Venture Capital Unlocked (Stanford) / Venture Capital 2.0

This article aims to help VCs figure out how to size a venture capital fund, how many companies to include in your portfolio, and when and how to do follow-on investments. Most VCs aim to make a 3X (net) return on initial fund capital, at a ~20% net IRR. Note however, likely less than 10% of most VC funds achieve that goal.

At the Notation annual LP meeting this past fall, we gave a short talk on how we think about pre-seed investing & risk, and why we think there's a particularly interesting risk versus reward tradeoff at this stage.

1. Venture capital firms raise capital to finance new companies, take equity stakes and board positions, add value through participation, and seek higher returns through liquidity events like IPOs or acquisitions. 2. In 2006, $25.8 billion was invested in the US through 2,454 deals, averaging $10.5 million per deal. Information technology received the majority of investments. 3. Venture capital has significantly grown as an asset class since 1980 and has expanded internationally to places like India and China.

A short introduction to Venture Capital Term Sheets, and in particular the concept of liquidation preferences. Leo Dirac's talk from Ignite Seattle 4. For more detail, see http://embracingchaos.com/business

This document summarizes the Global Frontier Technology Fund, which invests in early-stage technology companies around the world. The fund highlights that 85% of future GDP growth will occur outside the US and that it has a network of over 300,000 founders building companies in 49 countries. It invests in sectors like AI, blockchain, IoT, and financial technology. The fund also has partnerships to help portfolio companies scale globally.

- The document summarizes Notation's annual meeting, reviewing their 2019 performance and 2020 strategy. It provides updates on their two funds, key investments, and team. - Notation Fund I is mostly invested with several potential high-value companies. Fund II also shows promising signs despite being earlier-stage. - Notation will focus on technical founding teams in NYC and other areas like proptech, healthcare, and education. They may increase check sizes due to rising valuations. - Goals for 2020 include improving deal flow strategies and scaling their network to find more pre-seed opportunities. Pro-rata remains a challenge that may require more incubation.

My goal is to provide early-stage entrepreneurs with accessible & “no bullshit” insights to understand what VCs do, how they think, what they want...

The document provides an overview of how venture capital funds work, including: 1) Venture capital funds raise money from limited partners like pension funds and endowments and invest in companies. 2) Funds are organized as limited partnerships with general partners who manage the investments and seek high returns. 3) General partners are incentivized to find companies that can generate large returns in order to receive carried interest from highly profitable deals.

This document provides an overview of startup finance and the investment process. It discusses important reflections founders should have before starting a business, including their motivations and risk tolerance. Financing options are explored, including self-financing, debt, angels, venture capital, and public markets. The document outlines how to attract investors by building context and momentum. The investment process is summarized, including sharing relevant information with investors and understanding common deal structures like preferred shares, liquidation preferences, and reverse vesting. Key considerations for founders in choosing investors focus on finding the right partner at a fair valuation.

Venture capital (VC) is a form of private equity and a high-risk, high-return investment. VCs typically invest in startups that cannot raise traditional financing. They expect to lose their entire investment in 1/3 of companies, break even in 1/3, and generate returns from 1/3. VCs raise funds in cycles and have time-bound commitment and investment periods. They earn management fees and carried interest. Associates source deals and manage investments while partners make decisions. VCs prefer different stages and seek influence, liquidation preferences, and exist their investments through dilution or acquisition. There are also angel investors, accelerators, incubators, and corporate VCs that startups may encounter.

The document describes Greenery Ventures, a $75 million sustainability venture fund. The fund aims to support pioneers of the sustainability era by investing in companies focused on carbon awareness, water usage, and waste reduction. Greenery Ventures will make 24 investments across agriculture tech, supply chain, and mobility sectors, primarily in North America and Europe. The fund differentiates itself through proprietary research networks that provide early insights into portfolio companies.

Presentation by John Hartnett, Irish Technology Capital, about the new venture Fund that he is raising in Ireland and Silicon Valley, aimed at the Irish and European hitech startups marketplace. Stanford Engineering, January 4 2010. Program Director and Course Instructor Dr. Burton Lee. Homepage: http://me421.stanford.edu

A brief overview of venture capital secondary, by Practical Venture Capital (Sept 2020, Dave McClure)

This document provides an overview of startup valuation and fundraising strategies. It discusses financial projections, exit strategies, and valuation methods. Key points include: - Financial projections should include revenue models, customer projections, costs, and cash flow budgets to support fundraising goals. - An exit strategy outlines potential acquisitions, IPOs, or remaining independent to help investors evaluate return on investment. - Comparable company analyses use multiples like revenue or EBITDA to estimate startup valuation based on exited companies. The document provides templates and considerations for building financial models, researching comparable acquisitions, and determining valuation to support fundraising efforts.

