Both Sides of the Table

OCTOBER 12, 2014

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. What would you do as an LP fund if you backed a seed-stage GP who had a position in Twitter, Pinterest, etc. Why prorata rights are being guarded by VCs.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

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. LPs See The Over-Valuations and Don’t Like It. All isn’t completely rosy in the LP views of the venture industry.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

Agile VC

OCTOBER 23, 2012

The VC industry (both the GP part and the LP part) pays attention to the sector’s returns, but the broader tech ecosystem only occasionally tunes in. 2) No Synthetic Alternative – If an LP can’t “buy” VC as an index, could they replicate the returns of an index some other way?

LP 176

LP Accredited Investor Carried Interest Distribution 176

David Teten

MAY 20, 2016

As one of the lead engineers at ff Venture Capital , I spend most of my day building custom software solutions that enhance our firm’s process–tools that range from portfolio investment management to co-investor and cap table tracking and more. We posted on our site a more in-depth overview of ff’s Tech Platform.

Private Equity 113

Private Equity Equity Cap Table Venture Capital 113

VC Cafe

SEPTEMBER 5, 2024

Paul Graham’s recent essay, Founder Mode , describes the mindset that founders need to adopt to navigate the early stages of building a startup, and how they’re different than ‘manager mode’ which is traditional management/corporate best practices.

Management 103

Management Technical Review Venture Capital Generative AI 103

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. The reality is that many underrepresented fund managers start off with small funds and go through several fund cycles to build to a $100M fund.

LP 65

LP Technical Review Silicon Valley Limited Partner 65

David Teten

JANUARY 23, 2021

For example, one LP told me she prefers customized emails from fund principals, as opposed to a bulk-mailed quarterly update. In particular, highlight the metrics by which you measured your past activities: size of exit, number of people you managed, $ budget you were responsible for, etc. We are using Digify to manage this.

Private Equity 78

Private Equity Venture Capital Technical Review Software Review 78

Both Sides of the Table

MARCH 6, 2017

Every LP I speak with these days tells me, “We need to have coverage in Los Angeles — we know that” and it’s no coincidence that we’ve seen the explosion in emerging managers covering the Seed and A-round investment scene in LA. They always ask whether I see this as threatening as Upfront Ventures.

IPO 191

IPO Los Angeles South Korea Armenia 191

Both Sides of the Table

FEBRUARY 20, 2019

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. The start is about inspiration, vision, product, early execution whereas the scale is about team management, process and consistency. Is it possible that you get fired?

Venture Capital 236

Venture Capital Startup Angel Investor Silicon Valley 236

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

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. Hypothesis 3: Insufficient diversification in European VC managers’ portfolios . This for me is a no-brainer.

LP 82

LP Europe Germany Venture Capital 82

Version One Ventures

JULY 24, 2019

The primary responsibility will be to help manage the day-to-day activities of the fund, including: Identifying new and interesting entrepreneurs and companies that align with our investment thesis on network effects. Reporting for our investors, including writing quarterly updates and preparing LP advisory board meetings.

Technical Review 124

Technical Review Advisory Board Due Diligence LP 124

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

View from Seed

OCTOBER 29, 2014

The nature of LP investors can vary widely, but the bulk of the capital in the VC ecosystem comes from large institutions like pension funds, endowments of universities and hospitals, charitable foundations, insurance companies, very wealthy families (aka family offices), and corporations. The first is a staff constraint. Advisory Firms.

LP 335

LP Private Equity Institutional Investors Venture Capital 335

Hunter Walker

JANUARY 5, 2014

Managing short-term tactical outcomes with longer term relationship cultivation. raising capital, building LP relationships, infrastructure and platform investments, recruiting for firm, budget/audit, evaluating overall firm strategy and performance. But as I build our business, it’s time that I’m thinking about.

Software Review 124

Software Review Balance Sheet Cofounder Technical Review 124

Feld Thoughts

MARCH 24, 2017

Foundry Group is best known for our investments in startups, but our vehicle currently investing in other venture funds, Foundry Group Next, is off to what we believe to be a great start and I wanted to share an update about it by talking about our new investment in a fund managed by Founder Collective. It starts with the people.

Founder 76

Founder LP Technical Review Seed Stage 76

Version One Ventures

MAY 3, 2023

Version One has made only one investment in the region ( Headout , a fast growing marketplace for travel experiences) and I had written a small LP cheque into an emerging fund manager ( 1947 Rise , run by the awesome Shiva Sangwan ). I had only a few connections in India before this trip.

India 86

India LP Silicon Valley Vertical 86

David Teten

SEPTEMBER 26, 2016

Among the speakers are: Aaron Brown, Chief Risk Officer, AQR Capital Management. Fabio Mercurio, Head of Quantitative Analytics, Bloomberg LP. Head of Portfolio Management, AQR Capital Management. This is a large conference focused on quant and automated investing, big data, and High Performance Computing.

New York 60

New York Fractional CTO CTO LP 60

David Teten

MAY 16, 2017

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. Denis Tse: Fund Management Craftsmanship: An LP’s Food for Thought for Emerging VC General Partners.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

David Teten

JUNE 1, 2011

Panel 1: Creating The Right Deal Flow — Creating & Managing Sustainable, Replicable Strategies. Zubin Avari, Charter Oak Equity LP Christopher A. Much of this is done for quarterly earnings management reasons. Charter Oak Equity LP Fee at close Part of management fee Part of carry. Wells, PE-Nexus LLC.

