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. Venture Capital is a people business.

Changes in the Venture Capital Funding Environment

Both Sides of the Table

The funding environment for tech startups is an ever shifting ground as we go through predictable shifts that go hand-in-hand with the slowing of the overall market. In other words, it isn’t that VCs suddenly got smart, it’s that the costs of starting a company went down dramatically.

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Core Innovation Capital Backs Mosaic's $220M Funding

socalTECH

Los Angeles-based fintech investor Core Innovation Capital is one of the backers in a big, $220M equity funding for solar power financing provider Mosaic. Mosaic, which works with both owners and installers to help provide the upfront capital for residential solar installs, said the $220M equity round was led by Warburg Pincus, and also included Core Innovation Capital and Obvious Ventures. The company is based in Oakland.

Mucker Capital closes on $45 million for an early-stage LA-based fund

TechCrunch LA

Santa Monica-based Mucker Capital has raised $45 million for its third fund, Mucker III. In addition, it will invest in seed and pre-seed stage companies through MuckerLab, a new accelerator program.

March Capital Backs VeloCloud In Series C Funding

socalTECH

Santa Monica-based venture capital investor March Capital Partners is the lead investor in a developer of cloud networking technology, VeloCloud Networks , as part of a new $27M funding round for that company. VeloCloud, which is based in Silicon Valley, said the new Series C funding was led by March Capital Partners, and also included Cisco Investments, New Enterprise Associates, and Venrock.

TVC Capital Backs Celigo

socalTECH

San Diego-based software growth equity investor TVC Capital has backed Celigo , a developer of software to integrate cloud-based applications. Celigo said this morning that it has raised $8M in an expansion capital round, its first institutional funding since it was founded in 2006. A part of the funding, TVC Capital's Steven J. Hammerslag joins the company's board of directors. celigo capital venture software growth equity

Embark Ventures Raising $50M Venture Capital Fund

socalTECH

Los Angeles-based Embark Ventures , a new venture capital fund led by Yipeng Zhao and venture capitalist Peter Lee, is raising a $50M venture capital fund, according to a recent SEC filing by the firm. The filing says the firm has so far raised $45M out of a $50M target in the fund, from six limited partners. Embark's website says it is focused on pre-seed and seed stage investments in Internet and software companies.

Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? Him: But when I raised my first round we didn’t know how to price the company. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. It’s simply what a market is willing to pay based on a future belief that your company will grow and non-linear rates and be worth much more in the future. I often will fund 80+% of a round and move quickly.

TVC Capital Raises $115M Software Fund

socalTECH

San Diego-based TVC Capital , the software-focused, growth equity investment firm founded by Jeb Spencer and Steve Hamerslag has raised a big, $115M software fund, the company said Wednesday. The fund said that TVC Capital III was oversubscribed, and closed in only 90 days. TVC said that the investors included fund of funds managers and a university endowment.

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Razer Plans Venture Capital Fund

socalTECH

Irvine-based videogame accessory and hardware maker Razer is planning on launching a new, corporate venture capital fund, starting next year, according to a report. Razer, which is led by Min-Liang Tan, reportedly plans to invest in companies, which it plans to incubate and help with its international business. razer venture capital videogame accessory hardware corporate investment

The Honest Company Gets $70M

socalTECH

Los Angeles-based The Honest Company , the online, family products retailer led by serial entrepreneur Brian Lee, and which was co-founded by Jessica Alba, has raised $70M in a funding round, according to the company Tuesday.

Correlation Ventures Raises $200M In New Investment Fund

socalTECH

Correlation Ventures , a venture capital investment firm with offices in San Diego, Palo Alto, and New York City, said this week that it has raised $200M in a new investment fund. The company said the second fund was oversubscribed, and brings its total assets under management to $366M. Limited partners in the new fund included endowments, pensions, funds of funds and family offices, according to the firm.

Is Venture Capital A Path To Riches?

InfoChachkie

There’s no question that many VCs (especially those who manage large funds), are underworked and overpaid. I was very appreciative of this windfall, as the company was essentially a lifestyle business that my co-founder and I never expected to sell.

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. Looking ahead at the next decade I am excited by what I believe will be viewed as one of the best and most rational investment periods for venture capital due to seven discrete factors: 1.

10 Signs Your Company Isn’t Ready to Raise Startup Capital

Tech Zulu Event

I don’t think I need to make the case for raising capital for your startup. For many companies, bootstrapping will only get your company so far…and then, in order to grow bigger, faster, it’s likely that you’ll need some additional capital from an outside investor.

What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

There is much discussion online and also in small, private groups, about why the price of technology companies – public and private – are falling. In 2015 in the US there were $77 billion written into startup tech companies. The Case for Reduced Funding Levels.

Why 2017 Should be a Great Year to Raise Venture Capital

Both Sides of the Table

Recently Upfront Ventures published its outlook for the technology startup world and venture capital overall titled it “ WTF Happened to Winter ?” venture-capital startup

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.

