Both Sides of the Table
SEPTEMBER 28, 2014
Gross Burn vs. Net Burn. Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. (it Net burn is the amount of money you are losing per month. I often see companies burning $100,000 per month (net) looking to raise $6-8 million.
Both Sides of the Table
JUNE 27, 2021
You need shots on goal as not every one will go in the back of the net. If you’re a seed fund that takes 5–10% ownership and doesn’t take board seats you might have 50, 100 or even 200 investments. We know this going into a new fund. That’s return, not exit price of the company.
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Both Sides of the Table
JULY 16, 2010
LP’s who invest in funds are typically university endowments, public & private pension funds, insurance companies, large corporations and very high net worth individuals called “family offices.&# To give you an indication of how bad, for example, university endowments are suffering check out this chart.
Both Sides of the Table
MARCH 1, 2016
In fact, if you add the capital flows of the past ten years, there have been just shy of $50 billion in net cash outlays. Some LPs have privately speculated that later-stage VCs may have a field day in the next 18 months, buying up large positions in firms with strong revenue at attractive prices given the recent squeeze on funding.
InfoChachkie
FEBRUARY 29, 2016
Too bad, as the initial funding round has increased over 4,000 times in value, making a $250,000 investment worth more than $1,100,000,000. Two hundred and fifty thousand would have netted my firm more than one billion dollars. Nope, that’s not a typo. However, passing on a killer investment is not the worst error an investor can make.
Both Sides of the Table
FEBRUARY 27, 2011
Where I think Robert’s comments are slightly wrong is that AngelList is a net positive for VCs. Most VCs fund companies with a degree of traction. If I were a founder I would personally start with these kinds of seed funds. Relationships with VCs to get downstream funding. My view for VCs. Deep pockets.
InfoChachkie
NOVEMBER 23, 2015
For a high-volume seed fund that adds many portfolio companies every year (such as our friends at 500 Startups who invest in over 100 distinct companies annually), the cost of a bad affirmative decision (a false positive) is quite low, since it accounts for a relatively small portion of their total fund. com> 4/25/08.
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