View from Seed

DECEMBER 4, 2019

The trends described above in VC performance have an upstream effect on Limited Partners which is somewhat counter-intuitive. Most LPs are trying to manage some targeted asset allocation. And over time, if VC is performing well, the LP may actively manage up their allocation to venture. LP Constraints.

LP 256

LP IRR Distribution Portfolio 256

Both Sides of the Table

FEBRUARY 20, 2019

The Limited Partners (LPs) who back funds don’t expect their dollars to be passive. But gone are the days where VCs put dollars into companies and ask founders to step aside quickly so that the VC can install their favorite management team. Can I really manage a 7-person board plus 2 board observers? Legally speaking.

Venture Capital 236

Venture Capital Startup Angel Investor Silicon Valley 236

David Teten

JANUARY 23, 2021

Build the firm as much as possible before you solicit limited partners. . Your materials should ideally meet the expectations of the Institutional Limited Partners Association, even if you’re not targeting institutions. Note that limited partners view formatting as a proxy for professionalism.

Private Equity 78

Private Equity Venture Capital Technical Review Software Review 78

Both Sides of the Table

OCTOBER 12, 2014

People all across the value chain have taken notice including Limited Partners who are the people who invest in VC funds in the first place. Why prorata rights are now sought out by LPs. But I can’t secretly take 50% while offering angels 0%. That seems fair. We are all bound to the same economics.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

David Teten

APRIL 13, 2021

It would make life a lot easier for emerging managers if they could outsource the entire fundraising process. Empirically, few small emerging investment managers hire placement agents, particularly in venture capital. There are eight main reasons why so many small emerging managers do not work with placement agents: Economics. .

Private Equity 60

Private Equity Technical Review Management LP 60

Steve Blank

MARCH 16, 2016

VC’s raise money from their investors (limited partners like pension funds) and then spread their risk by investing in a number of startups (called a portfolio). BTW, Angel investors do not have limited partners, and often invest for reasons other than just for financial gain (e.g., The Deal With the Devil.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Private Equity 120

Growthink Blog

MAY 14, 2014

The result has been a “regression to the mean” - with alpha performance by fund managers being driven as much by randomness and luck (as it has been with public market mutual funds for decades) as by coherent design. With now over one thousand active U.S. This all costs money. So what to do?

Venture Capital 101

Venture Capital Disintermediation Technical Review Term Sheet 101

David Teten

MAY 16, 2017

Historically, the process of winning capital from limited partners has been opaque. A few years ago, I presented at an Invesco conference on Emerging GPs, and one of the highlights was a presentation by Laurie Weir summarizing CALPERS’ selection criteria under their Private Equity Emerging Manager Program Review.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

This is going to be BIG.

OCTOBER 5, 2012

They didn't care about you when you needed commercial credit, but now--now they want to manage your money. The problem is that there are fantastic opportunities out there with completely trustworthy managers. You've never dealt with these expensive suit Wall Street types and don't want to. Welcome to family office investing.

LP 97

LP Venture Capital Technical Review Nebraska 97

thebarefootvc

JULY 3, 2017

Limited partners (LPs), who manage the capital that gets deployed into venture capital funds, can play an important role in diversifying the funding landscape. Limited partners are pension funds, university endowments, funds of funds (who get their money from pension funds), family offices and foundations.

LP 65

LP Technical Review Silicon Valley Limited Partner 65

David Teten

DECEMBER 3, 2019

However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and. 1) Manage the firm . This is harder than it sounds.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

David Teten

SEPTEMBER 23, 2017

A major angel group used Influitive , an advocate management tool, to track, activate and motivate their members. A more efficient approach is to mine the data exhaust from the Limited Partner universe to identify those LPs most likely to find your fund attractive, and focus all your energy on them. 4) Manage deal flow.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Steve Blank

FEBRUARY 3, 2011

Their fiduciary responsibility was to manage a portfolio of investments for their limited partners. At the end of the day VC’s have to provide their limited partners with great returns or they aren’t going to be able to raise another fund. If you succeed so do they.

