VC industry dynamics

Get flash to fully experience Pearltrees

Lots of discussion these days about the changes in the VC industry. Here’s my take:

What’s Really Going on in the VC Industry? What Does it Mean for Startups? | Both Sides of the Table

http://www.bothsidesofthetable.com/2010/07/16/whats-really-going-on-in-the-vc-industry-whats-it-mean-for-startups/

Over the past few weeks we’ve seen extremely high activity in new venture investments . Starting in September, we witnessed the return of multiple term sheet deals, short fuse situations, and a renewed urgency to most fund-raisings. I heard last week of a hot late stage deal attracting ten (yes 10) term sheets.

http://www.trueventures.com/2009/12/02/venture-is-back-baby/

Is VC back?

Not that it’s a surprise to anyone – this has been predicted for a while – but it is a milestone for an industry that has long boasted of outstanding returns that make a lack of liquidity worthwhile.

Despite Short-Term Improvement, VC 10-Year Index Goes Negative -

http://redeye.firstround.com/2010/05/the-money-chart.html

I've previously written several blog posts about venture capital fund size -- and how it impacts fund performance.

Size Matters (at least for venture funds)

http://www.avc.com/a_vc/2009/04/the-venture-capital-math-problem.html

VC Maths problem

Yesterday Albert and I visited one of the investors in our fund. The good news is they are happy with the job we are doing.

The decline of VC

I wrote a post a week or so ago thinking outloud about what a good "venture return' is . Yesterday, one of our investors, Lindel Eakman of UTIMCO, stopped by this blog and left a very interesting comment on that post . Lindel pointed out that UTIMCO's portfolio return on all VC funds over the past 10 years was in the range of 9pcnt and that he thought that wasn't very good.

Thoughts On The Asset Class

Back to the roots?

I just came across a great report by Industry Little Hawk entitled the Venture Capital Rebound (pdf).

http://redeye.firstround.com/2009/10/vc-back-to-the-future.html

Great industry

Downsize the VC industry?

LT reports

VC Diet Is Working

The 2009 data on venture capital investments is out now.

http://www.avc.com/a_vc/2010/01/the-venture-diet-is-working.html

http://www.telegraph.co.uk/finance/yourbusiness/7073081/Britain-faces-venture-capital-success-gap-not-equity-gap.html

Britain faces venture capital 'success gap, not equity gap' - Te

He said that individual venture firms had made considerable profits on backing young companies. But the industry as a whole had "not made much money at all in the last 10 years".

Please take a moment and make a financial contribution to TheFunded. If we have helped you, help us with resources to further grow the both the site and our entrepreneur training program, The Founder Institute.

VC's Cutting Their Fees (Wsj)

http://www.thefunded.com/funds/item/6323

VCs take a paycut

The fundraising market is downright cutthroat for VCs. According to numbers from the WSJ, the percentage of VC firms actively seeking capital that have successfully closed new funds has fallen to 30.8% so far this year, down from 68.4% in 2008 and 81.6% in 2007. A nose-dive in the value of endowments and pensions funds coupled with a move to more conservative investment approaches at these LPs means the money going to the VC industry this year could be cut in half.