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Are Business Plans Still Necessary?

Both Sides of the Table

Many of these businesses were what First Round Capital called FNACs (features, not companies – this acronym has always stuck with me). Great product managers who are not great business people still often fail. But they should also be the map and the Lingua Franca of your management discussions. portfolios.

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Why Was Winter in Venture Capital Funding so Short?

Both Sides of the Table

billion in venture capital funds with one A-round fund and one late-stage fund. In case you’re keeping score at home — that’s approximately the size of 65 US seed-stage funds managed by one company. Baidu alone raised $3.2 Those two investments represent the equivalent of another 32 US seed-stage funds just in two deals.

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The Loneliness of Success that Nobody Talks About

Both Sides of the Table

I managed the pressure but it lead me to gain weight, drink too much, work all the time and internalize the pressure that if I failed it would be very public and would affect the lives of everybody who joined my startup in the belief we would do something big together.

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What Makes a Great Independent Board Member?

Both Sides of the Table

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. VCs most certainly do have skin in the game.

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How VCs Make Money….Hopefully

ithacaVC

That means that it has capital commitments from investors of $100mm. Capital is called when needed for investment, fund expenses or management fee. And, VC1 does not reinvest capital returned (with very few limited exceptions) – VCs are not hedge funds! salary paid from management fees.

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A Time for Change in Venture Capital

K9 Ventures

PrivateEquityOnline: Bankrupt WaMu Parent Defaults on Capital Call. Several of these funding sources have managed asset allocations, meaning that their investments in venture capital are supposed to be a certain percentage of their portfolio. Deferred/Unmet Capital Calls : Portfolios have taken a beating in this market.

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11 Things I've learned from running a micro VC in the last year

Hippoland

In many cases, fund managers invest 1-5% of the fund size. They want you as a fund manager to be incentivized to make good investments, because you are staking your own cash too. And then later, when the fund needs money, the fund does a capital call. Typically, capital calls are done over the course of 3 years.

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