San Francisco 333

San Francisco Silicon Valley Limited Partner Venture Capital 333

Both Sides of the Table

MARCH 1, 2016

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. But both seed investors and LPs alike agree that as long as these programs are managed sensibly, their existence is useful.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

David Teten

JANUARY 19, 2021

As two fund managers employing Flexible VC, we think it is a healthy addition to the ecosystem and will yield more predictable and stable healthy returns for investors. Too often, investment structures force the management team to make decisions between misaligned growth and investment (return) objectives. Early liquidity.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Steve Blank

JULY 15, 2010

VC’s invested their limited partners’ “risk capital” in a portfolio of startups in exchange for illiquid stock. This changed their interest from managing your board for their liquidity to managing the board for all shareholders. The system worked in predictable and profitable ways. Success Means That You’re Acquired.

Venture Capital 306

Venture Capital IPO Liquidity Event Entrepreneur 306

David Teten

MARCH 21, 2018

Similarly, our limited partner investors have their own due diligence standards, and we manage HOF Capital to keep in line with their standards and expectations. I wrote a little while ago about how to assess this: – For assessing any organization: Ready to Join a New Management Team?

Due Diligence 60

Due Diligence Private Equity Limited Partner Venture Capital 60

David Teten

MARCH 21, 2018

Similarly, our limited partner investors have their own due diligence standards, and we manage HOF Capital to keep in line with their standards and expectations. I wrote a little while ago about how to assess this: – For assessing any organization: Ready to Join a New Management Team?

Due Diligence 60

Due Diligence Private Equity Limited Partner Venture Capital 60

Growthink Blog

JUNE 28, 2010

Becoming a Limited Partner Investor in a Venture Capital or Private Equity Fund. o Far more problematically, because of their traditional 2.5% (on average) management fee model, there has been a great propensity in recent years for the better funds to grow quite large.

Private Equity 63

Private Equity Technical Review Silicon Valley Los Angeles 63

Growthink Blog

JUNE 28, 2010

Becoming a Limited Partner Investor in a Venture Capital or Private Equity Fund. o Far more problematically, because of their traditional 2.5% (on average) management fee model, there has been a great propensity in recent years for the better funds to grow quite large.

Private Equity 63

Private Equity Technical Review Silicon Valley Los Angeles 63

David Teten

DECEMBER 12, 2017

(written by Philipp von dem Knesebeck , Managing Partner, Blue Future Partners (bluefp.com, @bluefutureteam ), and David Teten ). Based on this paper, Blue Future Partners and PEVCTech recently completed a large-scale survey to find out which tools are most commonly used by venture capital firms.

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

Both Sides of the Table

NOVEMBER 9, 2014

I am generally a fan for providing management updates periodically for all investors but in doing so you must assume that what you send out will get read by others and thus hold back on your most sensitive information.

SEC 352

SEC Venture Capital Early Stage Cofounder 352

Hunter Walker

SEPTEMBER 12, 2024

Firms with very large funds make a lot of money for themselves in management fees before realizing returns. Those incentives are often misaligned with the interests of founders and limited partners.

Venture Capital 79

Venture Capital Technical Review Early Stage Warrant 79

David Teten

JANUARY 9, 2018

A friend of mine interviewed for a job with massively successful hedge fund manager Steven A. a “Bitcoin Fund”, a “Social Media Fund”, a “Nanotech Fund”), you’re going to raise capital from Limited Partners who are very focused on Theme X. – Thoughtful fund management. The result is a poorly managed organization.

Venture Capital 60

Venture Capital Private Equity Silicon Valley Differentiation 60

David Teten

JANUARY 9, 2018

A friend of mine interviewed for a job with massively successful hedge fund manager Steven A. a “Bitcoin Fund”, a “Social Media Fund”, a “Nanotech Fund”), you’re going to raise capital from Limited Partners who are very focused on Theme X. – Thoughtful fund management. The result is a poorly managed organization.

