Accelerating Working Capital

A VC: Musings of a VC in NYC

As policy makers around the world seek to mitigate the economic shock from this pandemic, one less obvious but powerful place to look are working capital flows. We also need our capital markets to work so actions like the Fed is taking are necessary and important. Yes we do need direct relief for small businesses like the forgivable PPP loans. We also need things like payroll tax deferrals and other relief from the CARES Act.

The Future of Corporate Venture Capital

500

How has corporate venture capital changed? The post The Future of Corporate Venture Capital appeared first on 500 Startups. All International Investor Education Venture Capital InvestingThe following is an excerpt from 500’s CVC report. In the decade since the Great Recession, we have seen digital upstarts – taking advantage of disruptive technologies from AI to IoT – reshape the economy and the corporate pecking order.

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An Invitation to Explore and Adopt “Capitalism With Care”

Entrepreneurs' Organization

Is COVID-19 the catapult that will vault us into a new era of Capitalism With Care ? During the Great Recession of 2008-10, Kent guided dozens of CEOs and their companies successfully through the crisis and positioned them to capitalize on the economic expansion that followed.

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. Venture Capital is About Human Capital was originally published in Both Sides of the Table on Medium, where people are continuing the conversation by highlighting and responding to this story.

The Seven Flavors of Capital (for Startups)

Paul G. Silva

Startups need capital to launch and grow. What many entrepreneurs don’t know is that startup capital comes in many different flavors. For instance, I can’t tell you how many times I run into an entrepreneur who “knows” they need to raise equity capital from venture capital when royalty financing would work for them, cost less, and be non-dilutive*. Each flavor has its own pros and cons and is appropriate for different situations.

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.

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.

Techstars and HBCUvc Launch 10-City Startup Weekend Tour to Promote Diversity in Entrepreneurship and Venture Capital

TechStars

October 2, 2019 – Techstars , the worldwide network that helps entrepreneurs succeed, and HBCUvc , a nonprofit fellowship program providing Black and Latinx students with training and mentorship in venture capital, today announced the launch of a joint 10-city Startup Weekend tour across the country. This partnership will directly impact those who choose a career in venture capital and those who become entrepreneurs. WASHINGTON, D.C.

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?

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.

The Venture Capital Math Problem Revisited (aka How Could You Be So Wrong?)

A VC: Musings of a VC in NYC

Back in 2009, I wrote a post called The Venture Capital Math Problem. In that post, I argued that the venture capital business could not sustain more than $20bn a year of new capital coming into it and continue to produce good returns to the investors in VC funds. The venture capital business has been raising north of $50bn per year for much of the last decade and so far, the returns continue to look quite good.

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

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.

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.

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.

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. The other major trend of 2012–2015 was the entrance of “non VCs” into late-stages of venture capital , which mostly consisted of hedge funds, mutual funds, corporate investors, sovereign wealth funds and even LPs doing direct deals. Be thoughtful about from whom you raise capital.

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

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.

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. The most successful of these businesses will still need venture capital to scale their businesses. The number of venture capital funds has shrunk by two-thirds.

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.

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. Techstars co-founder Brad Feld and Techstars mentor Jason Mendelson—both renowned venture capitalists, partners at the Foundry Group, and authors of Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist —are again giving their FREE online course Venture Deals.

The Easiest Way to Bring Diversity to Venture Capital: Raise the SEC's LP Count Limit

This is going to be BIG.

Raising a venture capital fund is hard enough. This is all context around what the investor number caps mean for the kind of money you need to ask people for in order to build a decent venture capital fund.

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.

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 is all about finding the extraordinary. Here's another way to look at it--the cost of capital argument.

Money. show me! If you want to change Venture Capital, focus on LPs. #openlp

This is going to be BIG.

There have been a lot of calls for VC firms to make more hires from the Black and Brown community, as well as to hire more women. Not all hires, however, are made equally. In venture, it’s all about getting an opportunity to make partner and being included in the carry—the economic upside of a fund. Not only is carry a means of economic mobility, but it’s also a reflection of where decision-making authority is within a fund.

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. Every year I try to answer the question of “what has changed in the Venture Capital industry” and this year my colleague Chang Xu and I took a deep dive through the data and called many of our peers for confirmation.

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.

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.”

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

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.

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.

Accessibility as an Advantage in Venture Capital: Why Creating Value for Everyone in the Community Wins

This is going to be BIG.

Just yesterday, I got a note from a female founder of color: “Earlier this year you invited me to one of your off sites and that made a huge difference for me as a founder raising capital for my first company… I'm just looping back with the individuals who were helpful and who said "yes" to me during a pretty grueling process. Last week, we ran Fall Fundraising Days , which featured 11 NYC events on raising capital that 800+ individuals attended across the week.

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.

How to Get into Venture Capital - An Update

This is going to be BIG.

About seven years ago, I wrote a post on breaking into venture capital and I continue to point the five or six people a week who ask me how to break into venture. The candidates for venture capital roles are already out there and usually in plain sight and there simply wasn''t anyone out there doing what Amrit was doing who wasn''t already fulltime at a firm. but in a city like New York, with it''s access to capital, "getting in" shouldn''t be the hard part.

This Week in VC with Mo Koyfman of Spark Capital

Both Sides of the Table

We had a special edition of This Week in Venture Capital this week shooting out of the Next New Networks offices in New York. Our guest was Mo Koyfman of Spark Capital. The Spark Capital website (it’s one of my favorites). Tags: This Week in Venture Capital