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It’s Morning in Venture Capital

Both Sides of the Table

Many observers of the venture capital industry have questioned whether its best days are behind it. Looking ahead at the next decade I am excited by what I believe will be viewed as one of the best and most rational investment periods for venture capital due to seven discrete factors: 1. This article originally ran on PEHub.

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Want to Know How First Round Capital was Started?

Both Sides of the Table

If you read this blog often you'll know that I'm a huge fan of First Round Capital. One example is that they introduced a program where their founders can pool together shares from their company and exchange them for a small portfolio of other First Round Capital companies. In 2008 they raised a much larger fund $132.5

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The Coming Zombie Startup Apocalypse

This is going to be BIG.

Sam Altman of YC recently pointed out that pulling back during the downturn in 2008 would result in several big misses: In October of 2008, Sequoia Capital—arguably the best-ever in the business—gave the famous “RIP Good Times” presentation (I was there). A few months later, we funded Airbnb.

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What Everyone Should Take Away from Twitter’s 8% Staff Reductions

Both Sides of the Table

One of the points I tried to make is that as venture capital investors as an industry we seem to have a healthy disdain for public market investors. The truth is that Twitter is an amazing company and still has an amazing opportunity in front of it. I spoke at Michael Kim’s excellent annual Cendana VC/LP conference today.

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Cash on Cash vs IRR

A VC: Musings of a VC in NYC

Our 2008 vintage early-stage fund has generated about 5x cash on cash but only generated a 22.5% Our first Opportunity Fund, raised two years later in 2010, has generated only 3.9x And our second Opportunity Fund, raised in 2014, has generated 7.3x Venture capital funds do not take down the entire capital commitment upfront.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

I guess that makes USV, Spark Capital, Foundry Group, Accel, Benchmark, Revolution (along with several others) pretty happy right now. source: Capital IQ. source: Capital IQ. I said, “It’s much easier now than it was in 2008/09.&# Still, market amnesia by ordinarily rational actors always surprises me.

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"About Last Night." The note I just sent to my portfolio.

This is going to be BIG.

In 2008, I tried to fundraise for my startup the week that Lehman Brothers went under. Over the long term, innovation prevailed and 2008 turned out to be a great year to have a 1-3 year old company if you could make it through the next year. This also means taking on extra capital. You can imagine how well that worked out.

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