Both Sides of the Table

FEBRUARY 24, 2019

When an entrepreneur takes on investors who take equity (i.e. While it’s true that they are investing LP money from a fund, it’s also true that the VCs are required to write large checks into their funds so every time they do a “capital call” (request money from an LP to fund you) they are also having to wire their own money into the deal.

Warrant 187

Warrant LP Cofounder Founder 187

ithacaVC

OCTOBER 10, 2012

. - If one considers NEA a Silicon Valley firm (I know they are headquartered in Baltimore but they have a very large and successful west coast practice), the top five funds raised are in San Francisco and represented 55% of the capital raised. The average size of fund raised in 3Q12 was $94M, although the median was $160M.

San Francisco 53

San Francisco Baltimore Nashville Silicon Valley 53

Babbling VC

JANUARY 7, 2011

You could say the entrepreneurs aren't thinking big enough and hence aren't selling a vision worth financing with larger rounds. Therefore, it's an illusion to think that you can get by raising far less nowadays if you want to deliver the necessary returns venture capital calls for. . This I believe also comes down to mindset.

Finance 76

Finance LP Europe Valuation 76

Pascal's View

MARCH 19, 2010

This is the last in our series of 10 frequently asked questions from investors in venture capital partnerships. Susan Mangiero , CEO of Investment Governance’s Fiduciary X , asked me the following: Question: I’ve read that some GPs are suing LPs for not making capital calls. Why throw more money their way?

Limited Partner 28

Limited Partner Government LP Venture Capital 28

Venture Chronicles

JULY 16, 2010

I do want to devote some of this post to defending the VC business on one important point, there are times when a company is not deserving of continued funding and/or should be shut down to preserve investor capital. In normal times the term sheet and due diligence process all but guaranteed the investment as far as the startup was concerned.

Due Diligence 28

Due Diligence Term Sheet Limited Partner LP 28

Altgate

MARCH 8, 2009

I say ecosystem as opposed to industry because it is not just the VC funds themselves that are imploding, instead the collapse includes entrepreneurs and startups that were funded by VCs, angel investors, service providers like lawyers, bankers and accountants as well as limited partner investors in VC funds. So what to do? Also, the $1.5

Later Stage 34

Later Stage Early Stage Venture Capital Portfolio 34

Pascal's View

MARCH 17, 2010

Answer: The options here are limited, and they are (1) the LP can try to sell their interest, including the obligation to fund future capital calls, to a fund that acquires secondary interests. The good news is that a robust market exists for such interests in venture capital partnerships today; or (2) default.

Limited Partner 28

Limited Partner Government LP Partner 28

thestartuplawyer.com

FEBRUARY 24, 2010

Entrepreneurs often believe their startup company faces legal threats from only external sources. Even so, I believe the negative experience can end up producing a better entrepreneur if he or she applies lessons learned to current and future startups. He obviously never launched a startup and got shafted by a co-founder.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

Professor VC

JANUARY 20, 2009

million for the year, which is the first time it has been below $5 million since 2001, a sign that capital efficiency will be even more important than it has. Of course, the most important funding statistic to an entrepreneur relates to one specific company, and whether there is sufficient capital available to build and scale his business.

Venture Capital 28

Venture Capital Silicon Valley San Jose Bootstrapping 28

Gregg Fraley, Author of Jack's Notebook

MARCH 27, 2012

Putting politics aside, the passage of the law means that small business people and social entrepreneurs will be able to use the web to raise money from large groups of small investors. Call it democratization of the fund raising market, call it free enterprise, call it access to capital, call it what you will, but it is a trend.

Web 110

Web New York Washington Government 110