David Teten

AUGUST 19, 2019

Since 2017 we’ve managed $3 million in revenue-based financing, which helps cash-strapped technology companies grow. In 2019 we partnered with several revenue-based lending providers, effectively creating a marketplace. “. According to John Borchers, Co-founder, Decathlon is the largest revenue-based financing investor in the US.

Revenue 60

Revenue Technical Review Software Review Equity 60

Steve Blank

JULY 15, 2010

VC’s invested their limited partners’ “risk capital” in a portfolio of startups in exchange for illiquid stock. Some of the old-line venture firms have changed their strategy, but some are still locked into last decade’s model while the partners are living off of their management fees and go through cargo cult like rituals.

Venture Capital 306

Venture Capital IPO Liquidity Event Entrepreneur 306

David Teten

DECEMBER 3, 2019

But in business, you want a lot of partners. In the private equity universe, most Partners have primary training as deal-makers, not as managers. See Bessemer Venture Partners’ A comprehensive guide to security for startups. Cobalt for General Partners helps GPs to optimize their fundraising strategy. 1) Manage the firm

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

David Teten

AUGUST 19, 2019

Does the traditional VC financing model make sense for all companies? 2018 also had the fewest number of angel-led financing rounds since before 2010. John Borchers, Co-founder and Managing Partner of Decathlon Capital, claims to be the largest revenue-based financing investor in the US. Absolutely not.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Both Sides of the Table

NOVEMBER 9, 2014

Generally speaking in venture capital financings the legal documents will specify that only “major investors” (a threshold set in the agreement – which can be $500,000 investor or more). How party rounds can burn you if it takes time to find your groove. There is a reason for this.

SEC 352

SEC Venture Capital Early Stage Cofounder 352

Both Sides of the Table

MAY 23, 2010

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. a loan) that is later converted to equity at the time of the next financing. It starts as a debt instrument (e.g.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Steve Blank

JUNE 1, 2011

Investors get board seats to assure themselves and their limited partners that they are duly informed about their investment. 3) An experienced board brings an extensive network of customers, partners, help in recruiting, follow-on financing, etc. From a VC’s point of view there are two reasons for board meetings.

Silicon Valley 300

Silicon Valley Business Model Venture Capital Balance Sheet 300

Both Sides of the Table

SEPTEMBER 1, 2016

Scott Kupor of A16Z responded with a comprehensive overview of valuation methodology in a post that while accurate feels more targeted at sophisticated Limited Partners (LPs) who invest in funds. Upfront Ventures has partnered with Andreessen Horowitz on several deals. Have Marc and Ben attracted great partners?

Jordan 264

Jordan LP Cofounder Limited Partner 264

YoungUpstarts

JUNE 13, 2020

Naturally, this comes with a long line of responsibilities, including the dreaded finances of salaries and taxes. But your business life and personal life aren’t one, so you have to stay on top of your personal finances, too, no matter how intertwined the two seem. General Partner. Limited Partner.

Bankruptcy 207

Bankruptcy Limited Liability Company Finance Limited Partner 207

Steve Blank

JUNE 1, 2011

Investors get board seats to assure themselves and their limited partners that they are duly informed about their investment. 3) An experienced board brings an extensive network of customers, partners, help in recruiting, follow-on financing, etc. From a VC’s point of view there are two reasons for board meetings.

Silicon Valley 273

Silicon Valley Business Model Venture Capital Balance Sheet 273

Eric Friedman

AUGUST 18, 2021

He is also co-founder and Managing Partner of Deciens Capital, an early stage investment fund. I think there are some real virtues to that, however, when I talk to my business partner, Ishan [Sachdev], about it, I use a slightly different metaphor: I talk about Jiro [Ono], Nobu [Matsuhisa], and Benihana. On Sushi and VC.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

Both Sides of the Table

FEBRUARY 25, 2019

Here are some observations I have from this exposure: If a company moves from strength-to-strength with predictable outcomes, easy financings, low staff turn-over, limited competitive threats then the composition of the board probably doesn’t matter as much. I practice what I preach. kind of like a board for a VC firm).

