David Teten

DECEMBER 3, 2019

In liquid markets, most of the calories expended on technology and analytics are focused on trade selection, or “ origination ”. I use another live Google doc to maintain my database of companies I’m marketing to other VCs. 2) Market . Many tools designed for B2B marketing in general are also relevant to investors.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Haystack

JULY 20, 2018

Yes, the concentration of entrepreneurial founding and management talent is here in the Bay Area, but so too is lots of private money, more and more large platforms which continue to grow in market share. Another firm linked closely to USV — Foundry Group in Boulder — has also been investing with an eye for geographic diversity.

San Francisco 116

San Francisco Silicon Valley Seattle Venture Capital 116

Both Sides of the Table

MARCH 3, 2013

Let me start by saying that Clayton is one of the most influential people on my thoughts about markets that led to both the concept behind my first startup and my main theses in investing. In a discussion I had with Fred Wilson at the Invesco LP meeting Fred said the same about the influence of Clayton.

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

Both Sides of the Table

FEBRUARY 6, 2019

Yes, VC / Startup Funding is up Massively If you look at how much VC firms have raised from Limited Partners (LPs) over the past 2 decades you’ll see that we’ve returned to a level that we haven’t seen since 1999. Companies are raising billions of dollars in the private markets and the valuations are enormous PRIOR to the IPO.

Venture Capital 292

Venture Capital IPO Mezzanine Early Stage 292

David Teten

DECEMBER 12, 2017

As a globally focused LP in early stage VC funds, we at Blue Future Partners have observed a growing trend of firms investing substantially in software tools, whether developing proprietary solutions or adopting off the shelf tools. But what tools are they using themselves to automate their own processes? Some 33% do not use any newsletters.

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

David Teten

JANUARY 19, 2021

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. On average, founders own just 43% of equity by Series B , declining thereafter. Volatile, uncapped. Early liquidity.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Agile VC

JULY 24, 2013

I was having breakfast this morning from someone I know from the LP world. We were talking about what’s “working” in the broader VC ecosystem and this person expressed their enthusiasm that today there are a range of different models that are producing attractive returns for LPs.

Valuation 200

Valuation Early Stage Distribution LP 200

View from Seed

DECEMBER 11, 2019

However, as we’ve seen from recent salient stories , these can be ephemeral and don’t end up mattering in the end… they’re really just approximations based on the market for buying a piece of a company’s cap table, not buying the whole thing or making it public. Venture is a field with a power-law distribution of outcomes.

Venture Capital 204

Venture Capital Cap Table Partner LP 204

This is going to be BIG.

MARCH 14, 2019

It started out with initial investment size, pricing, and outcome behavior for each deal and then it made a prediction around the distribution of outcomes. If you’re not actually modeling this out with a spreadsheet, I don’t know how you can look an LP in the face and say this. How will you provide it across 30 investments?

LP 99

LP Due Diligence Distribution Portfolio 99

VC Adventure

MAY 5, 2022

Interim IRR is much too easily manipulated and in some cases incents behavior counter to the long-term benefit of LPs (and GPs). A few examples: In an up market, IRR values quick capital deployment. Traditionally LPs have viewed this as positive. management fee). Some of those companies will be successful. Many will not.

IRR 116

IRR Metrics Valuation LP 116

ithacaVC

DECEMBER 14, 2011

Specifically, “too much” liquidation preference (I will use “LP” for liquidation preference). As most of you probably know, LP is one of the fundamental economic attributes of preferred stock that preferred shareholders enjoy. Series B round = $5mm and the Series B preferred stock is participating with a 2x LP.

Liquidation Preference 49

Liquidation Preference LP Preferred Stock Liquidity Event 49

This is going to be BIG.

MARCH 3, 2019

How then, do you expect to make money when you’re buying on the public market? First, price discipline doesn’t work in overly competitive markets. When there are too many funds in a market, keeping your entry price reasonable is going to get you shut out of a lot of deals. Everyone knows the answer to that. Buy low, sell high.”

Portfolio 110

Portfolio Burn Rate LP Distribution 110

Hunter Walker

SEPTEMBER 2, 2022

It looked more like a market map than a competitive landscape slide. And the POS (point-of-sale) in all markets outside of SF were antiquated, closed systems, that the owners didn’t want touched because last time someone tried to add a new SKU the “3” key stopped working for 6 months. It was our flywheel. Thanks Logan!

Chicago 111

Chicago Venture Capital Miami Employee 111

Hunter Walker

MAY 18, 2015

They provide assistance to Californians in building a vibrant, successful and inclusive society, distributing more than $1.5b These managers sit in our Privates bucket and are therefore expected to beat the public markets by at least 4.5%. The James Irvine Foundation joined us in Fund I and has been a great partner since.

LP 48

LP Portfolio Early Stage Institutional Investors 48

YoungUpstarts

OCTOBER 23, 2017

by Joe Duncan, founder of Duncan Capital LP. This combinatorial model works because it’s diversified, can best withstand bear markets, benefits from technological synergies, and it’s the mix of products and services clients value. Fintech is triggering a profound rethink for financial institutions, from retail to investment banking.

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

Professor VC

DECEMBER 8, 2015

Luckily, Google was one of the 150 and did ultimately return the fund assuming the LP was smart enough to hold the stock after distribution. It takes time for the business to catch up to these market expectations and valuation. At the IPO, Musk held a 14.2% stake vs Thiel's 5.6% (Sequoia Capital had 10.7%).

