Both Sides of the Table

MAY 24, 2021

This “overnight success” was first financed in 2004. LPs Haven’t Yet Grokked the Long Game While the VC community realized 5ish years ago that short-termism in venture capital didn’t make sense and has capitalized on the scale advantages of letting companies go long, the LP community by and large hasn’t totally grokked this.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Both Sides of the Table

JULY 23, 2014

At the other end of the spectrum large funds have gotten even larger in the past few years which has massively increased the amount of consolidation in our industry as 66% of LP money into venture is now concentrated in late-stage or full-cycle VCs. The “big boom” in startup financing started around March 2009?—?more Why is this?

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

YoungUpstarts

OCTOBER 23, 2017

by Joe Duncan, founder of Duncan Capital LP. This is a major issue and the role of data analytics will continue to expand as per a January article from Global Banking and Finance Review which cited that the world’s top investment banks were fined a total $43 billion over the last seven years for failures in customer reporting.

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

Feld Thoughts

MARCH 24, 2017

In general, these investments were rarely competitive at the time of their first financing. As an LP, I’ve had the good fortune to be an investor in many funds, including some exceptional ones. This investment generates additional evidence that they are confident in their strategy while creating more alignment with their LPs.

Founder 75

Founder LP Technical Review Seed Stage 75

Hunter Walker

SEPTEMBER 17, 2024

As a side note, another thing I wish people (especially women and other underrepresented talent) understood is that while venture is a money-management and investment business, it doesn’t require a deep finance background to do it (at early stages). Having a strong POV also helps with finding… LP/GP fit.

Venture Capital 87

Venture Capital LP Cap Table Portfolio 87

Both Sides of the Table

OCTOBER 12, 2014

In the old days there weren’t many fights about whether angels would take their prorata rights in financing rounds. But with the massive growth of seed funds being raised and the huge value increase of prorata rights many more LPs have stepped in to take their VC (industry term is GP) position. Thus begins the dance.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

Board Effect

SEPTEMBER 24, 2024

Martin Schneider , Chief Audit Executive, META Matt Mabel , Vice President – Internal Audit, American Express Travel Related Services Company, Inc Naohiro Mouri , Executive Vice President and Chief Auditor, AIG Global Operations Paul Lee , Sr Manager Internal Audit, Medline Industries, LP Rian Boncay , Program Project Manager, Dell Inc.

Technical Review 52

Technical Review Government South Africa LLC 52

Both Sides of the Table

SEPTEMBER 29, 2013

I had a chance to discuss AngelList Syndicates with Naval at Michael Kim’s Cendana LP/VC conference on a panel with Naval, Roger Ehrenberg (IA Ventures) and Mike Brown, Jr. lack of traction, lack of downstream financing availability. Many of the good and great of our industry are talking about AngelList. Bowery Capital).

Syndicate 356

Syndicate Syndication Cofounder Early Stage 356

Hunter Walker

APRIL 27, 2014

Last week we held our first annual LP meeting, when venture funds get their investors together with updates on operations and results. I’ve written before about our fundraising process and how it very much resembles that of a startup. There were four basic sections: 1) What We Said We’d Do & What We Did.

LP 98

LP Cofounder Term Sheet Valuation 98

VC Cafe

APRIL 29, 2020

This is part of Israel’s Ministry of Finance NIS 1.2 The Israeli Innovation Authority (IIA) announced last week an immediate infusion of NIS 500 million (approximately $141 million) to qualifying startups (significant IP, previous funding) and less than 12 months of runway.

Israel 124

Israel SBA Technical Review Startup 124

David Teten

DECEMBER 3, 2019

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.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Both Sides of the Table

SEPTEMBER 22, 2012

Instant growth = huge valuation from follow-on investors = big VC mark-up on our quarterly reports = LP interest. It encourages a bit too much FOMO (fear of missing out) and over-valuation in companies and a desire to do huge financing rounds to be perceived as the “knock-out winner.” Grow or die.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

David Teten

JANUARY 21, 2021

VI: Revenue-based financing: The next step for private equity and early-stage investment. This is a summary of: Revenue-Based financing: State of the Industry 2020. The fund’s network of mentors are all invested LPs, ensuring they have “skin in the game.” IV: Should your new VC fund use Revenue-Based Investing?