Venture Capital 60

Venture Capital Private Equity Silicon Valley Differentiation 60

Both Sides of the Table

FEBRUARY 25, 2019

I work hard to create working relationships with my fellow non-management board members in the same way that every investor ultimately works to develop strong working relationships with founders. Every year I invited my largest investors to NYC to have an LPAC meeting (Limited Partner Advisory Committee?—?kind

LP 269

LP Startup Burn Rate Stock Options 269

David Teten

JULY 25, 2017

We have lower AUM, therefore lower management fees. For example, our limited partners have major ownership interests in such companies as Adidas , LafargeHolcim (largest building materials manufacturer in the world), and SuperNAP International (developer of data center facilities worldwide; used by Amazon, Intel and Microsoft).

Portfolio 60

Portfolio Technical Review Private Equity Database 60

View from Seed

OCTOBER 29, 2014

Most of the dollars a VC firm invests come from outside limited partner investors (LPs). The actual partners of a VC firm (GPs) will typically invest a minimum of 1% of the total size of their fund,* though frequently this percentage is substantially higher (especially in many of the best funds). The first is a staff constraint.

LP 335

LP Private Equity Institutional Investors Venture Capital 335

Gust

MAY 7, 2014

The general partners of a venture capital fund make money… …by raising the bulk of the capital that the fund’s investable capital from “Limited Partners”, usually institutions such as university endowments, insurance companies and pension funds. This is the money that is invested into the startups.

Venture Capital 154

Venture Capital IPO Limited Partner Carried Interest 154

This is going to be BIG.

FEBRUARY 23, 2016

Either way, VC funds aren't really built around creating much of an experience for their Limited Partners. Rather than see LP interactions as a chore or a burden, new fund managers should see this as an opportunity to extend the community around their fund. For smaller funds, I think this is a real mistake.

Limited Partner 60

Limited Partner Venture Capital Partner LP 60

Steve Blank

JUNE 1, 2011

Investors get board seats to assure themselves and their limited partners that they are duly informed about their investment. There are no standards for what each side (board versus management) does. From a VC’s point of view there are two reasons for board meetings. 1) It’s their fiduciary responsibility. The Wrong Structure.

Silicon Valley 300

Silicon Valley Business Model Venture Capital Balance Sheet 300

Eric Friedman

AUGUST 18, 2021

He is also co-founder and Managing Partner of Deciens Capital, an early stage investment fund. As many of your listeners may know, there was an incredible piece published by a gentleman from Founders Fund, discussing Tiger [Global Management] and how they’re focused on the speed and scale business. On Sushi and VC.

Silicon Valley 88

Silicon Valley Venture Capital Cofounder Africa 88

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. Google My Business , which helps me manage my Google presence. . I welcome suggestions.

Social Media 60

Social Media Technical Review Media Private Equity 60

David Cohen

SEPTEMBER 13, 2019

She told me that most of her Limited Partners (investors in her fund) didn’t seem to care about the frequency of capital account statements. The post Micro-VC fund management and capital account statements appeared first on Hi, I'm David G.

Management 90

Management Limited Partner .Net Finance 90

Steve Blank

JUNE 1, 2011

Investors get board seats to assure themselves and their limited partners that they are duly informed about their investment. There are no standards for what each side (board versus management) does. From a VC’s point of view there are two reasons for board meetings. 1) It’s their fiduciary responsibility. The Wrong Structure.

Silicon Valley 273

Silicon Valley Business Model Venture Capital Balance Sheet 273

Both Sides of the Table

JUNE 29, 2017

This brings our combined funds under management to nearly $2 billion. A huge thank you to all of the Limited Partners who have entrusted us with your capital, time and reputations. I am so proud and humbled to be able to formally announce that Upfront Ventures has raised its 6th venture capital fund in the past 21 years.

Los Angeles 287

Los Angeles Las Vegas Venture Capital San Francisco 287

Agile VC

DECEMBER 19, 2013

As a VC investing not only personal capital, but on behalf of limited partners, one can’t take this strategy. This can include learning more about technologies, markets, and people that may be impactful to the angel’s other endeavors. ” But as an angel one can overweight this factor.

Angel Investor 265

Angel Investor Early Stage Syndication Syndicate 265