Merger 28

Merger LP IPO Redemption 28

View from Seed

AUGUST 17, 2021

New funds have formed, old market leaders are gone or walking dead. But the reality is that the more interesting the market, the more likely there is to be rapid and unpredictable change. But the reality is that the more interesting the market, the more likely there is to be rapid and unpredictable change. Patience is a virtue.

IRR 205

IRR Dilution Founder Portfolio 205

View from Seed

AUGUST 17, 2021

New funds have formed, old market leaders are gone or walking dead. But the reality is that the more interesting the market, the more likely there is to be rapid and unpredictable change. But the reality is that the more interesting the market, the more likely there is to be rapid and unpredictable change. Patience is a virtue.

IRR 156

IRR Dilution Founder Portfolio 156

Start Up Blog

APRIL 29, 2013

An era defined and dominated by the few who could afford the factories, the media and the distribution systems. Startups are lucky that they can’t afford research, so they test in market and land upon on ideas that would never fly based on what we think or what focus groups would respond with. And now it is over.

Uruguay 123

Uruguay Technical Review Vertical Las Vegas 123

View from Seed

AUGUST 17, 2021

New funds have formed, old market leaders are gone or walking dead. But the reality is that the more interesting the market, the more likely there is to be rapid and unpredictable change. But the reality is that the more interesting the market, the more likely there is to be rapid and unpredictable change. Patience is a virtue.

IRR 136

IRR Dilution Founder Portfolio 136

Both Sides of the Table

JUNE 29, 2011

This will continue while we’re in a tech bull market and I predict will wane when we’re not. I believe some VCs have entered the early-stage market as simply an option on future financing rounds. In a bull market many players see drift in their activities. The LP Community Hasn’t Yet Caught Up.

Venture Capital 296

Venture Capital Software LP Early Stage 296

Both Sides of the Table

MAY 25, 2013

As you can see from the chart their data suggests there are about $25 billion of VC distributions per year in the US. But as an LP you can’t count on that any more than VCs can. The goal of an LP is to get into the top decile. It’s a market, after all. The top 2% do not drive 98% of the returns.

LP 374

LP Later Stage IRR Term Sheet 374

Feld Thoughts

JULY 28, 2014

On paper, only one is in positive return territory as a fund, but the SBIC leverage is a substantial negative factor for the LP investors in that particular fund. As a partner in one of the most visible VC firms in Colorado and an LP in many of the Colorado VC firms, I’ve never heard from Matthew or anyone from the SBIC.

SBIC 144

SBIC Venture Capital Colorado SBA 144

Both Sides of the Table

FEBRUARY 6, 2017

Yet as we enter February 2017 the VC funding markets are booming, Snap, Inc has filed for its IPO, AppDynamics was just purchased for $3.7 Chinese Foreign Direct Investment (FDI, excluding real estate) skyrocketed in 2016 as Chinese investors seek diversification out of their domestic markets. This chart surprised me the most.

Venture Capital 150

Venture Capital Saudi Arabia Kuwait Burn Rate 150

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. These mutual funds “mark-to-market” every day, and fund managers are compensated periodically on this performance. With the public markets down, these groups began writing down Unicorn valuations. The market favors growth over profits.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

David Teten

SEPTEMBER 2, 2017

I thought it would be helpful to put together some notes on market norms and issues to consider in negotiating a partnership at an institutional investment firm. So I would start by sharing with the fund an institutional LP due diligence checklist , and ask them to share their data room with you. – Tax distributions.

Private Equity 60

Private Equity Venture Capital Equity Partner 60

This is going to be BIG.

JULY 30, 2015

One of the first things I did when I joined the venture asset class as a lowly institutional LP analyst in 2001 was to build the VC fund cashflow model. If you could return investors nearly triple their money and mid 20's returns consistently, compared to the 8% long term return in the public equities market, they'd more than accept that.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

Startup Lessons Learned

MAY 4, 2021

The company's market cap at the time of their entry into the public markets topped $100 billion dollars. Can institutions be totally distributed or should they be rooted and loyal to a certain community or geography? You just keep doing that until you find product market fit. ER : And the rest, as they say, is history.

IPO 113

IPO Cofounder Technical Review Government 113

Both Sides of the Table

APRIL 21, 2020

Harry was gracious enough to invite me back so this past week we recorded an episode discussing the current market environment. Nobody will be immune because in a bull market executives are paid to “innovate” so they sign software contracts and run projects. If you’re a clear “market winner” like Stripe, Robinhood or Airbnb.

Marketing 263

Marketing Valuation Churn Rate Balance Sheet 263

Austin Startup

JUNE 26, 2019

While the journey of JuiceBox Hero is coming to a close, we know that our small but mighty team’s commitment to innovation for women, families, and under-represented markets is far from over. The Skinny: Two years ago I embarked on a mission to bring to market a modern way for parents to find daycares and preschools. We did that?—?and

Silicon Valley 54

Silicon Valley Startup B2C Sweat Equity 54

David Teten

MARCH 18, 2021

The modal VC thesis is: “We invest in great teams addressing large markets with disruptive solutions” Who invests in lousy teams addressing tiny markets with outdated solutions? Foundry Group, investing primarily in “ Software and Internet ”, follows six major themes, e.g., Human Computer Interaction (HCI) or Distribution.

Technical Review 78

Technical Review Cofounder Venture Capital Deal Flow 78