Equity 78

Equity Revenue Cofounder Colorado 78

Both Sides of the Table

MAY 27, 2013

In this period (less than 2 years) he has brought on incredibly talented senior execs is sales, marketing, product management, client services, finance, vp engineering and more. Growth like this, this early in a company’s lifecycle rarely happens. In his spare time he raised nearly $30 million. Send Text messaging for rapid responses.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

Austin Startup

AUGUST 10, 2017

Although we were studying finance, we were always more interested in tech. Before graduating, I decided to forgo the finance path and instead dove into engineering and later sales and product management roles at VersaSuite (health IT) in Austin. But we never lost the finance bug. We were infatuated with tech.

Technical Review 48

Technical Review Cofounder Technical Cofounder Austin 48

Babbling VC

OCTOBER 3, 2011

For those of you not in the know, they are one of the largest limited partners ( LP's : investors in venture capital funds) in Europe and are basically in almost all the funds throughout the market. If you see the new funds which have recently been launched you can tell the LP's are putting their money with former entrepreneurs.

LP 82

LP Europe Germany Venture Capital 82

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.

LP 269

LP Startup Burn Rate Stock Options 269

Both Sides of the Table

AUGUST 24, 2015

It will make follow-on financings much harder and people will have to consider whether or not to do inside rounds. These are all normal things but in this big run since 2009 we’ve all gotten used to nearly 100% follow-on financing rates, valuations only moving up, deals clearly the convertible note caps and low mortality rates.

Stock 150

Stock Finance Marketing Valuation 150

Hunter Walker

AUGUST 8, 2023

Obvious caveats to my POV here, most specifically: exposure is limited to largely the US/SiliconValley ecosystem, driven by our own portfolio, my friends and co-investors, the funds I’m a LP in, and our institutional LP relationships. Whatever gets reported is just the tip of the iceberg.

Portfolio 103

Portfolio Cap Table LP Valuation 103

Both Sides of the Table

JANUARY 5, 2010

If your idea is so amazing that it warrants my hard-earned angel money or the money of my LP investors from our fund then why should I take a risk on you if you won’t take a risk on yourself? VCs don’t have the same net worth litmus test and great entrepreneurs have a ton of sources for seed money to get financed very early.

Entrepreneur 293

Entrepreneur CTO Hire South America Salary 293

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

Hunter Walker

SEPTEMBER 29, 2022

Most of this discussion is about ‘playing offense’ — working towards being a good steward of LP capital and the risk/reward associated with VC. And finally, a more robust (but still somewhat opaque) secondary market emerged for transacting equity among parties.

Venture Capital 126

Venture Capital Cap Table LP Equity 126

David Teten

JANUARY 19, 2021

Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” Further reading: The Evolution of Entrepreneurial Finance: A New Typology. as that will determine how easy collection is for the investor.” .

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Haystack

JUNE 1, 2018

Perhaps because of this success and the unique elbow grease they supply to their portfolio, it was shocking to many to see that one of the storied seed franchises would contract, become its own sole LP, and scale back its operations. There is a tremendous amount of money and new deals and financings.

LP 116

LP Global Social Media Portfolio 116

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

Agile VC

DECEMBER 6, 2012

Unlike a startup that might raise equity financing across several rounds all combined in a single balance sheet, VC’s do not simply commingle these funds into a single bucket to be allocated across all the companies in that firm’s portfolio. Or public policy changes may force GPs or LPs to end longstanding relationships.

