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.

Lessons from a Diverse Venture Capital Portfolio

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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. 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.

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Ten Realities of Taking Venture Capital Money

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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. 10) You will face more competition as venture investment signals that what you''re doing may be attractive. Venture Capital & Technology

The Thin Skin of the Venture Capital Market

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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.

Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? I have never come across a sophisticated A, B or C round venture capitalist who thinks convertible notes are a smart move for entrepreneur or investor. ’ 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? This week.

10 Misperceptions About Venture Capital

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Not every company raises venture capital—most don’t. Venture Capital & TechnologyTweet. 1) You need it. 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.

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

Six Reasons Not to Invest in a Venture Capital Fund

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Hopefully, the fund gets some nice wins early and you start to get your money back, but when you're in a venture fund, you're in for a really long haul. 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.

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

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Raising a venture capital fund is hard enough. Since fundraising is often about who you know, and most people tend to be in networks that look like them, this exacerbates the problem of diversity in who winds up getting venture dollars.

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. This 2009 piece from @fredwilson (literally the best in the biz) predicted significant venture industry contraction when in fact the last 10yrs have seen massive expansion. 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.

What to Expect When You're Expecting Venture Capital Returns

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One of the first things I did when I joined the venture asset class as a lowly institutional LP analyst in 2001 was to build the VC fund cashflow model. 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.

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

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In venture, it’s all about getting an opportunity to make partner and being included in the carry—the economic upside of a fund. There are so many different ways to interpret the data on who gets venture and why. There are lots of problems with access to venture connections that account for some of this, but how you invest and pay your own team is the one indisputable thing that is in a VC firm’s control.

Faulty Logic in the Venture Capital and Female Founder Discussion

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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. billion went to women-led ventures.". 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.

My Least Favorite Part of Venture Capital

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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.

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 Trouble with Venture Capital Data

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There aren't many people who get the chance to analyze venture capital fund return data. Analyzing venture returns without even looking at the 90's? Looking at interim IRRs of young funds, especially during boom periods in venture isn't predictive of outcomes. If you don't think that it's harder to put more money to work in venture than less, in a world where companies do more with less, and great deals are scarce, than I don't know what color the sky is in your world.

How to Get into Venture Capital - An Update

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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.

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.

Why being a VC sucks. Advice to anyone who wants to get into venture capital.

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I probably get around a dozen e-mails a week asking me how to get into venture capital. On top of that, anytime I talk to anyone who wants to get involved in startups but isn''t sure what they want to do, inevitably, I hear, "And then I was thinking maybe I should look into venture capital, too.". I''ve never really debated people on why they want to get into venture in the first place, even though a lot of people have misconceptions of it.

The Experience of Being a Limited Partner in Venture Capital

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You run X amount of capital and Y percentage of that is allocated to venture capital. They don't have a directive to be invested in venture and they're not aiming to make some target return to pay out benefits or university operating expenses, etc. 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.

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

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Today's top founders will undoubtedly start something new in the future, but they won't make up the majority of innovators going forward--just as prior generations of venture backed founders don't make up a majority of those who are succeeding today. Opening up our circle to create and scale genuine engagement for people outside of typical venture networks is how we do business—and we’re getting exceptional deal flow because of that.

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.

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.

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. Investors: Google Ventures.

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: True Ventures, Social Leverage (Howard Lindzon). Investors: Union Square (lead), Spark Capital (lead).

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.

The Long Haul Of Building A Venture Capital Firm

Haystack

On a slightly smaller impact scale, there isn’t a lot of content out there about “How to build a venture fund.” Most of them won’t see a Fund II, and very few, if any, will become a permanent part of the venture fabric. While I don’t have the ambition to build “out” a huge fund with a huge team and scaling capital, raising successive funds is not easy and building out real firm infrastructure is a grind.

The Quality You Never Hear Pitched When People Want in to Venture Capital

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I think of venture capital as a service business. In my effort to rewrite the deck for my next fund, I've been spending a lot of time reflecting on what it is that I try to do. A lot of people can say they work hard, or work smart, but that doesn't leave me off where I think I'm setting my goals. I've been trying to figure out if there's any differentiation in how I do my job versus how other people might assume it gets done.

How to Build a Successful and Diverse Venture Capital Portfolio Without Really Trying

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After checking out The Information's "open dataset" on diversity in venture capital , I felt pretty disappointed. I went back and calculated the number of companies in the first Brooklyn Bridge Ventures portfolio who have at least one founder who is female, from an underrepresented minority group, or LGBT. Most people need a little bit of capital to bring a product to market--or they're an engineer.

The 99: How the SEC protects you from venture capital returns.

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Take venture capital, for example. To benefit from the explosive growth of companies like Uber, Airbnb, Dropbox, etc, you had to fit in either one of two categories: be an angel investor already in an inner circle of experienced angels and entrepreneurs, largely located in Silicon Valley, or be an investor in a venture capital fund that backed those companies. Below that and they need to keep you from investing in really risky stuff, like venture capital.

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.” I presented the deck below – which was prepared with the great help of Upfront Venture’s Principal Jordan Hudson – at Dave McClure’s must attend event called PreMoney with much more data and narrative than I had in my blog post.

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 Fantastical, Stupendous, Wonkariffic Tale of How Ample Hills Creamery Raised a $4 Million Venture Capital Round

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It's a story that just hit a milestone--a $4mm round of venture funding that I'm ecstatic to say Brooklyn Bridge Ventures just led. I'm joined by Lerer Hippeau Ventures, Red Sea Ventures, NucleasHG, the founders of Seamless, a host of extremely helpful angels, and a CircleUp syndicate led by my friend Tom Potter, co-founder of Brooklyn Brewery. At least, that would be the title if somebody made a kids movie out of it.

A framework to think about pricing seed, angel, and venture capital rounds

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2) Supply and demand of capital willing to invest in your company. Sometimes, this also relates to capital requirements of what the team needs. Note that, to even get venture in the first place, you are special. Venture Capital & TechnologyHow do you price a round? Its one of the most often asked questions and yet I've never seen a great answer given. It seems to me that the most important factor in pricing your round isn't your progress or your idea.

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. Venture capital is in the process of its own creative destruction with new market entrants and new models of innovation at the precise moment that our industry itself is contracting.

The Future of Startup Ecosystems Across the Globe

500

This year we dove headfirst into the rise of corporate venture capital, the changing nature of venture capital education, and the important task of startup ecosystem building. From May to July 2019, we surveyed over 100 unique corporate venture capital.

How Developed is Global Venture Capital Market?

Tomasz Tunguz

Just where is the US venture market relative to the rest of the world? The chart above shows the compound annual growth rate of venture investment rounds A through D in ten fastest growing venture markets plus the US from 2010-2016. It’s wonderful to see the expansion of venture capital across these geographies and especially at very healthy growth rates. This chart illustrates the depth of the capital pool available to startups.