Agile VC

JULY 11, 2012

How do you deal with a severely uneven distribution of investment success between individuals or groups of partners? Like any other form of diluting your focus… it occasionally works, but usually doesn’t. What’s Your Favorite Future?

Silicon Valley 240

Silicon Valley Carried Interest Cofounder Boston 240

Lightspeed Venture Partners

SEPTEMBER 21, 2013

With his back to the wall and about to run out of money, his first priority should have been runway extension, not dilution from new capital. pre money valuation seems big, the actual implication is only between 5% and 10% dilution since the round size is small. But eventually two syndicates emerged.

Pre-Money Valuation 167

Pre-Money Valuation Valuation Dilution Distribution 167

David Teten

JANUARY 19, 2021

Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate. Early liquidity. Equity VC is a “get rich slow” business.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

View from Seed

JUNE 30, 2015

Or maybe you are just a bit off on your product, or else you needed more experimentation to get to the right strategy for distribution. You may actually need to raise a few financing rounds just to get to a series A, so think about the syndicate you are constructing (will they be loyal to you?) We’re not at normal yet.

Seed Stage 120

Seed Stage Syndicate Syndication Dilution 120

Austin Startup

MARCH 7, 2021

In 2019 and 2020, we saw hundreds of millions of dollars in non-dilutive funding go to Texas startups, most of which had never worked with the government before. In short, the first wave of internet companies were widely distributed and brought people online (AOL in Virginia, Microsoft in Albuquerque and Seattle, Dell in Austin, etc.)

Texas 90

Texas San Antonio Houston Dallas 90

Austin Startup

AUGUST 1, 2017

By driving the valuation up, you’re usually not reducing your dilution in the round; you’re just increasing the size of the check they need to write in order to get to their desired %. This is the distributed portfolio mindset; i’ve got stakes in a lot of companies, so it’s OK if most fail, as long as I get at least one unicorn.

Liquidation Preference 48

Liquidation Preference Common Stock Valuation Silicon Valley 48

Professor VC

JUNE 20, 2011

The business model (OEM through broadband and home security companies for mass distribution) if not specific product functionality has remained largely the same. One truth of start-up financing is that it generally takes twice as long and twice as much money to accomplish your milestones. So what does this all mean.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28