Venture Capital is About Human Capital

Both Sides of the Table

Fundamentally venture capital is about human capital. In the end I know the only true differentiator in venture capital is the company you keep. Venture Capital is a people business.

Unlimited Capital

A VC: Musings of a VC in NYC

This post on the WeWork IPO ends with the following observation: In fact, I would argue that the WeWork bull case and bear case have more in common than it seems: both are the logical conclusion of effectively unlimited capital. I don’t think there is unlimited capital. If that were the case, every idea, every startup, every person would be able to get the capital they need/want. Will capital availability dry up like it normally does?

Lessons from a Diverse Venture Capital Portfolio

This is going to be BIG.

The diversity is the direct result of our mission—to build the most accessible venture capital fund in NY. When you conflate hyperbole for ambition and realism for lack of aggressiveness, you will ultimately wind up shutting out a lot of groups from the game of risk seeking capital and opportunity. Brooklyn Bridge Ventures , the pre-seed and seed stage VC fund I run in NYC, has invested in 64 companies in the last six and a half years.

Foundations, Philanthropy + Entrepreneurship: How to Capitalize Entrepreneurial Strategies

Source Link

What role do foundations play in entrepreneurship—and how do they measure success? Entrepreneurial Communities Best Practices

Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? ’ But do you want to start a relationship with your most important supplier – that of capital to fuel your business – by avoiding talking about his or her expectations in terms of rights or privileges? How about you close your first capital (say $500,000) and put in the docs that you have up to [90] days to raise an additional $1 million at the same price at your discretion. This week.

Funding Demystified! Free Course Offers Founders a Guide to Raising Capital

TechStars

How do venture deals really work? Whether you’re an entrepreneur raising funds or an investor looking to take your venture finance skills to the next level, Brad Feld and Jason Mendelson have the answers for you.

When Money is Not Enough: Angel Roles & Human Capital

The Seraf Compass

? When entrepreneurs seek out angel investors, the majority are looking for financial capital. Very few entrepreneurs understand the importance of finding smart investors who will invest both Financial and Human Capital. Read on for a look at what roles angel investors can perform for a startup company

From Accelerators to Venture Capital: What is best for your startup?

Gust

The post From Accelerators to Venture Capital: What is best for your startup? How To Fundraise Starting Your Company accelerators angel funding incubators venture capital

Changes in the Venture Capital Funding Environment

Both Sides of the Table

There was an explosion in number of startups both because it was cheap and there was tons of available capital. Be thoughtful about from whom you raise capital.

Ten Realities of Taking Venture Capital Money

This is going to be BIG.

If you take venture capital money. 3) You will almost certainly take more venture capital money after that. 8) There are smaller exit opportunities you will not be able to take because your capital structure makes them financially unattractive. Venture Capital & Technology 1) You increase the chances that you may not be CEO of your own company one day--and that also might be the best thing for its long term success.

A Deep Dive into What Has Really Changed in Venture Capital

Both Sides of the Table

I’ve heard a lot of people question whether there is too much money in venture capital chasing too few great deals. “We’re Others believe that new business models are emerging that could replace venture capital all together.

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.

Women Face More Challenges When it Comes to Venture Capital Funding

Smart Hustle Magazine

The number one challenge women face is a significant disadvantage in securing access to venture capital funding compared to their male peers. of all venture capital in the US went to companies founded solely by women. There are more than 11.6

What to Expect When You're Expecting Venture Capital Returns

This is going to be BIG.

You incorporate expected company returns, mortality rates, and fee structures to try to predict how a venture capital fund works from a cash in, cash out, and NAV standpoint. And no, the numbers don't exactly add up--but they're more than close enough for venture capital.

Venture Capital Q&A Session

Both Sides of the Table

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about.

The Thin Skin of the Venture Capital Market

This is going to be BIG.

The fact is, it''s just not cool to criticize the investing side of the venture capital market. For the most part, journalists give startups a free pass when venture capital money is raised or when companies that clearly seem to have failed get "acquired". Venture Capital & Technology The other day, I saw that one of my favorite products, Slack, just raised $120mm at a $1.12 Billion valuation. The company is doing about a million a month in recurring revs.

10 Misperceptions About Venture Capital

This is going to be BIG.

Venture Capital & TechnologyTweet. 1) You need it. Not every company raises venture capital—most don’t. Not raising gives you flexibility about the market size you want to go after, speed of growth, and de-risks your plan—because once you start spending someone else’s money, the clock starts ticking on your “out of cash” date. Slow and steady isn’t a bad thing. 2) Only 22 year old hacker dudes get funding.

