VC Adventure

MAY 5, 2022

I’m observing that IRR is a metric that is becoming an increasing focus in venture, replacing fund return multiple as the key metric of success. I understand the draw of IRR, and – as a fund draws to a close – there’s no question it’s an important metric. management fee). Venture is a long game.

IRR 116

IRR Metrics Valuation LP 116

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. Calibrated against the firm’s overall velocity (which can vary), this metric is a tell-tale about a Partner’s standing with their peers. VCs that are on their way out aren’t making a ton of new investments.

Venture Capital 204

Venture Capital Cap Table Partner LP 204

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. By the first quarter of 2016, the late-stage financing market had changed materially. Investors were becoming nervous and were no longer willing to underwrite new Unicorn-level financings at the drop of a hat. This is uncharted territory.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

K9 Ventures

OCTOBER 10, 2017

I’ll start with all the questions I can think of, from many different perspectives: founders, LPs, the press, and even other VCs. This post is intended to be a dynamic document, and I will attempt to update it from time to time with new questions that may arise or as financing trends evolve. Q: Define Pre-Seed?

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

This is going to be BIG.

SEPTEMBER 7, 2012

There are a lot of people that artificially group together performance metrics for venture, and try to extrapolate successful stratagies from it. I know, because those people all used to pitch me as an institutional LP back in the day. Do what you're good at. It's that simple.

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99

K9 Ventures

OCTOBER 12, 2015

Not to mention that in later stages, high valuations can almost be fatal for some companies that don’t have the operating metrics to justify those valuations once the market turns. I’ve often said in private that I blame LPs for the cyclical nature of the venture industry. As valuations increase, VC returns go down.

Venture Capital 48

Venture Capital Seed Stage LP Valuation 48

Austin Startup

JUNE 26, 2019

Related: when people say that execution is the most important metric of who will win, keep in mind that executing a fundraise is almost paramount. Where there isn’t consensus is what metrics meet the bar for “early traction” and who qualifies as a “great team”. That’s a metric! especially in a winner-take-all category?—?that

Silicon Valley 54

Silicon Valley Startup B2C Sweat Equity 54

Startup Lessons Learned

MAY 4, 2021

And of course, I wasn't really interested in the finance side of it to me. You can go read about it on Wikipedia and whatnot, but it's sort of a metric that economists use to look at the various countries of the world and measure how economically free those places are. I'm curious. What was your first reaction when you saw it?

IPO 113

IPO Cofounder Technical Review Government 113