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Praying to the God of Valuation

Both Sides of the Table

2001–2007: THE BUILDING YEARS The dot com bubble had burst. SEEING THINGS FROM THE VC SIDE OF THE TABLE While I was a VC in 2007 & 2008 those were dead years because the market again evaporated due the the Global Financial Crisis (GFC). Starting in 2009 I began writing checks consistently, year-in and year-out. billion fund.

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Does the Size of a VC Fund Matter?

Both Sides of the Table

I’m writing this series because if you better understand how VC firms work you can better target which firms make sense for you to speak with. I’m writing this post to explain to entrepreneurs what you should be thinking about in terms of the VC’s you approach and the size and stage of their funds.

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What I’ve Learned About Venture Funding

Both Sides of the Table

VC funding. We love capital efficiency until we love land grabs until we abhor over funding until we get huge payouts and ring the bell for more funding until we attract every non-VC on the planet to invest in startups until it crashes and we start the cycle all over again none the wiser. The industry did that in 2007.

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How I Got the Monkey Off My Back – Today Was a Good Day

Both Sides of the Table

I become a venture capitalist in September 2007 – exactly 6.5 As a result I didn’t write my first venture capital check until March 2009 – exactly 5 years ago. That company was Invoca, which just announced a $20 million fund raise led by Accel. I am closing 3 new fundings in April (2 new, 1 follow-on).

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What is the Definition of a Seed Round or an A Round?

Both Sides of the Table

My view: “Spending any time or energy trying to game the ‘definition’ of your round of fund raising is a total waste. There weren’t a lot of seed funds in 2007 so this was often done by angels, funding consortia or sometimes early-stage funds that existed then (First Round Capital, True Ventures, SoftTech VC, etc.).

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The Changing Structure of the VC Industry

Both Sides of the Table

The rise of “micro VCs” or seed-stage funds. The rise of alternative sources of capital (crowd funding and the like). Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. ” Stated simply – if you seed funded Uber at $4.5m Why is this?

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What Did I Learn From the First VC Check I Ever Wrote?

Both Sides of the Table

I became a VC 12 years ago in 2007 when the pace of deals was much slower. The first check I wrote was just over 10 years ago into a company called Invoca who just announced a new $56 million in funding led by Scott Hilleboe at HIG Growth Partners. We not only have our Series A funds that can write $500k?—?$15