How Would a Person Start a Venture Capital Fund?

SaaStr

Assuming you have at least a partial track record, then, there are two-and-a-half basic paths on how to start a venture capital firm. Start Small before your start a Venture Capital Firm. Grow within a Venture Capital Firm. The 2 and 20 Venture Capital Model.

The Pros and Cons Of Working in Venture Capital

SaaStr

Q: What are the pros and cons of working in the venture capital space, and why? I’ll list the pros and cons, but before we get there, it’s important to note a few things: Venture Capital is a tiny industry. There are very limited promotion paths in venture.

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How Venture Capital Has Changed Since Covid-19

SaaStr

Q: How is Venture Capital difference since Covid-19? SaaStr New New Venture 2020. The post How Venture Capital Has Changed Since Covid-19 appeared first on SaaStr. At first — and only briefly — things slowed way back.

What’s Really Happening in Venture Capital, Right Now

SaaStr

First, come here from 20+ of the top VCs in SaaS and Cloud for FREE at our next big digital event, the next SaaStr Summit: The New New in Venture on May 27th. The post What’s Really Happening in Venture Capital, Right Now appeared first on SaaStr.

One Simple Rule On How Much To Pay Yourself Once You Raise Venture Capital

SaaStr

Q: How do Venture Capital Firms really feel about founder salaries? Let me add just one thought to the discussion on founder salaries, once you are venture-backed. The post One Simple Rule On How Much To Pay Yourself Once You Raise Venture Capital appeared first on SaaStr.

Do You Really Need Venture Capital To Build A Top SaaS Company?

SaaStr

Q: How many companies in the Fortune 500 raised venture capital? Why are so many people obsessed with venture capital when many successful businesses didn’t raise it? How many got there without raising venture capital?

Webinar: What’s Going On in Venture Capital Right Now with Byron Deeter, Bessemer Venture Partners

SaaStr

Next in this series is one of the community’s favorite speakers, Byron Deeter of Bessemer Venture Partners. Sign up here to join Byron and me on Thursday at 12:15pm where we do a deep dive on what’s going on in venture capital, fundraising and Cloud right now.

The Current State of Venture Capital and Cloud with Byron Deeter, Bessemer Venture Partners

SaaStr

Over 1,500 of you registered for an incredible deep-dive we did yesterday with Byron Deeter, Partner at Bessemer Venture Partners. The agenda: What’s happening in venture today. When to raise capital.

Venture Capital in 2020/2021 and “The Postmates Effect”. I.e., It’s OK to Be #2 or #3 Now.

SaaStr

He said the biggest change in venture capital wasn’t investing over Zoom, or Cloud multiples, or even the pace of investing today. No, the biggest change in Venture Capital in 2020-2021 is what he called “The Postmates Effect” That Postmates was arguably #3 to Doordash and UberEats, and still was worth billions. The post Venture Capital in 2020/2021 and “The Postmates Effect” I.e., It’s OK to Be #2 or #3 Now.

Why Do Some People Consider Venture Capital a “Young Person’s Game”?

SaaStr

It doesn’t take that long in venture to make a decent salary. The post Why Do Some People Consider Venture Capital a “Young Person’s Game”? Because it takes so, so long to make money from it. At least from very early-stage investing.

How Bridge Rounds Work in Venture Capital: Messy, Full of Drama, and Not Without High Risk

SaaStr

I’ve watched many bridge rounds over time from a far, and took $500k in bridge capital at EchoSign myself when our seed round didn’t end up being quite enough to get us to the Series A. Simply put, it’s another round of venture financing from the same investors as the last round. Each bridge round requires a VC burning some political capital. If she/he has gone to another firm, there’s no political capital to spend.

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. Some teams even started to generate revenue during the event, while others went on to raise funds from angel investors or venture capitalists. WASHINGTON, D.C.

Just How Inaccurate are Quarterly Venture Capital Activity Reports?

Tomasz Tunguz

Each quarter, a group of analysts, including me, publish analysis on the trends in the venture capital market. There’s a risk to those assessments: the data is incomplete since not all rounds founders close within a quarter are reported in that quarter.

How do corporate venture capital firms different from conventional venture capital firms?

SaaStr

A few like Salesforce Ventures and GV are an exception, but let me explain: Corporate VCs often do not write a “second check”. Again, this is less likely with Salesforce Ventures and GV, etc. The post How do corporate venture capital firms different from conventional venture capital firms? They aren’t as dependable. This doesn’t mean they are “worse”. It does mean be careful how you use them. This is issue #1.

