Remove LP Remove Partner Remove Reputation
article thumbnail

The Changing Structure of the VC Industry

Both Sides of the Table

Limited Partners or LPs (the people who invest into VC funds) have taken notice as 2014 is by all accounts the busiest year for LPs since the Great Recession began. But it still takes VC to scale a business (thus large capital into industry winners like Uber, Airbnb, SnapChat, etc). Why is this?

article thumbnail

15 Steps to Fundraising for Your New Venture Capital or Private Equity Fund

David Teten

I’ve been fortunate to be a Partner at two different VC firms over the past 9 years, and we’ve grown AUM 10X both times. Build the firm as much as possible before you solicit limited partners. . The next best move is to build your core team, e.g., recruit an Advisory Board, Venture Partners, and EIRs. Lastly, gather feedback.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Conference Notes on Sourcing Deal Flow & Developing New Business for Private Equity

David Teten

High Road Capital Partners Deal Sourcing Keynote. Fitzsimmons, High Road Capital Partners. Must build and promote your reputation / expertise. Flow is a function of reputation and share of mind in target market. Prestegaard, High Road Capital Partners. Fitzsimmons, High Road Capital Partners. Social media.

article thumbnail

Emerging Manager Mode: The VC’s version of “Do things that don’t scale”

VC Cafe

Example: Emerging managers handle everything from deal sourcing to LP communications to social media in-house. Their reputation depends on the value they provide, so they work hard to create good-will. For LPs, it seems, there is perceived safety in numbers: mega funds.

article thumbnail

Sharp Elbows Among Seed VCs

View from Seed

They are also increasingly focused on “leading” rounds, because funds that are institutionalizing get LP pressure around whether or not they lead. The challenge is that most seed funds still make 5+ new investments per year per partner, which seems like too many to fully support founders.

Syndicate 267
article thumbnail

How investors evaluate VCs

The Equity Kicker

LPs, the investors in VC funds, have a difficult job to do, largely because they have to work with poor quality data and only a small fraction of VCs deliver the returns that make them worth investing in. Discipline also helps to keeps a venture fund’s loss ratio low which is important as they are ultimately stewards of LP investment funding.”

LP 154
article thumbnail

Never Been Easier to Become a VC. Never Been Harder to Stay One.

Hunter Walker

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). First fund is like a seed round – it’s based on pitch and reputation.