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

MARCH 3, 2013

In a discussion I had with Fred Wilson at the Invesco LP meeting Fred said the same about the influence of Clayton. He believes that one of the financial metrics taught at business schools and reinforced by Wall Street has accelerated offshoring of industries. He spoke about ROCE (return on capital employed).

Bankruptcy 403

Bankruptcy Offshore Liquidation Preference Balance Sheet 403

David Teten

JANUARY 19, 2021

This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

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

conversionxl.com

FEBRUARY 4, 2014

Ask Peep about analytics, and he’ll tell you, “Metrics are there to provide actionable insight. You need to look at a metric, ask “so what?” – and have an answer.”. So its clear that how important LP’s are. Step 1 – Set Up Actionable Analytics. Do This: Set up your conversion goals in Google Analytics.

Analytics 98

Analytics Software Review Conversion Video 98

Austin Startup

AUGUST 10, 2017

We invest in protocols that meet our quantitative and qualitative metrics. They helped us establish 2 GP entities, 2 LP entities, and 1 Cayman entity (for international investors) in ~2 months. We dive deep into white papers, review technology, economics, game theory, etc.

Technical Review 48

Technical Review Cofounder Technical Cofounder Austin 48

David Teten

SEPTEMBER 23, 2017

An investor had few hard metrics other than the actual financials, and little technology to make the process scaleable. Over the past few decades, better metrics became available, and investors could take a more analytical, data-driven approach. ” Historically, investing was a manual, artisan process.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

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 was speaking recently to the team at NuOrder , an LA-based company we’re an investor in about “realism in startups” — an impromptu talk I have given to any of our portfolio companies who ask.

Early Stage 254

Early Stage Non-Compete LP Later Stage 254

Startup Lessons Learned

AUGUST 10, 2011

The LP's that fund booms are, after all, pension, municipal, and sovereign wealth funds. Every ounce of energy invested in vanity metrics and success theater could have gone into building real value instead. But the signs of winter are all around us: persistently high unemployment, market shocks, ill-timed austerity measures.

LP 168

LP Incubator New York Programming 168

David Teten

MARCH 2, 2013

He surmises that LPs aren’t buying the argument that large funds don’t perform. Beyond the fact that LP capital commitments don’t prove anything about returns, however, large funds are likely much more resilient to a few bad years than small funds are. But why would any LP ever drop out of such a fund?

LP 114

LP Securities and Exchange Commission Silicon Valley Venture Capital 114

Hunter Walker

APRIL 4, 2014

Part of our presentation will be portfolio financials, which, because we’re relatively new, aren’t exceptionally volatile (LP speak: most of our investments are still carried at original value since no additional fundraising has occurred). Third fund is the B round – metrics, results.

San Francisco 115

San Francisco Private Equity LP Syndicate 115

View from Seed

DECEMBER 11, 2019

Calibrated against the firm’s overall velocity (which can vary), this metric is a tell-tale about a Partner’s standing with their peers. It’s the most simple & straightforward question to ask and tough to spin – how many investments have you made in the past year? 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

Hunter Walker

JANUARY 17, 2019

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. This cat has nothing to do with this post. I just didn’t want to use a stock photo of a laptop.

Portfolio 123

Portfolio Forecast Dilution LP 123

K9 Ventures

DECEMBER 10, 2011

Take two companies doing the same thing, having similar technology and I’ll bet that the company that’s located in the Valley will be 10x the size, or 10x the revenue, or whatever other success-metric you want to apply. Likewise if you’re an LP, you have to make sure you have reasonable exposure to Valley investments.

Silicon Valley 124

Silicon Valley San Jose Portfolio Cofounder 124

Hunter Walker

MAY 18, 2015

As a result, we have to rely on the qualitative metrics previously discussed. AD: The Foundation’s venture portfolio currently has a mix of established as well as new managers. Emerging managers do not have track records, established franchises or teams.

LP 48

LP Portfolio Early Stage Institutional Investors 48

K9 Ventures

DECEMBER 10, 2011

Take two companies doing the same thing, having similar technology and I’ll bet that the company that’s located in the Valley will be 10x the size, or 10x the revenue, or whatever other success-metric you want to apply. Likewise if you’re an LP, you have to make sure you have reasonable exposure to Valley investments.

Silicon Valley 112

Silicon Valley San Jose Portfolio Cofounder 112

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 10, 2017

The first time I used the words “pre-seed” (yes, the initial use was in all lower-case, but then became upper-case over time) was on June 27, 2013, at the K9 Ventures LP Meeting. If the Micro-VCs are looking for Series A-like metrics, what does a company do when it’s just getting started? Where did the term Pre-Seed come from?

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

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

abovethecrowd.com

APRIL 20, 2016

They are likely sitting on amazing paper-based gains that have already been recorded as a success by their own investors — the LPs. Anything that hints of a down round brings questions about the success metrics that have already been “booked.” If you over-fund the industry, aggregate returns fall.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

This is going to be BIG.

NOVEMBER 16, 2015

The human joy per square foot metric is one we'll be tracking closely over time here. I was working for the GM pension fund, an institutional LP, as an analyst, doing a research project on consumer private equity and venture capital investing. It's a part of the neighborhood--not just a dispensary of ice cream.

Venture Capital 60

Venture Capital Cofounder Syndicate Syndication 60

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

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. Due to their bylaws and LP agreements and things, they can only hold public securities, like in the traditional sense.

IPO 113

IPO Cofounder Technical Review Government 113