What are the key differences between venture debt and venture capital?

SaaStr

Venture capital / equity is expensive. But … with few exceptions, it’s 100% risk capital. Venture debt is relatively cheap. But whatever the terms, venture debt is much, much cheaper than equity / venture capital. But the thing is, venture debt has to also be much lower risk. Venture debt generally has conditions, and covenants, and terms that restrict how much you can spend — which equity doesn’t.

How do venture capital firms determine when and how to help stalled or stuck portfolio companies?

SaaStr

Q: How do venture capital firms determine when and how to help stalled or stuck portfolio companies? The post How do venture capital firms determine when and how to help stalled or stuck portfolio companies? It is a super interesting topic more should be written about. Most VC firms do plan for some tough times. They expect a rough quarter every 4–5 or so.

Why has Skype co-founder Niklas Zennstrom’s venture capital firm raised over 800 million to back European startups?

SaaStr

Q: Why has Skype co-founder Niklas Zennstrom’s venture capital firm raised over 800 million to back European startups? The post Why has Skype co-founder Niklas Zennstrom’s venture capital firm raised over 800 million to back European startups?

How Revenue-Based Financing and Venture Capital Funding Work Together

OPEXEngine

As Chief Credit Officer at Lighter Capital, I work behind the scenes grappling with the data that informs all of our decision-making regarding financing deals, from revenue-based financing (RBF) to term loans and lines of credit. Similar to a venture capitalist (VC), I try to understand where startups are in their life cycles — and where they can expect to go. Is RBF simply an alternative to venture capital funding? Lower-cost capital post-VC funding.

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.

Highlights from the 1Q19 Fenwick & West Venture Capital Survey

Kellblog

Every so often I post highlights from the quarterly Fenwick & West Venture Capital Survey , as much to share knowledge about the existence of the survey [1] as to share its current-quarter data. This is useful information to see what’s happening in the market, and I suppose semi-useful information in perhaps timing your venture rounds (subject to Kellblog Rules 1 and 2 of Financing [2]).

How hard is it to raise venture capital? If you have solid traction and a great team, are your chances significantly higher than 0.05% and will you find at least one investor if you keep hustling?

SaaStr

Q: How hard is it to raise venture capital? The overall odds of raising venture capital may be 0.05%. According to YC, “Each batch of YC companies raises about $250M of seed capital in the weeks following Demo Day.” Find a way to go 24+ months without VC capital.

We’re Overthinking Seed Round Signaling Effects

For Entrepreneurs with David Skok

Conventional wisdom, and advice, abounds: entrepreneurs should never include a venture firm in their seed round because it’ll scare other VCs off from pursuing the A. Getting Funded Entrepreneur Funding Raising capital seed deals Venture capitalThere is much hand wringing in the startup ecosystem about various forms of signaling between the seed and A rounds.

The Decentralization of Venture Capital

Tomasz Tunguz

To thrive, venture capital firms must perform three things well: raise capital from limited partners, source companies to invest in, and pick the best opportunities. In the last decade, venture firms have experimented with decentralized sourcing. Decision-making in venture firm is a dark art. Non-consensus means investing in areas competitors aren’t yet so the valuations are more attractive because there is less capital supply.

How do venture capital general partners resolve investment choice disagreements? If a number of partners think a certain startup is a good portfolio candidate and others don’t agree, what happens?

SaaStr

The post How do venture capital general partners resolve investment choice disagreements? It varies. Generally: The most senior partners can get any deal done they want. Period. They make seek consensus, and may defer when they don’t get it. But in the end, they can do what they want. And the more junior ones need more buy-in from the rest. The more junior the partner, or investing professional, the more she/he needs others to buy-in.

The Midas List Live (Video + Transcript)

SaaStr

A discussion about venture capital and the effects Covid-19 has had on in the industry. Nicole Quinn, general partner of Lightspeed Venture Partners and Ann Miura-Ko, co-founding partner of Floodgate and I’ll hand it over to you.

400+ VCs Are Coming to New New in Venture!

SaaStr

SaaStr’s New New in Venture Virtual Summit is coming up May 27th and here’s why you should join. Sapient Capital. Hyde Park Ventures. Salesforce Ventures. Bonfire Ventures. Samsung Ventures. NextGen Venture Partners. Frontline Ventures.

Raising Funding During COVID with Homebrew Partner Satya Patel (Video + Transcript)

SaaStr

I’m here to talk to you today about raising capital in today’s environment, particularly at the seed stage, so we’ll touch on the Series A stage as well. That’s a good place to start, to understand the actual landscape in which you are trying to raise capital.

