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What Does the Post Crash VC Market Look Like?

Both Sides of the Table

Across more than 10 years we have kept the size of our Seed investments between $2–3.5 million, our Seed Funds mostly between $200–300 million and have delivered median ownerships of ~20% from the first check we write into a startup. By 2021 we had to write a $3.5m How Does the Industry Really Work?

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Interview with Fariborz Maseeh, Maseeh Entrepreneurship Prize Competition

socalTECH

Last week, the University of Southern California 's Viterbi School of Engineering announced that it had established a new, business plan competition, the Maseeh Entrepreneurship Prize Competition ([link] specifically aimed at students in the engineering school. Why a business plan competition, and why in engineering school?

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The Changing Venture Landscape

Both Sides of the Table

I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. Because to invest at a $60–80 million pre-money valuation (or even $40–50 million) before there is enough evidence of success requires a larger fund.

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What Do LPs Think of the Venture Capital Markets for 2016?

Both Sides of the Table

This strangely may come even more quickly in the more successful funds, because any funds (ours included) who still hold some public stock from a recent IPO will likely be seeing write-downs sooner due to the immediacy and transparency of public stocks being repriced. The Biggest Area of Concern is Late Stage Investments.

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The Changing Structure of the VC Industry

Both Sides of the Table

The VC market has right-sized (returned back to mid 90′s levels & less competition). Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. Just 3 years ago there was talk of institutional investors “not being able to write small enough checks.”

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This Week in VC with Rick Smith of Crosscut Ventures

Both Sides of the Table

Heck, stick around and watch me discuss the seed funding debate that is going on right now and what is happening in the VC industry overall. I give a sneak peek at a blog post I’m writing on the topic next week. I’m going to make this a regular part of the show since it was really fun.

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The Authoritative Guide to Prorata Rights

Both Sides of the Table

These tensions seep out in some angels or seed funds publicly or semi-privately deriding later-stage VCs for their “bad” behavior. Or your A-round investor who wrote a $5 million for 25% of your company may not be well positioned to write another $5 million (25%) of a $20 million round.

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