View from Seed

JUNE 11, 2019

At this point, founders find themselves in a luxurious situation of being able to build the best possible syndicate. So really take your time to do your due diligence on the investor (both the individual and the firm). It’s not necessary to nail down every element of your syndicate simultaneously. So too few is not great.

Syndicate 202

Syndicate Syndication Seed Stage Lead Investor 202

David Teten

SEPTEMBER 6, 2018

Just as with any company, the most important issue is the team; see “ How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm “ . See my summary on how lead investors think about building out their syndicate. . 6) Due diligence. Another critical design consideration is your tech stack.

Technical Review 60

Technical Review Private Equity Management Cap Table 60

David Teten

SEPTEMBER 6, 2018

Just as with any company, the most important issue is the team; see “ How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm “ . See my summary on how lead investors think about building out their syndicate. . 6) Due diligence. Another critical design consideration is your tech stack.

Technical Review 60

Technical Review Private Equity Management Cap Table 60

View from Seed

MAY 29, 2019

Historically, seed rounds were syndicated among several different firms. Today, we are seeing less syndication of seed rounds and sharper elbows among many of the funds in the market. Instead of broadly syndicated rounds, we are seeing much more competition for fewer slots. Why Is Seed Investing Becoming More Sharp Elbowed?

Syndicate 267

Syndicate Syndication Cofounder Cap Table 267

David Teten

JANUARY 19, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. Of the Inc. 5000 companies, only 6.5% return cap.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

David Teten

SEPTEMBER 23, 2017

PEVCTech is partnering with Blue Future Partners to run the first large-scale survey of VCs’ technology stack. Johann Kratzer of Blue Future Partners , a fund of funds, observed, “The majority of the hundreds of funds we’ve diligenced rely predominantly on their relationships to source deals. Greylock Partners.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

David Teten

SEPTEMBER 6, 2015

She had so much insight to share that we broke the interview into two parts, 1) Corporate Venture Capital and more broadly, 2) How the Fortune 500 Can Buy, Invest and Partner with the Innovation Economy (coming soon). . Others follow independent financial lead investors and most require that independent investors be part of the syndicate.

Venture Capital 60

Venture Capital Balance Sheet Technical Review Portfolio 60

www.paulgraham.com

APRIL 28, 2010

Some angel investors join together in syndicates. The fund managers, who are called"general partners," get about 2% of the fund annually as a managementfee, plus about 20% of the funds gains. Not all the people who work at VC firms are partners. Its the partners who decide, and they view things witha colder eye.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

David Teten

JANUARY 11, 2020

Many investors including me spend most of our day doing the same things people have always done in our job: in my case, due diligence, deal execution, etc. They’re taking a $1m check from me, or giving $5m to me as a limited partner. Jourdan Urbach, Managing Partner of Brandt & Co. I welcome suggestions.

Social Media 60

Social Media Technical Review Media Private Equity 60

Genuine VC

JULY 26, 2010

Micro VCs are notorious for building large and friendly syndicates. While traditional VCs sometimes have a love/hate relationship with their syndicate partners (often depending on how well their mutual portfolio companies are performing), it seems as though in the Micro VC arena all of the players speak and act like best friends.

Syndicate 128

Syndicate Syndication Due Diligence Seed Stage 128

Genuine VC

OCTOBER 2, 2012

But it also includes legal due diligence, rounding out the round with additional syndicate investors (often angels in seed rounds), figuring out allocations, as well as sometimes even (but hopefully not) additional business diligence for the institutional venture investors.

Term Sheet 162

Term Sheet Founder Vesting Due Diligence Syndicate 162

View from Seed

OCTOBER 22, 2015

We’ve written before on how to research partners , how to pitch the right investor at a given firm, and how to raise seed capital , generally speaking. What I mean is that after a first meeting with a single partner, that partner might say “Great discussion. I’m going to discuss with our team here and then get back to you.”

Term Sheet 120

Term Sheet Due Diligence Seed Stage Seed Capital 120

David Teten

JULY 12, 2017

First, a formal definition: According to Capital Dynamics , “Co-investments are direct investments in a company made alongside and on the same terms as a lead [General Partner]. We see our potential coinvestors in four primary buckets: 1) HOF Capital ’s own limited partners. 2) Investors with very specific value-add. Economic benefit.

Syndicate 60

Syndicate Syndication Institutional Investors LP 60

David Teten

JULY 10, 2017

. – If an employee wants to invest at least $25K in a private company, she can nominate it to the Syndicate VC (“SVC”). – SVC conducts its own due diligence and invests alongside the angel. This could be a firm-provided pool of capital, and/or an outside VC which has a close relationship with the firm.

Employee 60

Employee Balance Sheet Syndicate Syndication 60

Rob Go

JULY 17, 2014

On #2, we have been fortunate to collaborate with a wide group of exceptional entrepreneurs, coinvestors, and limited partners. Prospective LPs evaluating NextView tend to focus their due diligence on conversations with these folks as well as other trusted participants in the startup community that are likely to have a POV on us.

Seed Stage 69

Seed Stage Early Stage Due Diligence Liquidity Event 69

Rob Go

OCTOBER 21, 2013

This is good because when you get a “yes” from a seed fund, you are more likely to have a partner who has thought deeply about your business and be in a better position to help. Some partners at larger funds just have tons of experience to draw from and enough political capital in their firms to make stuff happen quickly.

Seed Stage 53

Seed Stage Due Diligence Early Stage Syndicate 53

Agile VC

MAY 26, 2011

The terms and valuation for both offers were comparable and when the team debated which path to choose, we all agreed both firms would have made good partners. We three partners are working hard. Great to see you had such a good partner to start with. My partner @ LeeHower looks back: [link] 5 days ago Search.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

David Teten

FEBRUARY 3, 2014

The venture capital industry is continuing its evolution from an upside-down pyramid (typically 3-10 Partners, plus some administrative support) to a traditional hierarchical pyramid. Detailed due diligence. Summit Partners and TA Associates have leveraged their origination programs to move into later stage buyouts.

Private Equity 114

Private Equity Venture Capital Technical Review Equity 114

Rob Go

JANUARY 17, 2017

In the last three investments I’ve made, there has either been a lifecycle VC involved or one was interested but didn’t end up being part of the syndicate. Usually, the investment process is very fast – you don’t need to do a full partner meeting, they don’t take a board seat, the VC is price insensitive, etc.

Due Diligence 28

Due Diligence Seed Stage Syndicate Syndication 28

David Teten

MARCH 14, 2018

My Partners at HOF Capital are younger than I am, which means that we have a half-century horizon for the franchise we are building. – Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. So we think about scaling a lot.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60