Remove Finance Remove Hiring Remove Lean Remove LP
article thumbnail

What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

Consumers pulled their money out of these risky investments, but when LPs make commitments to VC funds they make 10-year, legally binding commitments. So as of 2008 total LP commitments were still at nearly $250 billion. I was at dinner with a large LP and mentioned that I had heard the industry would shrink by 50%.

LP 311
article thumbnail

Is Going for Rapid Growth Always Good? Aren’t Startups So Much More?

Both Sides of the Table

Lean” is great in the early days but if you discover an attractive market opportunity you need to get “fat” really quickly or somebody else will. Instant growth = huge valuation from follow-on investors = big VC mark-up on our quarterly reports = LP interest. Grow or die. It is VC math, like it or not. .”

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Investors Updating Their Investors: Inside Homebrew’s First Annual LP Meeting

Hunter Walker

Last week we held our first annual LP meeting, when venture funds get their investors together with updates on operations and results. Counsel : Being helpful in a structured way – from frequently 1:1s with founders to ‘on demand’ help closing hiring candidates and so on. Commitment : Yeah, that tattoo.

LP 97
article thumbnail

Chronic Under-financing of EU Start-ups Driven by Mindset

Babbling VC

I personally believe that one of the major drawbacks to venture capital in Europe is chronic under-financing and people skirt around this issue. We keep hearing about lean start-ups and how much costs have dropped when launching and growing a business. Even Dropbox and Etsy have done far larger rounds to finance their growth.

Finance 76
article thumbnail

Applied Venture and the inexorable rise of value-add VC

The Equity Kicker

This is what brings us to the second big difference: the cost of Applied Venture is too large to finance from a standard VC management fee. . Different funds finance the cost of these teams with a differing weighting of asking portfolio companies to pay for services, larger than normal management fees, and reduced compensation for partners.

article thumbnail

VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP. We are also seeing technology evaluation as an increasingly important part of LP operational due diligence.

article thumbnail

Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

I believe some VCs have entered the early-stage market as simply an option on future financing rounds. The LP Community Hasn’t Yet Caught Up. As I’ve started to get to know the other side of the VC industry lately (the people who invest in VC funds or “LPs&# ) one thing has occurred to me.