The document summarizes a venture capital fund that invests globally in technology companies. It has offices in major tech hubs around the world like Silicon Valley, Shanghai, Mexico City, and Dubai. The fund has invested in over 55 companies so far with a total valuation of $600 million generated from 8 exits. It provides services to support portfolio companies, including business consulting, sales and marketing support, and access to mentors. The fund aims to generate returns through investing in cutting-edge technology startups focused on growth.

Slides of guest lecture by Dr. Clint Korver, Partner, Ulu Ventures, at Stanford University's class Professional Decision Analysis (MS&E 352) on Feb 27, 2018

Topics Discussed: - What is Venture Capital - Overview of VC Funds  - VC Investment Process - VC Investing Strategies  - Other Investors  - VC Fundraising Materials - Resources

Distribution of Wealth in Islam By Mufti Muhammad Shafi Usmani Note From Author: In the present study, we propose to state as clearly as possible the point of view of Islam in this matter, such as we have been able to deduce from the Holy Qur'an, the Sunnah, and the writings of the "Thinkers" (to use a current idiom) in the Islamic tradition. The time and space at our disposal being short, it would not be possible to discuss the subject in detail so as to cover all aspects. We shall, however, try to set down the essential and fundamental points in a concise but comprehensive manner.

Islam provides guidance for all aspects of life, including economic prosperity. It aims to ensure equal participation and fair distribution of wealth through prohibiting interest and promoting alternative means of circulation like zakat. By eliminating interest and ensuring wealth flows between rich and poor, unemployment can be reduced as production and purchasing power increase through constant circulation. Countries like Switzerland saw success by limiting interest rates. True prosperity comes from following Islam's complete code of life.

Frank Rimalovski's When & How to Raise Venture Capital workshop slides from the 2016 NYU Entrepreneurs Festival

This document discusses halal ways of earning wealth in Islam. It outlines several permissible sources of wealth, including various forms of trading like buying and selling, murabahah, salam, and ijarah. It also mentions inheritance and other means like worshipping Allah, seeking forgiveness, being grateful, and spending in the way of Allah. Wealth must be acquired honestly and responsibly in Islam and not distract from faith. Halal earnings are a form of worship that will be rewarded by Allah.

Computer network is a distributed system consisting of loosely coupled computers and other devices. Any two of these devices, which we will from now on refer to as network elements or transmitting elements, can communicate with each other through a communication medium. In order for these connected devices to be considered a communicating network, there must be a set of communicating rules or protocols each device in the network must follow to communicate wit another device in the network. The resulting combination consisting of hardware and software is a computer communication network or computer network in short. Figure 1.1 shows a computer network

This document discusses changes in building technology startups and venture capital investing. It notes that startups can now be built with less capital due to reduced costs and access to online platforms with billions of users. Venture capital has also changed, with the rise of micro funds, accelerators, and global markets. The document advocates a "lean" approach of making many small bets across different investment stages. It emphasizes the importance of startup ecosystems that provide mentoring, capital, customers and exits for enabling startup growth.

This document summarizes information about 500 Startups, a seed accelerator program. It notes that 500 Startups has 110 people from 20 countries speaking 25+ languages, and has invested $220 million across 1500 companies through various accelerator programs and funds. Over 500 companies were from accelerator programs, over 400 started outside the US, and over 400 had women co-founders. Details are provided about the various 500 Startups funds and their sizes. It is reported that they have 3 unicorns valued over $1 billion, 30+ centaurs valued over $100 million, and 300+ ponies valued over $10 million. Examples of notable companies are provided. Information is also given about their investor education program and the demographics of a

This document discusses changes in building technology startups and venture capital investing. It notes that startups can now be built with less capital due to reduced costs and access to online platforms. Venture capital has also changed, with more global markets, distribution platforms enabling growth hacking, and the rise of unicorns and micro VC funds. It emphasizes making many small bets across different investment stages to diversify risk and increase chances of high returns. Building strong startup ecosystems is also important and requires factors like mentorship, universities, capital, infrastructure, and exit opportunities.

This document provides information about 500 Startups, a venture capital firm. It has over 75 employees across 15 countries speaking over 20 languages. It has $190 million under management and has invested in over 1200 companies across multiple funds, including over 300 companies started outside the US and over 300 with women co-founders. The firm has three unicorns valued over $1 billion and over 25 companies valued over $100 million. It also runs accelerator and distribution programs to help companies with growth.