Why 2017 Should be a Great Year to Raise Venture Capital

Both Sides of the Table

Recently Upfront Ventures published its outlook for the technology startup world and venture capital overall titled it “ WTF Happened to Winter ?” venture-capital startup

Conscious Capitalism

Fink About It

The post Conscious Capitalism appeared first on Fink About It. In June of 2010, something really extraordinary happened in the world of Philanthropy. Bill Gates and Warren Buffet began recruiting for what is known as “The Giving Pledge.”

Six Reasons Not to Invest in a Venture Capital Fund

This is going to be BIG.

I recently met up with an investor who I'm not totally sure is a fit for my second fund , so it was important to me that I was upfront about all the reasons why he shouldn't come in. The last thing you want as either a founder or even a VC is to have an investor get stuck with you when you're not on the same page about expectations. So here's all the reasons I told him he shouldn't be in: 1) Fund investing is boring. Let's be clear.

Checklist for Launching a New Venture Capital Fund

David Teten - VC

As a prequel, here are some of the resources I’ve found helpful in launching a new fund: What it takes to start your own venture capital fund. How to Launch a Private Equity / Venture Capital Fund. The post Checklist for Launching a New Venture Capital Fund appeared first on David Teten. Fund Management Venture CapitalI posted a while ago my syllabus on how to manage and invest a VC fund.

The Long Haul Of Building A Venture Capital Firm

Haystack

Some “made it” in their first two funds, like Josh Kopelman with First Round, or Mike Maples and Ann Mira-Ko with FLOODGATE; some quickly ramped large funds and took about a decade to arrive, like Marc Andreessen and Ben Horowitz with a16z; or someone like Fred Wilson and Brad Burnham, who built USV out of the ashes of a previous fund that dissolved; or Peter Hebert and Josh Wolfe from Lux Capital often muse that in building their firm, “we became a 17-year overnight success.”

This Week in Venture Capital – Episode 3

Both Sides of the Table

Investors: Foundation Capital (lead), with existing investors: Morgenthaler Ventures, Norwest Venture Partners, Canaan Partners. Investors: FirstMark Capital (Amish Jani)(lead), with existing investors: Accel Partners, Bessemer Venture Partners, First Round Capital, Reid Hoffman.

This Week in Venture Capital – Episode 4

Both Sides of the Table

Blippy (and their competitor Swipely – which was founded by Angus Davis , who has a great track record from both Netscape and TellMe, both aim to capitalize on the era of consumers living more openly ala Twitter, Foursquare and Gowalla. Tags: This Week in Venture Capital

This Week in Venture Capital – Episode 2

Both Sides of the Table

I was on This Week in Venture Capital (TWiVC) again this week with Jason Calacanis. mm in Series A; IdealLab ( Bill Gross ), Index Ventures ( Danny Rimer ), Revolution LLC ( Steve Case ), First Round Capital , BetaWorks , Jason Calcanis.

My Least Favorite Part of Venture Capital

This is going to be BIG.

I'm a lead investor. That means I'm usually the first person to put down a price on what your company is worth--a dollar value on months, if not years, worth of your work, blood, sweat, tears, stress, etc. Here's a piece of paper that says how much I think your dreams are worth." The reality is, any price that I put down at the stage that I invest isn't going to feel like enough--and if it doesn't feel like enough, I'm probably grossly overpaying. But, you don't feel like that as the founder.

Outside capital: do or die?

Gust

A gigantic percentage of startup literature concerns how to raise capital. Strategically, the advantage outside capital provides is obvious: you can go faster. On the flip side, there are certain businesses in which raising capital is indeed critical. Invested Interests angel investment angel investors board of advisors entrepreneurs entrepreneurship execution exit strategy fundraising startups tactics venture capital

World After Capital: Psychological Freedom (Fin)

Continuations

NOTE: Today’s excerpt from my book World After Capital ends the chapter on psychological freedom. world after capital psychological freedom humanismThe prior excerpts covered the freedom to learn , to create , and to share. The following ties this back to one of the central chapters on Humanism. Psychological Freedom and Humanism Self-regulation, through some kind of mindfulness practice, lies at the heart of psychological freedom. It allows us to separate wants from needs.

World After Capital: Freedom to Create

Continuations

NOTE: Today’s excerpt from my book World After Capital continues the chapter on psychological freedom. world after capital psychological freedom creatingFreedom to Create The next step in the Knowledge Loop after learning is creating. Here too we need to work on our freedom. Picasso once said: “we all start out as artists, the challenge is to remain one.” My personal experience bears that out.