Private Equity 122

Private Equity Deal Flow Equity Developer 122

Agile VC

OCTOBER 29, 2014

The nature of LP investors can vary widely, but the bulk of the capital in the VC ecosystem comes from large institutions like pension funds, endowments of universities and hospitals, charitable foundations, insurance companies, very wealthy families (aka family offices), and corporations. The first is a staff constraint. Advisory Firms.

Venture Capital 279

Venture Capital LP Private Equity Institutional Investors 279

Feld Thoughts

JUNE 5, 2018

9 Questions That Help Get You To GP/LP Fit. In it, Beezer goes through, in depth, the top questions she recommends you ask an LP to determine GP/LP fit. How much capital do you have under management, and how much of that is invested in venture? How many venture managers are you currently allocating to?

LP 88

LP Portfolio Management Founder 88

View from Seed

SEPTEMBER 23, 2020

After building NextView for almost 10 years now, I’ve been having more conversations recently with first time managers looking for some tactical advice. At first glance, you’d think that all LPs pretty much want to buy the same thing. Every fund pitching an LP is pitching this as a baseline. Are they a principal or an agent?

LP 309

LP Customer Early Stage Portfolio 309

Both Sides of the Table

JUNE 29, 2014

It had an influence on the people who fund our industry in a negative way as many asset managers who fund our industry read this flawed report. I saved it mostly for LP discussions that I had over the past year. ” The most recent was 18 months ago or so called The Kauffman Report.

Venture Capital 362

Venture Capital IPO Jordan LP 362

Feld Thoughts

AUGUST 13, 2018

Several years ago, I wrote a post titled Why VCs Should Recycle Their Management Fees. We feel that if an LP gives us a $1 to invest, we should invest at least that $1, not $0.85 (the average fee load over a decade for a typical VC fund is 15%.) From the start of Foundry Group in 2007, we have felt strongly about this.

LP 119

LP Management Carried Interest .Net 119

BeyondVC

JUNE 29, 2005

I am not sure how many entrepreneurs understand the structure of venture capital funds but the bottom line is that while VCs manage funds, we ultimately report to our investors or Limited Partners (LPs). It is not our money, and we have a fiduciary responsibility to manage it properly and generate the returns our LPs expect of us.

LP 78

LP Private Equity Due Diligence Venture Capital 78

The Equity Kicker

MARCH 19, 2012

The LP Update Meeting. I’m just back from our semi-annual update to the LPs in one of our funds, and I thought I would share the experience with you all. We have around a dozen LP update meetings a year across our four funds and they are the most important moments of contact we have with our investors. Manager update.

LP 97

LP Europe Portfolio Private Equity 97

Eric Friedman

DECEMBER 27, 2021

Bullish in this space since 2015 I see the air cover in place for institutions and private wealth managers to now take the plunge. Operating as a sort of fund-of-funds model there is an economy of scale program for figuring out the GP/LP structure, working out the services providers like legal, audit, and tax handling.

Balance Sheet 97

Balance Sheet Stock Private Equity Option Pool 97

Feld Thoughts

MAY 28, 2014

Some of them recycle their management fees; others don’t. I’ve never really understood why funds don’t recycle their management fees. Understanding what “recycling management fees” means is a fundamental part of understanding the economics of a venture firm. Here’s how it works.

Management 151

Management .Net LP Venture Capital 151

David Teten

DECEMBER 12, 2017

(written by Philipp von dem Knesebeck , Managing Partner, Blue Future Partners (bluefp.com, @bluefutureteam ), and David Teten ). Lisa Edgar, Managing Director at fund of funds Top Tier Capital Partners , observed: “It’s not surprising that venture capitalists are using software to help manage their business.

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

Haystack

JULY 20, 2018

From an investment point of view, managing and deploying capital in the same physical area makes sense, where investors can work with young companies and help them with a variety of things. Over the past two years, however, I’ve felt that something is out of balance.

San Francisco 116

San Francisco Silicon Valley Seattle Venture Capital 116

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. A high-functioning board comes with active management and you actually have to care about having a high-functioning board.

LP 269

LP Startup Burn Rate Stock Options 269

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

David Teten

SEPTEMBER 23, 2017

A major angel group used Influitive , an advocate management tool, to track, activate and motivate their members. 4) Manage deal flow. For example, we created a pipeline management tool that automatically adds deals along with relevant information (such as attachments received) to our funnel. Pitchbot.vc 5) Due diligence.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Agile VC

DECEMBER 6, 2012

A little more inside baseball from the VC biz… why VC’s rarely make “crossover” investments, with capital from multiple funds the VC firm manages invested in a single startup (see note 1). If Acme Ventures III, LP invests in Startup X then typically Acme Ventures IV, LP would not. Why is this?

LP 178

LP Balance Sheet Differentiation Limited Partner 178

Austin Startup

AUGUST 10, 2017

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. Diversified funds are the most effective way to manage exposure to this volatile, rapidly evolving asset class. We were infatuated with tech.

Technical Review 48

Technical Review Cofounder Technical Cofounder Austin 48

David Teten

JANUARY 21, 2021

Prasanna Krishnamoorthy, Managing Partner, Upekkha Value SaaS Accelerator, said, “We are the first fund which combines an Angel List rolling fund structure for making LP access widely available, while using the variable VC model of giving founders the option to buy back their equity at a later stage, ensuring founder optionality.

Equity 78

Equity Revenue Cofounder Colorado 78