"Introduction to 500 Startups" presentation will provide you a comprehensive overview of various activities that we do to promote startup ecosystem globally, discover best early stage companies and help them grow.

This document outlines 10 common challenges for emerging market startup ecosystems and offers responses to each. It notes that 1) there are few investors and most offer poor terms, 2) there are few experienced entrepreneurs, and 3) there are few customers willing to pay. It suggests focusing on traction over features, looking for profitable customer acquisition channels. It also advocates for more exits, distributing equity widely, starting regionally before going global, and having more confidence as the ecosystem matures.

The document discusses changes in building technology startups and venture capital investing. It notes that startups now require less capital to build products and reach customers due to cloud infrastructure and online platforms. Venture capital has also changed with the rise of seed funds, accelerators, and global funding opportunities. The document advocates for a portfolio approach of making many small bets on startups, expecting most to fail but a few to have outsized returns. It outlines stages of investing from product validation to revenue growth. Finally, it discusses how startup ecosystems develop through factors like capital, talent, and successful exits that inspire future entrepreneurs.

The document discusses changes in building technology startups and venture capital investing. Specifically, it notes that startups now require less capital to build products and reach customers due to reduced costs and access to online platforms. It also discusses how venture capital investing has shifted towards making many small bets through micro-VC funds, incubators, and accelerators. Additionally, it outlines how startup ecosystems are developing globally through growing entrepreneurship worldwide.

1. There are challenges for emerging market startup ecosystems including a lack of experienced investors, entrepreneurs, customers, and viable exit opportunities. However, these ecosystems have grown significantly with increased internet access, smartphone adoption, and the ability for local startups to access global markets. 2. Accelerators and incubators play an important role in supporting emerging markets but many struggle due to lack of funding, expertise, and focus on short-term gains rather than long-term growth. For accelerators to succeed, they need sustainable models with corporate, academic or government partners. 3. Both founders and investors in emerging markets often lack confidence compared to Silicon Valley. However, the biggest startups started elsewhere and moved to Silicon Valley

Dave McClure gave a talk about reinventing venture capital through 500 Startups' model of making many small investments. He discussed how technology has lowered the costs of starting companies and how platforms provide access to large customer bases. 500 Startups makes over 100 investments per year and aims to have a portfolio size of over 100 companies to increase chances of finding unicorns. Their strategy is to make many small "bets" and double down on the most promising companies. McClure also proposed training 500 new VCs through programs with Stanford to expand access to startup funding.

The document discusses startup metrics and provides an overview of the AARRR framework for measuring key metrics. It introduces the AARRR acronym which stands for Acquisition, Activation, Retention, Referral, and Revenue. It emphasizes measuring metrics that are simple, actionable and help optimize the product, marketing and business model based on user behavior data.

Dave McClure, a founding partner at 500 Startups, gave a presentation on technology trends in 2017. He discussed how startups have become cheaper, faster, and better. He also talked about how VCs are making lots of small bets through many new, small funds. McClure highlighted several investment areas including fintech, AI, AR/VR, blockchain, and other new technologies. He emphasized 500 Startups' strategy of making many small investments to find the next big winners.

1) Emerging market startup ecosystems face challenges including a lack of investors, entrepreneurs, customers, and exits. However, these ecosystems are improving as more founders gain experience, customers increase with economic growth, and acquirers look outside major tech hubs for deals. 2) The document provides advice for emerging market startups and investors, such as focusing on customer acquisition and growth over features, aiming for regional success before global expansion, and distributing equity widely to create more angel investors. 3) It argues that most accelerators will struggle due to tough economics but can improve by specializing in industries, and getting corporate partners to boost funding and time horizons for supporting startups.

Dave McClure is a founding partner at 500 Startups, a global seed fund and startup accelerator. He discusses changes in building startups and venture capital investing. Specifically, he notes that startups now require less capital to build products and reach customers due to reduced costs and access to online platforms. Venture capital has also evolved, with the rise of micro funds, accelerators, and funding platforms. McClure advocates a "lean" portfolio approach of making many small bets on startups, expecting most to fail but a few to achieve large exits.

slides from my talk in Tokyo on "Building Startup Ecosystems + Investing in Tech Startups" (Feb 2015)

This document summarizes Dave McClure's presentation on building startup and investor ecosystems. It discusses what 500 Startups is and their approach of making lots of small investments. It outlines changes in how startups are built more leanly and how venture capital has adapted a portfolio approach of many small bets. It covers building startup ecosystems by providing capital, community, education and exits. Finally, it discusses questions around defining entrepreneurs and challenges and solutions for investing in new tech markets.