LP 178

LP Balance Sheet Differentiation Limited Partner 178

Both Sides of the Table

FEBRUARY 6, 2017

WINTER For starters when we conducted our annual VC & LP survey in December of 2016 to prepare our annual Upfront State of the VC Industry report we found that twice as many VCs cut their investments in 2016 relative to 2015 with > 30% of VCs having cut investments. Unless of course something Trump’s our good weather.

Venture Capital 150

Venture Capital Saudi Arabia Kuwait Burn Rate 150

Both Sides of the Table

MAY 19, 2013

Garcetti worked with LegalZoom, ShopZilla, Hulu and others to try and change the tax ordinance to support the emergence of our biggest tech companies in LA city only to be stymied by the head of the office of finance, Antoinette Christovale as outlined in this article. To attract LP money to local VCs. As does the mayor of Austin.

Los Angeles 325

Los Angeles San Francisco LP Austin 325

Both Sides of the Table

MAY 27, 2016

I was asked again in an LP meeting later in the week and then again at a founder breakfast gathering we hosted yesterday. I spend hours thinking about the products, competitors, market opportunities, recruiting and financing of these businesses. I answered in the same way I always do so I thought I’d just write it publicly.

Early Stage 254

Early Stage Non-Compete LP Later Stage 254

View from Seed

DECEMBER 11, 2019

Yes, there are intermittent points of feedback along the way, like valuation marks from subsequent rounds of financing. The median average investment time period to liquidity for a venture investment is currently 6.5-7.5

Venture Capital 204

Venture Capital Cap Table Partner LP 204

Both Sides of the Table

SEPTEMBER 1, 2016

Because VCs tend to “mark to market” for private investments so you would often value a company based on the last financing. What’s an LP to do in deciding which funds to invest in? The day before the deal was struck it’s very possible that Sequoia could have held the total value of the WhatApp deal at $1.5 We can’t know.

LP 264

LP Jordan Cofounder Limited Partner 264

VC Adventure

MAY 5, 2022

In markets like this, funds that deploy quickly generate markups on their full portfolio; those that show more patience suffer from an IRR perspective as a larger portion of their fund is yet to be marked up by subsequent financing rounds. Traditionally LPs have viewed this as positive. management fee).

IRR 116

IRR Metrics Valuation LP 116

This is going to be BIG.

SEPTEMBER 19, 2012

Two Sigma is a technology and finance company in Soho filled with incredibly bright engineers and developers, so I’m really excited about leveraging that partnership in a number of cool ways. I'm ecstatic to announce that Brooklyn Bridge Ventures has just completed a first close of $3.5

LP 112

LP New York City New York Chad 112

This is going to be BIG.

DECEMBER 3, 2020

By being in a pool of other fund investors, the LP meetings and co-investment calls could be an opportunity to connect with other like-minded or like-situationed investors—but again, it depends on how a fund organizes its community. Access to other investors.

Portfolio 134

Portfolio Syndicate Syndication Deal Flow 134

VC Adventure

AUGUST 13, 2014

The data I site below is from Foundry LP StepStone. And more importantly the data were financing level, not company level. This analysis is on a company basis, not a financing basis (the chart is labeled “Deal” but in this case that means company, not round). Quick update here.

LP 99

LP Portfolio Distribution Finance 99

Hunter Walker

AUGUST 24, 2014

It’s for reasons like these that I support getting startup founders some liquidity during their company’s first few years, perhaps as early as Series A financing when appropriate. Or put startup expenses on their credit cards, far beyond their savings, hoping they can close financing for the company by end of the month.

Founder 112

Founder San Francisco Liquidity Event LP 112

Both Sides of the Table

AUGUST 10, 2013

You think investors will continue to finance you – they promised they would – but you never really know. It’s not that you don’t believe in your ultimate outcome – you have to believe in order to be insane enough to continue the journey against all odds – it’s just that there is nagging self doubt.

Startup 412

Startup San Francisco LP Bankruptcy 412