What I Learned In 2015: Jeb Spencer, TVC Capital

socalTECH

Today, we have the thoughts of Jeb Spencer of TVC Capital (www.tvccapital.com), a software focused growth equity fund which just raised a new fund, and has had some great success in the market. TVC Capital has also been a big supporter of socaltech over the years.

ROX Medical Gets $40M Funding

socalTECH

San Clemente-based ROX Medical , a startup developing medical devices to treat hypertension, has raised $40M in a Series E funding, the company said this morning. The funding was led by Novartis Venture Fund and Apple Tree Partners and also included prior investors Versant Ventures and Domain Associates. David McIntyre and Sami Hamade of Apple Tree Partners and Steven Weinstein of Novartis Venture Fund all join the company's Board of Directors with the funding.

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

Both Sides of the Table

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. LPs Still Believe Strongly in Venture Capital as a Diverse Source of Returns.

Core Innovation Capital Raises $71M In New Fund

socalTECH

Los Angeles-based Core Innovation Capital , the fintech investment firm led by Arjan Schutte and Kathleen Utecht, has just raised $71.5M in a new fund, Core Innovation Capital II, L.P. according to a regulatory filing by the company on Thursday. The fund's target size was $75M, and the filing indicates another $3.47M still remains to be raised in the fund. core innovation capital fintech financial investment venture arjun schutte kathleen utecht

Practice Entrepreneurship With A Purpose – Before You Start A Company

InfoChachkie

If you are networking to assist a startup you are advising, you can substitute the company’s pitch for your personal pitch. Don’t worry, you can apologize after the fact, when you point to the positive impact your initiative had on your company.

MK Capital Funds ReachForce

socalTECH

Los Angeles- and Chicago-based venture capital firm MK Capital is the lead investor in Texas-based ReachForce , a provider of data quality software for marketers. According to ReachForce, MK Capital led a $4.6M investment round in the company.

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.” It had an influence on the people who fund our industry in a negative way as many asset managers who fund our industry read this flawed report. Having worked through the data with Glenn I am even more optimistic about venture capital than I was even a year ago.

Getting Your Head in the Game for Fund Raising

Both Sides of the Table

You have cash in the bank, a monthly burn rate and a “cash out” date that few in the company truly comprehend. Fund raising is hard for everybody. Fund raising is like a funnel where you need a bunch of potential leads in the top end and only a few will reach the bottom.

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Three Factors Which Intoxicate Venture Capitalists - Why Your Startup Will (Probably) Not Raise Venture Capital Funding

InfoChachkie

The Three Enthralling Factors Of Venture Funding. Naval Ravikant, Co-Founder of AngelList and Venture Hacks, details a variety of factors that influence your chances of raising venture funding in this informative interview. LOCATION: I Wish They All Could Be California Companies.

CTO Equity and Compensation at Venture Backed Companies

SoCal CTO

Todd Gitlin of Safire Partners was nice enough to compile some data on CTO Equity and Compensation at Venture Backed Companies for the LA CTO Forum and present last year. I'm a little surprised that CTO Founders with growth capital funding only have 15% of their companies.

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Kareo Gets $15M Debt Funding

socalTECH

Irvine-based Kareo , which provides cloud-based, medical office software, said Friday that it has raised $15M in a mezzanine debt funding round. The funding came from Escalate Capital Partners. The company said the new funding brings its total raised to $47M in 2014. Terms of the new funding were not announced. kareo debt funding medical office software venture capital finance

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

But what IS the right amount of burn for a company? 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 Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left. I often see companies burning $100,000 per month (net) looking to raise $6-8 million. Availability of Capital.

What I Learned In 2015: Lawrence Ng, OnRamp Fund

socalTECH

Today's thoughts are from Lawrence Ng , who founded Oversee.net, and just launched the OnRamp Fund (onrampfund.com). Lawrence Ng: The big news for us was the launch of OnRamp Fund. oversee accelerator incubator reflections capital venture fund onramp lawrence

DFJ, Pasadena Angels lead $1.4M funding in Edufii

Ask the Angels

million Series A funding in Edufii Inc., Other participants in the funding round include the Gideon Hixon Fund, Tech Coast Angels, SLO Seed Ventures and coaching industry private investors including Tiger Woods’ first coach Rudy Duran. Blog Company Creation/Operation Fundraising General News Angel Capital Angel Investing Company Sale Exit Strategies Pasadena Angels Startups Valuation VC DFJ Frontier and Pasadena Angels have led a $1.4

The Silent Killer – The Company Your Community Never Created

Both Sides of the Table

I was at a dinner recently in Chicago and the table discussion was about building great companies outside of Silicon Valley. It’s not the great companies you build, it’s the silent killer of those that should have been build locally and weren’t. For example, Lookout is a mobile security company that was founded by three talented graduates of USC. But I know with local funding and local support that’s certainly less likely. Local capital matters.