This document discusses building startup ecosystems. It notes that starting a tech startup now requires less capital due to reduced server and software costs. More customers can be reached through online platforms. Accelerators and angel investors provide capital, mentoring and networking opportunities. Changes in venture capital include micro funds and a focus on making many small bets. Successful startup ecosystems have factors like education, capital, universities, platforms and exits through acquisition or IPO. The document estimates that with 500 venture capital funds investing, the annual seed-stage startup market could be around $5 billion funding 10,000 startups per year globally.

500 Startups is a global seed fund and startup accelerator with over 1,500 companies and 3,000 founders in its portfolio. It has 125 people across 30 partners in 20 countries. Some of its notable exits include Credit Karma ($3.5B), Twilio ($1B+), Grab ($1B+), and Wildfire (acq. by Google for $350M). The presentation discusses how building startups and venture capital investing has changed, with startups now requiring less capital and having more distribution channels online. It outlines 500 Startups' "lean" portfolio approach of making many small bets across different stages. The final section discusses how 500 Startups aims to engineer startup ecosystems in emerging markets by providing capital

500 Startups is a global seed fund and startup accelerator that has invested in over 1500 companies across 50 countries since 2010. It provides capital, community, education, and resources to founders and investors through its accelerator program, seed fund investments, distribution platform, marketing support, events, and educational content. The presentation discusses changes in how startups are built and funded more efficiently using lean startup methodologies and online distribution platforms, as well as changes in venture capital investing towards a portfolio approach of making many small bets across different stages. It outlines 500 Startups' strategy of investing small amounts in many early stage companies and selectively doubling down on the top performers over time to achieve outsized returns from successful exits.

This document provides an overview of a talk given by Dave McClure on changes in venture capital and building startup ecosystems. The key points covered include: 1. An introduction to 500 Startups, a global seed fund and startup accelerator that has invested in over 700 companies across 40+ countries. 2. Changes that have occurred in technology and venture capital due to factors like reduced costs, increased online platforms, and the rise of accelerators and angel investing. 3. How 500 Startups employs a "Lean VC" approach of making many small bets through incremental investment stages focused on product validation, market validation, and revenue validation.

slides for my talk on building startup ecosystems, for the Global Entrepreneurship Summit (Stanford, June 2016)

500 Startups is a global venture capital firm and startup accelerator that has invested in over 1,500 companies across 50+ countries. The presentation provides an overview of 500 Startups, including its portfolio approach of making many small investments, changes in building startups and venture capital investing, and strategies for building startup ecosystems, particularly in emerging markets. Key points include diversifying investment risk across a large portfolio, focusing on early-stage companies, and addressing challenges like access to capital, acquirers, and liquidity events in developing startup communities.

This document summarizes Dave McClure's talk on changes in tech startups, venture capital, and building startup ecosystems. Some key points include: - Startups now require less capital, have faster development cycles, and can reach more customers through online platforms. - A "Lean VC" approach involves making many small bets across early-stage startups using incremental funding. - Critical factors for strong startup ecosystems include education, mentors, capital access, universities, and infrastructure to support companies from early ideas through growth. - McClure argues that 500 venture capital funds globally could support 10,000 seed-stage startups per year through this Lean VC approach of making many small bets.

This document summarizes Dave McClure's presentation on building startup ecosystems and investing strategies. The key points are: 1) McClure discusses 500 Startups' strategy of making many small "spray and pray" investments in early stage startups to increase the chances of finding a unicorn. 2) He outlines the typical stages and structures of startup investments from incubation to growth, focusing on validating products, markets, revenue, and growth at each stage. 3) McClure emphasizes the importance of building strong startup ecosystems through factors like capital, mentors, universities, and successful exits to attract more entrepreneurs and investors.

This document summarizes Dave McClure's talk on changes in venture capital and building startup ecosystems. Some of the key points discussed include: 1) The venture capital industry and tech startups have changed significantly since the dot-com era, requiring less capital and using online platforms to reach more customers. 2) A "Lean VC" approach of making many small bets on early-stage startups in seed rounds has replaced the traditional large funding rounds of the past. 3) Critical factors for building strong startup ecosystems include mentorship, universities, capital, infrastructure, and successful exits through IPOs or acquisitions.

This document summarizes Dave McClure's talk on changes in venture capital and building startup ecosystems. It discusses how technological changes and the rise of online platforms have made it cheaper and easier for startups to launch and reach customers globally. It also describes the evolution of a "lean" venture capital model of making many small bets across early-stage startups. Finally, it outlines critical factors for building strong startup ecosystems and the role of incubators, angel investors, and venture capital funds.