we are all peddling essentially the same product. The bottom line is we all sound pretty much the same , so what is a venture capitalist to do ?

Harvard's Go-To Venture Capital Firm

Inc Startups

The Experiment Fund, NEA's seed-stage venture capital firm, set up shop on Harvard's campus to catch young, entrepreneurial talent early. So out of NEA he spun out the Experiment Fund, a seed-stage venture capital firm, and set up shop on Harvard's campus.

Some Thoughts On The IPO Market For Web Companies

A VC : Venture Capital and Technology

We have an IPO market for web companies again. The past decade (post Internet bubble, post Sarbox) brought a new normal to the late stage venture capital market. The IPO market for web companies we have right now is rationale. stocks Venture Capital and TechnologyI don't have all the names in front of me, but this year has brought IPOs for Pandora, LinkedIn, Groupon, Zynga, and TripAdvisor.

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Mary Meeker's 2012 Internet Trends

A VC : Venture Capital and Technology

mobile Venture Capital and Technology Web/TechMary published this presentation this past week. I love these "state of the internet" presentations Mary does. There is so much useful information and insights in them.

Fund Raising is a Means Not an End

Steve Blank

If you don’t have scale as a goal then you shouldn’t be raising money from angel or venture investors, you should be getting a commercial or government small business loan.). • Search. These sources are a lot more forgiving of iterations and pivots than later-stage venture-capital funds.

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What Has Changed

A VC : Venture Capital and Technology

As I read this post in the WSJ about the changing nature of VC funding of consumer web companies , I thought that we may be looking at the symptoms and not the disease. As the WSJ notes, VC funding of consumer web and mobile companies is down 42% in this first nine months of 2012 (vs the first nine months of 2011). 1) the consumer web has matured. we are almost 20 years into the consumer web and we have large platforms that are starting to suck up a lot of the oxygen.

“Lessons Learned” – A New Type of Venture Capital Pitch

Steve Blank

Tell the Story of the Journey The company got to a point where additional capital was needed to expand just to keep up with the business (a warehouse/shipping center collocated with UPS, etc.) Lessons Learned” – A New Type of Venture Capital Pitch [.]

Mocked And Misunderstood

A VC : Venture Capital and Technology

Venture Capital and Technology Web/TechWhen people ask me, "how do you know which companies and services are going to be the biggest successes?", ", I usually tell them to look for the companies and services that are mocked and misunderstood.

Venture Capital Deal Buzz: Grubhub

Recent Buzzes - VC Experts, Inc.

GrubHub has more than hungry web surfers salivating. Venture capitalists are hungry for a piece, too. million cash infusion came from Origin Ventures in 2007. GrubHub rounded up $2 million more in 2009 from Leo Capital Holdings, Amicus Capital and Origin Ventures and topped that off with an $11 million Series C round in November 2010. The company said it plans to use the capital for R&D, acquisitions and mobile apps.

Developers of NYC Startup Tour to Visit ff Venture Capital

David Teten

After work on April 18, thirty-five curious developers will visit the ff Venture Capital offices to learn about our fund and listen to technical talks by the founders and technical experts of Parsely and Movable Ink.

Company startups running ahead of venture capital in the UK

The Equity Kicker

That tells me that the UK venture industry needs to grow 2.5x I pulled this chart from Saul Klein’s excellent presentation to Dublin Web Summit earlier this year. Venture Capital

Mobile Is Where The Growth Is

A VC : Venture Capital and Technology

If you look at any of the top web properties on comScore, Quantcast, Alexa or any other third party reporting service you will see that they all have been fairly flat over the first half of the year. You might think that all these big web services are flatlining. Web is flattish. I alluded to this in a post last week where I wished for an aggregated audience measurement service across mobile and web. And they don't work that well on the web.

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In Defense Of Free

A VC : Venture Capital and Technology

I would encourage folks to compete with them to keep the web, the mobile web, and the Internet free and open. mobile Venture Capital and Technology Web/TechI have written so much about free here at AVC that it should be called AVFree.

10 Reasons For Joining The New Startup Wave Now

Startup Professionals Musings

I can remember when creating a web site for eCommerce could easily require a million dollar investment. Now you can create a web site for almost nothing - and be on your way with your latest invention or personal services.

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Disqus2012 Launches

A VC : Venture Capital and Technology

Disqus 2012 - The Web's Favorite Discussion Platform from Disqus on Vimeo. There probably isn't a service on the web that has more of me invested in it than Disqus. I believe unconditionally in the vision of a web scale commenting community.

China Startups – The Gold Rush and Fire Extinguishers (Part 5 of 5)

Steve Blank

The downside is that with so much venture and angel capital available, investors have been willing to fund the 10 th Groupon clone. They’re used to using the web and increasingly the mobile web for everything, commerce, communication, games, etc.

