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In all these cases, capital is provided to fuel forecasted growth without creating a commitment to a particular vision for future funding rounds, exit goals, and associated blitzscaling. These variations in founder-alignment allow Flexible VCs to specialize in the types of companies they work with. The State of Flexible VC.
Jaime Hildreth, Managing Director of GP and LP Strategies at Ipreo , informed us that 97% of Ipreo’s GP clients report that data requests from LP’s have increased over the past two years. Yet, according to my own surveys, a majority of private capital funds (including funds that specialize in fintech!)
If Your Portfolio Model Assumes Outperformance Across Multiple Metrics, I Don’t Believe It: Every VC fundraise has an Excel sheet that forecasts the performance of the fund. I just didn’t want to use a stock photo of a laptop. This exercise is also known as “let me show you how we get to 3-5x net.”
Master the Art of Trend Forecasting (or Onboard Someone to Do it For You). Staying ahead of market trends in your industry, and forecasting what will be in demand in the coming five to ten years is a non-negotiable skill. and Alarmforce LP, SkyBell Technologies, In August Home Inc.,
I spoke at Michael Kim’s excellent annual Cendana VC/LP conference today. But like many companies over the past five years it hired aggressively and probably had some degree of straying off of a core strategy and some amount of excess jobs relative to its current revenue forecasts and opportunities. Here’s my take away.
If you want to see what was on my mind – I started foreshadowing change publicly in October 2015 with a forecast of what I expected in 2016 VC funding markets at a presentation I gave at the annual Cendana VC/LP conference hosted by Michael Kim. Total customers grew 20% year/year.
by Joe Duncan, founder of Duncan Capital LP. An early example occurred in 2010 when UBS Analyst Neil Currie accessed satellite imagery to monitor activity in Walmart parking lots, running the data thru a mathematical regression to translate it into customer activity for better earnings forecasts. We need smarter humans than we did.”.
Relationship Cost of SPVs/Direct Co-Investment and LP Credibility. Especially during the past decade bull run, when everything was up and to the right, venture investors loved to increase their exposure to companies by syndicating SPVs (or direct investment opportunities) to their LPs, friends and other industry luminaries.
As you can see from the chart below, very few VCs are forecasting significant price drops (2%) versus a year ago when a large number were bracing for price drops (30%). Below is the full deck with a lot more data and insights and if you missed the recently published LP Survey Results you can find them here.
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