Playing the Long Game in Venture Capital

Both Sides of the Table

This “overnight success” was first financed in 2004. The abundance of late-stage capital is good for us all. Entrada Ventures? —?that Interim liquidity plus long-term capital gains work really, really well.

Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? It’s like we need a finance 101 course for entrepreneurs. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. Plus, if you price it then when you go to your next round of financing there is no haggling with future investors on what the note should be priced at. This week.

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Allocate banks $5M to open up venture capital fund access

TechCrunch

The world of venture capital investing is a relatively small one, and relationship-based to boot. The company, founded by Samir Kaji and Hana Yang in February 2021, is developing an approach to venture capital fund investing that provides a way for investors of any size to participate.

Venture Capital is About Human Capital

Both Sides of the Table

Most VCs did well academically and had enough career success that a venture firm was willing to give them an investment role or they were able to raise their own fund. Fundamentally venture capital is about human capital. Importantly, we recently announced a $30 million financing that gives us the resources we need to build a global enterprise software company. In the end I know the only true differentiator in venture capital is the company you keep.

Is there a creed in venture capital?

TechCrunch

Scott Lenet is President of Touchdown Ventures. “Darth Ventures” and the efficacy of Sith management techniques. How should venture capitalists and corporate innovators assess Din Djarin, the protagonist of The Mandalorian? Scott Lenet. Contributor. Share on Twitter.

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. There are obvious reasons the industry has had less-than-desirable returns, including: massive over-funding of the sector, huge increases in inexperienced venture capitalists that took a decade to peter out, and the massive correction in the value of the public stock markets that closed many exit opportunities for half a decade. This article originally ran on PEHub.

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. Mike Stern (wasn’t sure which one so leave a comment if it’s you): Q: “is it possible to sell your startup without venture investment if the company has big traction and a large user base?&#

What’s going on with fintech venture capital investment?

TechCrunch

Over the next few weeks, the venture capital industry will compile and release data concerning its Q4 2020 performance, capping a year that saw the world of private capital freeze , thaw and burn. What happened to fintech venture capital investment in Q4 and 2020?

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 Venture Capital – Episode 4

Both Sides of the Table

VC Financings: 1. Zong is obviously doing something right since they are now the preferred mobile payment platform for Facebook’s mobile credit offering but will compete against some serious guns – Boku has raised nearly $40 million from Benchmark, Index, DAG and Khosla Ventures – the A list of who’s who VCs. Investors: August Capital (David Hornik) (lead) with existing investors Charles River Ventures. Investors: Google Ventures.

This Week in Venture Capital – Episode 3

Both Sides of the Table

In addition to the P2P deals covered below, on the show we also talked about some of my favorite financing startups ( Wonga in the UK run by Errol Damelin , who is a superstar) and Affordit.com run by serial (and I mean serial!) Investors: Foundation Capital (lead), with existing investors: Morgenthaler Ventures, Norwest Venture Partners, Canaan Partners. Investors: True Ventures, Social Leverage (Howard Lindzon). OK, it’s official!

What I wish I’d known about venture capital when I was a founder

TechCrunch

Andy Areitio is a partner at the early-stage fund TheVentureCity , a new venture and acceleration model that helps diverse founders achieve global impact. So, I’ve decided to share the main lessons about VC that I wish I’d known when I was a startup founder chasing venture capital.

BadVR is using government grants to build a business that’s independent of venture capital

TechCrunch

The first step was finding money from the government’s Paycheck Protection Program to get more capital coming in and maintaining its headcount. Eventually, the company managed to land additional financing in the form of a $1 million grant from the National Science Foundation.

How to Win Consulting, Board, and Deal Roles with Private Equity and Venture Capital Funds

David Teten - VC

Would you like to work with private equity and venture capital funds? There are relatively few jobs directly inside private equity and venture capital funds, and those jobs are highly competitive. Venture capitalists often come from an operating background.

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. Amazon in turn led to the formation of an earlier stage of venture capital now led by what I call “micro VCs&# who typically invest $250-500k in companies rather than the $5-7 million that VCs used to invest. Or at least venture-style returns. Not to mention providing the capital for growth.

As venture capital rebounds, what’s going on with venture debt?

TechCrunch

The American venture capital world has staged an impressive comeback from the early months of the COVID-19 pandemic. Those tailwinds helped the venture capital world get back into its own game in a big way, leading to Q3 being an outsized quarter for domestic venture capital activity.

Launching a Portfolio Acceleration Platform at a Venture Capital or Private Equity Fund

David Teten - VC

Almost every private equity and venture capital investor now advertises that they have a platform to support their portfolio companies. As an agenda for each meeting, I suggest: – How can we most add value, in addition to helping with financing? Dan Kozikowski, Partner and Head of Platform, First Mark Capital , said to me, “Firms should match services to the stage-specific needs of companies. All content is developed and delivered by the Real Ventures partners.

Launching a Portfolio Acceleration Platform at a Venture Capital or Private Equity Fund

David Teten - VC

Almost every private equity and venture capital investor now advertises that they have a platform to support their portfolio companies. As an agenda for each meeting, I suggest: – How can we most add value, in addition to helping with financing? Dan Kozikowski, Partner and Head of Platform, First Mark Capital , said to me, “Firms should match services to the stage-specific needs of companies. All content is developed and delivered by the Real Ventures partners.

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. Here are six ways to overcome the funding gap: Get a Mentor - find yourself someone who has successfully obtained venture capital funding. There are venture capital firms out there that are dedicated to closing the gender funding gap.

Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First

Both Sides of the Table

I know that the tone of the title and post will seem a bit aggressive for a post from a venture capitalist on fund raising. If you want to raise venture capital more easily the advice could be quite practical and counter-intuitive. Many companies that are raising B or C venture capital rounds right now raised their initial money in 2005-2008. They often have “dead&# or “tired&# investors who have stranded capital. Clean up your own shite.

The New Business Preservation Act and the Tradition of U.S. Federal Government Support for Entrepreneurship and Venture Capital

Ian Hathaway

Senators led by Amy Klobuchar introduced the New Business Preservation Act to incentivize venture capital formation around the country. federal government involvement in the formation and development of the venture capital industry. Earlier this month, a group of U.S.

Do venture capital firms or private equity funds offer debt financing for startups?

Gust

The direct answer to your question is NO, VC and PE funds do not provide debt financing for any companies. For venture capital, this is typically ten times the invested capital, and those returns can only be achieved through equity appreciation, not debt service. Invested Interests debt financing private equity funds startup VCs venture capital firms

Financing for students startup StudentFinance raises $5.3M seed from Giant and Armilar

TechCrunch

Fintech startup StudentFinance — which allows educational institutions to offer success-based financing for students — has raised a $5.3 million) seed round co-led by Giant Ventures and Armilar Venture Partners.

Embedded finance startup Banxware raises €4M seed

TechCrunch

Embedded finance — the idea of offering financial products where customers are already congregating via white label solutions and APIs – isn’t an entirely new concept. Leading the round is Force over Mass, and VR Ventures.

Why Was Winter in Venture Capital Funding so Short?

Both Sides of the Table

It was only a year ago that many in the Venture Capital industry were predicting that “winter was coming” and to be fair the author of this post was chief amongst them. While this it total FDI as opposed to just venture, it should give you an indication of the international trend. billion in venture capital funds with one A-round fund and one late-stage fund. One major group that has ramped up its venture investments have been corporates.

6 Steps to Raising Venture Capital in 6 Months

Gust

Financeable businesses require investors to believe that: 1) you will win at what you’re doing; and 2) the market in which you’re operating is worth winning. 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. Recently, I met with an entrepreneur to discuss her financing strategy. Some of the original people who rejected me ended up financing me later on.

The global inequity in venture financing is staggering

TechCrunch

The global venture capital ecosystem is inequitable. In the United States’ mature venture capital market, an entrepreneur’s race, gender and age help determine who has access to capital.

Founders: How well do you really understand seed-stage financing?

TechCrunch

Understanding the basics of venture financing can help founders raise on better terms. We’ll cover: How financing works: SAFEs versus equity rounds. How financing works: SAFEs versus equity rounds. Venture financing takes place in rounds. Yin Wu.

In Venture Capital, Should You Be a Momentum or a Value Investor?

David Teten - VC

As a venture capitalist, should you be a Momentum or a Value investor? The first is Momentum Investing , “a strategy to capitalize on the continuance of an existing market trend”, which usually meaning that the price has been rising in the recent past. You identify the “hot” companies; network into them; and sell them on the value of accepting your capital. Today, some Momentum-centric venture capital investors have high paper returns.

Why We Must Have Zero Tolerance for Sexual Misconduct in Venture Capital

Both Sides of the Table

I titled this post “We Must Have Zero Tolerance in Venture Capital” but of course I could just say “zero tolerance anywhere” because that’s true. Letting him lecture finance students?  —  @msuster Why We Must Have Zero Tolerance for Sexual Misconduct in Venture 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.

Revenue-based financing: The next step for private equity and early-stage investment

TechCrunch

Revenue-based investing ( RBI), also known as revenue-based financing, or revenue-share investing, 1 is a natural next step for the private equity and early-stage venture investment industry. billion in capital. zeros) for the amount of capital they have allocated thus far.

United Nations Development Program and 500 Startups Join Forces to Bridge the World of Impact Financing and Tech Startups

500

ImpactAIM Indonesia’s goal is to bridge the world of impact financing with the world of tech startups in Indonesia. The post United Nations Development Program and 500 Startups Join Forces to Bridge the World of Impact Financing and Tech Startups appeared first on 500 Startups. All imapactaim indonesia indonesia accelerator jakarta Southeast Asia southeast asia accelerator southeast asia startups southeast asia venture capital united nations united nations development program

Startup fundraising is the most tangible gender gap. How can we overcome it?

TechCrunch

Year-in, year-out, the gender gap in venture capital investment continues to be a problem women founders face. This should come as no surprise, given that fintech combines two sectors traditionally dominated by men: finance and technology. Ximena Aleman. Contributor.

Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. Legal costs of early stage financing should be cheap – this is one of the final remaining arguments for convertible debt but even Paul acknowledges that this is no longer necessarily the case: “Different terms for different investors is clearly the way of the future.

How do US venture capital firms view an entrepreneur who decides to go for funding to the US with a business plan, and then will need a visa?

Gust

The most important is that venture capital firms simply do not fund business plans. But I wish you luck with your venture! Invested Interests business plan entrepreneurs startups US venture capital firms visa The disappointing fact is that this is a highly, highly unlikely scenario, for several reasons. They fund companies.

Interview on Revenue-Based Finance and Flexible VC

David Teten - VC

Keith Harrington of Novel Growth Partners and Founder, Revenue-Based Finance Network , just posted the recording of an interview with me on revenue-based investing ; flexible VC ; and their future. Alternative VC Venture Capital Versatile VC

Interview on Revenue-Based Finance and Flexible VC

David Teten - VC

Keith Harrington of Novel Growth Partners and Founder, Revenue-Based Finance Network , just posted the recording of an interview with me on revenue-based investing ; flexible VC ; and their future. Alternative VC Venture Capital Versatile VC