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My Talk At LeWeb Yesterday

A VC : Venture Capital and Technology

mobile Venture Capital and Technology Web/Tech I'm back in the states this morning and up early (jet lag). The main purpose of my trip was to give a talk at LeWeb, which I did yesterday morning. Loic asked me to talk about the next ten years and what is going to happen.

Rethinking Mobile First

A VC : Venture Capital and Technology

I wrote the Mobile First Web Second blog post a few years ago. In that post, I talked about apps that were designed to be used on mobile primarily with the web as a companion. It has become a bit of a orthodoxy among the consumer social startup crowd to do mobile first and web second. and You have an entirely different onboarding story on the web. You can test easily, cheaply, and fast enough to make a difference on the web. Mobile first, web second.

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Duck Duck Go Passed 1mm Searches Per Day

A VC : Venture Capital and Technology

Venture Capital and Technology Web/TechI'm a bit late with this news about our portfolio company Duck Duck Go but I am super excited about it so I'm posting it anyway.

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Utilities vs Networks

A VC : Venture Capital and Technology

Venture Capital and Technology Web/TechIt's interesting to see a network, Instagram , starting to replace the iPhone's native camera application in many users' daily usage of their phones. I see this in my kids' behavior all the time. When they want to take a photo, they open Instagram, not the camera application. In the PC era, when applications got bundled into the operating system, they became instoppable. All the competitive apps got left in the dust.

Sound

A VC : Venture Capital and Technology

  Venture Capital and Technology Web/TechI met Alex Ljung , founder/CEO of SoundCloud a number of times and each time he pitched me on his business. Each time I said no. Then in the summer of last year, we met at Soho House London and he showed me one slide.

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No Battle Plan Survives The First Enemy Fire

A VC : Venture Capital and Technology

mobile Venture Capital and Technology Web/TechI have been using this line a lot lately. It is a bastardized version of Field Marshall Helmuth von Moltke 's "No plan of operations extends with certainty beyond the first encounter with the enemy's main strength." " I always encourage entrepreneurs to get on with the business of putting their product in the market.

The Twitter "Patent Hack"

A VC : Venture Capital and Technology

Many years ago now, my prior venture capital firm, Flatiron Partners, invested in a company called Thinking Media. Venture Capital and Technology Web/TechYesterday Twitter announced that they plan to amend the assignments agreements that they sign with their employees. They call this proposed amendment the Innovator's Patent Agreement.

Investors Beware: Today’s $100M+ Late-stage Private Rounds Are Very Different from an IPO

abovethecrowd.com

In a February 6th article in Business Insider , Allyson Shontell discovered that a mere four months after adding $150 million to a total of $330 million in invested capital, the founder and CEO disclosed to its employees that “we have spent $200 million and we have not proven out our business model.”

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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. A new report finds a surge in mobile deals, a drop in health care, and a shift from Massachusetts to New York.

Why Facebook Clearly Belongs in the 10X Revenue Club

abovethecrowd.com

Brief disclosure, Benchmark Capital has a minority position in Facebook as a result of the acquisition of FriendFeed, a company that was incubated in our offices. Facebook Internet IPO Uncategorized Venture Capital Web/TechAttached are my thoughts on the Facebook S-1 along with some quick stabs at valuation. I thought it would be useful to look at Facebook using the scorecard from our [.].

#startupstories

A VC : Venture Capital and Technology

They call this series #startupstories and currently there are three videos up on the web, one about pitching your company, one about building the team, and one about failing. Venture Capital and Technology

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The Dangerous Seduction of the Lifetime Value (LTV) Formula

abovethecrowd.com

advertising Internet Uncategorized Venture Capital Web/Tech LTVMany consumer Internet business executives are loyalists of the Lifetime Value model, often referred to as the LTV model or formula. Lifetime value is the net present value of the profit stream of a customer. This concept, which appears on the surface to be quite benign, is typically used to compare the costs of acquiring [.].

Bootstrapping

A VC : Venture Capital and Technology

With all the talk of massive amounts of cash sloshing around the web/mobile startup ecosystem (including things I've said recently), you would think that nobody bootstraps anymore. Venture Capital and Technology Web/TechBut that is not true at all. Last week my partner Albert blogged about our most recent investment in Behance. Behance was bootstrapped for its first five years.

Uber’s New BHAG: UberPool

abovethecrowd.com

This allows the company to “forward invest” capital to help these markets achieve lower consumer prices even faster. As with UberX price cuts, the company can use its substantial capital resources to forward invest in UberPool, increasing the likelihood of success.

Social-Mobile-LOCAL: “Local” Will Be The Biggest of the Three

abovethecrowd.com

android Internet iphone Uncategorized Venture Capital Web/Tech Local Mobile Social“Well I was born in a small town And I live in a small town Prob’ly die in a small town Oh, those small – communities” — Small Town, John Mellencamp While “Social-Mobile-Local” is certainly an overused buzz phrase, most of the attention has been placed on the “social” and “mobile” parts of the phrase. In social, [.].