View from Seed

OCTOBER 29, 2014

Most folks reading this will know that many startups were built in part with the help of venture capital. However, many folks probably don’t think about exactly where those VC dollars that help fund startups actually come from. So I wanted to dive a little deeper into what I call the startup capital supply chain.

LP 335

LP Private Equity Institutional Investors Venture Capital 335

Agile VC

OCTOBER 29, 2014

Most folks reading this will know that many startups were built in part with the help of venture capital. However, many folks probably don’t think about exactly where those VC dollars that help fund startups actually come from. So I wanted to dive a little deeper into what I call the startup capital supply chain.

Venture Capital 279

Venture Capital LP Private Equity Institutional Investors 279

Women Entrepreneurs Can

MAY 9, 2019

Early on in any startup is more often than not filled with the unknown. There’s a ton of questions, but one thing is for certain: it is thrilling to see your little startup start to come into its own. Venture capitalists are used only after a startup has begun to show a significant amount of revenue. You Have Positive Cash Flow.

Programming 40

Programming Sweat Equity Startup Private Equity 40

Hunter Walker

MARCH 30, 2023

You’re a big enough advertiser or business partner to have an account manager. The conversation evolved to one about how our industry (venture, startups, tech in general) could better message about the positive role we play in the economy. You went to grad school with the COO. I quipped that besides good phrasing we needed actions too.

United States 70

United States Carried Interest Engineer Viral 70

ithacaVC

JANUARY 10, 2012

Managing Partner/General Partner (I have seen some with Managing Directors too like an investment bank): top dogs that run the shop and own most of the carried interest. Other staff like a controller or CFO; marketing coordinator; investor relations manager; and general counsel. It carries cache.

Partner 49

Partner Carried Interest Caching Harvest 49

Agile VC

NOVEMBER 13, 2012

The IPO market remained closed to IT startups, but there were big acquisitions like Google buying YouTube for $1.65B (Fall 2006) and late stage financing rounds for companies like Facebook (Microsoft round at $15B valuation in Fall 2007). So at a fund level (e.g. typically, which in most cases would to >20% IRR.

LP 154

LP Portfolio Venture Capital IRR 154

ithacaVC

MAY 10, 2011

Capital is called when needed for investment, fund expenses or management fee. Now, there are interesting ways for the GP to fulfill its portion of a capital call using “fee waiver”, but I am not going to address that here. Fourth, GP1 is entitled to a carried interest in fund profits.

Carried Interest 51

Carried Interest Ratchet Limited Partner Due Diligence 51

Hippoland

JULY 24, 2018

more on this later) Much like running a product-startup, you’re your own boss, so you sometimes end up working really hard and at all hours depending on where you are in your fund life cycle. In many cases, fund managers invest 1-5% of the fund size. And I enjoy working with founders immensely. And this makes sense.

Salary 48

Salary Capital Call Bootstrapping Cofounder 48

Hippoland

JULY 24, 2018

more on this later) Much like running a product-startup, you’re your own boss, so you sometimes end up working really hard and at all hours depending on where you are in your fund life cycle. In many cases, fund managers invest 1-5% of the fund size. And I enjoy working with founders immensely. And this makes sense.

Salary 48

Salary Capital Call Bootstrapping Cofounder 48

K9 Ventures

NOVEMBER 30, 2008

In return for the operational role the GPs play, their firm receives a Management Fee. Industry averages for the management fee are expected to be around 2.5% In addition, there is a performance incentive — the Carried Interest or Carry. The carry is typically around 20% of any gains on the fund.

IRR 48

IRR Venture Capital LP Early Stage 48

Steve Blank

OCTOBER 29, 2009

These angels who were all working in their day jobs at various financial institutions, would invite startup electronics companies up to San Francisco to pitch their deals and they would invest an average of $75 -$300K per deal.

Silicon Valley 129

Silicon Valley SBIC San Francisco RSS 129

This is going to be BIG.

JUNE 29, 2020

4) We need to push the Federal Government to close the carried-interest tax loophole —but we should do it in such a way where the localities where it gets collected get a share of the income from it. There’s no reason for private equity managers, hedge fund investors or VCs to pay less taxes as a percentage than teachers.

New York 153

New York Vermont Carried Interest New Jersey 153