World After Capital: Plan for Part Four

Continuations

NOTE: I have been posting excerpts from World After Capital on Mondays. world after capital part fourBut because I am doing a more substantial rewrite of Part Four, today’s post describes what I am planning to cover. I want Part Four to be more practical by pointing out ways we can take responsibility today for making the transition to the Knowledge Age. Here are areas I am planning to cover. I am curious if anyone has additional suggestions.

6 Steps to Raising Venture Capital in 6 Months

Gust

To raise capital as a very early-stage business, you have to convince investors that your current size isn’t indicative of where you will be in the future. A woman you don’t know tells you that she’s going to run a marathon of 7-minute miles. She’s never run a long distance race before.

Get to Know Richard de Silva of Highland Capital

Both Sides of the Table

He was introduced through mutual friends to Highland Capital. At the time consumer internet venture capital was still suffering from the collapse of the Tech Bubble. But it was an attractive time to enter because the successful internet companies were scaling and in need of capital.

The Trouble with Venture Capital Data

This is going to be BIG.

There aren't many people who get the chance to analyze venture capital fund return data. If you have a $500 million fund, and you invest in two unicorns, and somehow maintain your pro rata, owning 20% of the fund, you still haven't even returned capital to your LPs. You'd have to work for a very limited number of fund performance tracking firms, like Thomson Reuters, Cambridge, etc., or be an institution big enough to see a ton of different funds over time.

Faulty Logic in the Venture Capital and Female Founder Discussion

This is going to be BIG.

We all have our inherent biases and what I am not arguing here is that the venture capital world is a fair playing field for anyone. I repeat: I AM NOT ARGUING THAT VENTURE CAPITAL IS FAIR TO ANYONE. We really don''t know, because we''re missing some critical information: HOW MANY WOMEN ARE SEEKING VENTURE CAPITAL? I AM NOT ARGUING THAT WOMEN AREN''T SEEKING VENTURE CAPITAL. I repeat: I AM NOT ARGUING THAT VENTURE CAPITAL IS FAIR. Venture Capital & Technology

World After Capital: Freedom to Learn

Continuations

NOTE: Today’s excerpt from my book World After Capital continues the discussion of Psychological Freedom by examining how we can make ourselves free to learn. world after capital psychological freedom learningFreedom to Learn Young kids ask upwards of three hundred questions a day. 122] Humans are naturally curious, and it’s precisely this curiosity that has driven so much of our progress.

Why are some venture capital firms not funding women?

Gust

The facile answer to this assumptive question is “because some women are not seeking funding from venture capital firms” But there is actually quite a bit of truth in both statements. Invested Interests Astia entrepreneurs funding investors LATISM venture capital firms women

No trade-off with innovation and capital

Innovation 2 Enterprise

With limited capital — financial and human — for the first few years of a startup’s life, it’s a perpetual challenge of either/or. However, there is one budgetary trade-off that Oklahoma absolutely should not make: When it comes to innovation and capital, it is not an either/or. In some ways, Oklahoma was far-sighted in committing to innovation and capital. million to fund a then unique source of early stage capital. By Scott Meacham. Copyright © 2019, The Oklahoman.

Startup Capital: Feast or Famine?

Gust

For years there has been a pervasive opinion across the entrepreneurial landscape that the US has a shortage of capital required to startup and grow new ventures. But, what evidence do we have of this shortage of capital? We have no measure of the changes in available capital resources from entrepreneurs and their friends and family, but we have no reason to believe they have changed radically over the past few years.

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.

Understanding Changes in the Software & Venture Capital Industries

Both Sides of the Table

In this three-part series I will explore the ways that the Venture Capital industry has changed over the past 5 years that I would argue are a direct result of changes in the software industry, not the other way around.

Why Venture Capital is So Much More Compelling Now

Both Sides of the Table

It’s not hard to find people willing to write the narrative that “venture capital is not an asset class” or “venture capital has performed terribly.” Having worked through the data with Glenn I am even more optimistic about venture capital than I was even a year ago. Companies are now raising much more capital in the private markets now before they go public.

The Experience of Being a Limited Partner in Venture Capital

This is going to be BIG.

You run X amount of capital and Y percentage of that is allocated to venture capital. Partnership investing is boring. You give someone your money and, once a quarter, they give you a report that says what they did with your money. That's because, for the most part, fund investors fall into two categories: institutions and individuals. If you're an institution, you basically care about returns and that's it.

Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

Yesterday I wrote Part 1 of the series on the changes to the software industry over the past decade that has led to changes in the venture capital industry itself. Maybe Micro VCs will get larger and emulate a multiple-partner strategy like True Ventures or First Round Capital.