LP 269

LP Startup Burn Rate Stock Options 269

David Teten

JANUARY 11, 2020

They’re taking a $1m check from me, or giving $5m to me as a limited partner. Other coinvestors: Limited partners, other VCs who are coinvestors, private equity funds which are potential growth-stage investors, etc. Jourdan Urbach, Managing Partner of Brandt & Co. This is hosted by NFX. I welcome suggestions.

Social Media 60

Social Media Technical Review Media Private Equity 60

Agile VC

DECEMBER 6, 2012

As most of you probably know, the vast majority of VC firms make investments out of funds structured as limited partnerships with a 10yr life. 1) LP Bases Change Over Time – Most healthy VC firms tend to have stable relationships with the limited partners investing with them.

LP 178

LP Balance Sheet Differentiation Limited Partner 178

David Teten

FEBRUARY 7, 2012

From the point of view of a limited partner, the great challenge is scaling the business. Our finance team acts as an outsourced CFO. If you calculate the dollars under management and divide by the number of Partners, they have one of the lowest ratios of any VC in the US with over $100m in assets.

Early Stage 148

Early Stage Private Equity Portfolio Aggregator 148

Both Sides of the Table

OCTOBER 1, 2009

Sentiment is strong in personal portfolios and up commensurately with VC’s expectations that their last fund will now be worth something (and along with that increase the partners’ personal wealth). As of near the end of September 2009, we’re up 46% since the March 9th nadir (yes, I need to find a way to use one of my SAT words ; – ).

IPO 255

IPO Investment Bankers Venture Capital Marketing 255

Growthink Blog

MAY 23, 2011

The typical wisdom regarding the appropriate financing course for a new company goes as follows: 1. This venture capital financing - usually between $3 and $10 million - is the first of a number of rounds of outside investment over a period of three to five years. Venture capitalists Cut Tough Deals.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

K9 Ventures

MAY 14, 2011

They are still individual investors, they invest on a full-time basis as professionals, but they have funds with Limited Partners. The limited partners may themselves run the gamut from individuals, family offices, venture capital funds to institutional LPs. They have 4-10 partners who are investing on their behalf.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Accredited Investor 125

Babbling VC

JANUARY 7, 2011

I personally believe that one of the major drawbacks to venture capital in Europe is chronic under-financing and people skirt around this issue. Hence, financing rounds have been smaller (roughly a ratio of 5 to 1 when comparing US to EU). Even Dropbox and Etsy have done far larger rounds to finance their growth.

Finance 76

Finance LP Europe Valuation 76

The Equity Kicker

FEBRUARY 28, 2014

I’ve just re-read the a 2012 report by the Kauffman Foundation about the contractual relationship between venture capital funds (often called GPs, short for General Partner) and their investors (often called LPs, short for Limited Partners). Both of these seem very reasonable to me.

Venture Capital 108

Venture Capital Limited Partner Portfolio Partner 108

Berkonomics

AUGUST 10, 2023

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. There is no middle ground. Draconian terms?

Liquidity Event 116

Liquidity Event Initial Public Offering Dividend Valuation 116

www.paulgraham.com

APRIL 28, 2010

My relationship with my cofounder went from just being friends to seeing each other all the time, fretting over the finances and cleaning up shit. 5 ]Some VCs seem to understand technology because they actuallydo, but thats overkill; the defining test is whether you can talkabout it well enough to convince limited partners. [

Technical Cofounder 110

Technical Cofounder Startup Cofounder Founder 110

The Startup Magazine

MARCH 22, 2019

Investment firms are staffed with analysts, partners, and others to ensure deals are soundly vetted. Venture capitalists act as limited partners, providing help to build successful companies in a market they have deemed has potential. Small business loans and crowdfunding will also finance a start-up business.