How to calculate your total addressable market and make a great TAM slide for investors

For Entrepreneurs with David Skok

Getting Funded Startup Help Business Model Funding SaaS TAM TAM slide Total Addressable Market Venture capitalI’ve seen hundreds of startup pitch decks in my time at Matrix, and have found total addressable market (TAM) slides to be among the most frequently mis-executed. I get the sense they are often included as a formality in an attempt to get VCs to check a mental box and continue on hearing about other.

The Three Un’s of Successful Founders

Kellblog

Career Development CEO Culture Silicon Valley Startups Venture Capital unapologetic uncompromising unreasonableI’ve worked with scores of founders and companies over the years and I’ve come to make bright-line distinction between founders and managers.

My Two Appearances on the SaaShimi Podcast: Comprehensive SaaS Metrics Overview and Differences between PE and VC

Kellblog

I’ve also embedded it here: Dave Kellogg on SaaShimi Discussing Differences between Private Equity and Venture Capital. IPO Metrics Private Equity SaaS Startups Venture Capital

Congratulations to Nuxeo on its Acquisition by Hyland

Kellblog

Cloud ECM Enterprise Software SaaS Startups Venture CapitalIt feels like the just the other day when I met a passionate French entrepreneur in the bar on the 15th floor of the Hilton Times Square to discuss Nuxeo.

Ten Pearls Of Enterprise Software Startup Wisdom From My Friend Mark Tice

Kellblog

Go To Market Marketing Sales Startups Strategy Uncategorized Venture CapitalI was talking with my old friend, Mark Tice , the other day and he referred to a startup mistake as, “on his top ten list.” ” Ever the blogger, I replied, “what are the other nine?”

Podcast: How Venture Capital Will Change Your Business and How it Stacks Up Against Other Kinds of Funding, an Interview with Rand Fishkin of Moz

Divestopedia

Whether buying, selling or growing, you are going to deal with capital. Rand Fishkin explains what venture capital did for him, how it falls short in certain situations and what other types of capitalization you can use to pursue your business dreams

How to Get Press Coverage

The Angel VC

Tell them how much you’ve raised If you’re announcing a funding round, journalists will ask you how much capital you’ve raised. pr public relations startups venture capitalStartup PR for Dummies Public Relations (PR) is not a high priority for most early-stage startups.

Venture Capital for the Rest of Us

Mucker Capital

We took everything we learned in the preceding decades spent inside and outside the Valley and applied it to venture in L.A. If venture capital is only about finding brands and checking boxes, Silicon Valley has to be the easiest place in the world to be a VC. In the world of seed capital, the entrepreneur and their working relationship with VCs is everything. 2015: Getting Past the Catch-22 of Venture Capital.

A Tip of the Hat to Grid On Their Launch Day

Kellblog

Spreadsheets Startups Venture Capital GridIt’s not every day you hear about a startup in Iceland, founded by a guy whose last company was a data marketplace that he sold to Qlik. And it’s a small world when a friend and fellow board member had independently discovered the same tool and built a SAFE calculator and an inverted pipeline model using it.

Why You Should Consider Eliminating the Title “Implementation Consultant” from Your Startup

Kellblog

HR Organizational Behavior Professional Services SaaS Startups Uncategorized Venture Capital Implementation Consultant organization design PSOI’ve worked with several startups that fell into the following pattern: Selling a SaaS application at a healthy price (e.g.,

Is Seed the new Series A? (Video + Transcript)

SaaStr

Since 2010 we’ve seen more startups, funds, and capital than ever before, but with this drastic increase, investors are seeing unexpected new trends reshaping the future of the industry. Join this panel of investors from Connect Ventures, Blossom Capital, Dawn Capital, The Family, and Indico Partners as they provide an overview of the current investment landscape, and discuss whether the seed stage is emerging as the new Series A. Pietro Bezza, Connect Ventures.

Why your LTV might be higher (or lower) than you think

Point Nine Land

saas finance marketing venture-capital startup

Churn 82

The Coming Wave of Venture Capital and What It Means for Your Startup

Tomasz Tunguz

The second quarter of 2014 is the sixteenth largest by capital deployed sinced 1995, making it a top quartile quarter, but to break into the top five, that figure would need to triple. Which startup sectors should expect to benefit from this surfeit of capital? Each quarter, the National Venture Capital Association and Thomson Reuters gather data on the VC industry. Through the first six months of 2014, VCs have raised about as much as all of 2013.