Angel Investor 153

Angel Investor Venture Capital Accredited Investor Equity 153

Both Sides of the Table

FEBRUARY 4, 2016

.” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. They point to some widely known facts: financings & valuations are up massively over the past 7 years and non-VC money has entered the system.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. This is uncharted territory.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Berkonomics

JUNE 15, 2017

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. Taking in angel or venture money requires a setting of an entrepreneur’s expectations that may come as a shock at least at first.

Liquidity Event 97

Liquidity Event Initial Public Offering Dividend Valuation 97

Feld Thoughts

JUNE 19, 2013

Often, entrepreneurs don’t build a board until they are forced to by their VCs when they raise their first financing round. And they have a fiduciary responsibility to their own limited partners. At the end of the day, your board is not your friend.

Early Stage 143

Early Stage Limited Partner Global Entrepreneur 143

Steve Blank

MARCH 22, 2009

Their VC firm, In-Q-Tel , has been in business for 10 years, and like most VC firms they have an annual event where they show off their new portfolio companies to their limited partners and other VC partners. We witness similar behavior in corporate finance. And I could have sworn they all had the same badge.)

Silicon Valley 270

Silicon Valley Thailand RSS Venture Capital 270

David Cohen

SEPTEMBER 13, 2019

Further, I thought it would also be appreciated by her more sophisticated high net worth investors, because many of them will have personal financing reporting prepared quarterly by a family office or personal accountant or tax planner. So, like any other engineering minded person would do, I decided to gather some data.

Management 90

Management Limited Partner .Net Finance 90

This is going to be BIG.

SEPTEMBER 19, 2012

While my company may not have lasted, and even though I swore to myself that I wouldn't do another startup--this recently launched new venture is moving forward with the help of some fantastic partners. million of limited partner commitments--a huge and exciting first step.

LP 112

LP New York City New York Chad 112

ReadWriteStart

JUNE 13, 2011

Investors get board seats to assure themselves and their limited partners that they are duly informed about their investment. An experienced board brings an extensive network of customers, partners, help in recruiting, follow-on financing, etc. From a VCs point of view there are two reasons for board meetings.

Silicon Valley 117

Silicon Valley Balance Sheet Metrics Early Stage 117

Babbling VC

NOVEMBER 4, 2011

One partner may have a different appetite for risk in comparison to another. I've decided to part ways with my partners. My partners will continue to manage the second and third fund but have put off raising a new one. They will pool money amongst "friends and family" as well as their own capital to finance new deals.

Portfolio 70

Portfolio Limited Partner Cofounder Early Stage 70

Berkonomics

JANUARY 27, 2010

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. Taking in angel or venture money requires a setting of an entrepreneur’s expectations that may come as a shock at least at first.

Liquidity Event 67

Liquidity Event Initial Public Offering Dividend Valuation 67

Austin Startup

JULY 23, 2010

The company announced that is just completed $13M in financing from existing investors SMH Private Equity Group, ABS Ventures, Austin Ventures, and Trellis Partners. These are some things to think about when pricing products dynamically, but I’m sure Zilliant’s products are not just focused on realtime web.

Balance Sheet 67

Balance Sheet Private Equity LP IPO 67

Feld Thoughts

JUNE 25, 2015

” Each of our funds is $225 million, we have four partners and no other investment staff, and we work out of the same office we’ve worked out of since we started in 2007. .” These deeply held beliefs tangibly define our values and give us a frame of reference to operate.

Syndication 70

Syndication Syndicate Limited Partner Finance 70

ithacaVC

JULY 10, 2013

Here is the good news: if you read my prior posts and Fred’s post, I think you are about 99% of the way there in solving any mystery behind startup valuations for early stage financing rounds (i.e., Series Seed or Series A). Enjoy solving the mystery. Dealing with VCs Startup Life'

Valuation 49

Valuation Startup Limited Partner Early Stage 49

ithacaVC

FEBRUARY 23, 2012

Luckily, I am not in charge of the internal finance function at our fund. Some VC firms use the art of Level 3 inputs to mark up their valuations, which has a tendency to make limited partners happy. It is the time of year when VC firms do year end valuations for their portfolio company holdings.

Valuation 49

Valuation Institutional Investors Marketing Down Round 49