venture capital

  • Understanding How Dilution Affects You At A Startup

    Understanding How Dilution Affects You At A Startup

    Everybody knows that when you raise money at a startup your ownership percentage of the company goes down. The goal is to have the value of the startup go up by enough that you own a smaller percentage of a much larger business and therefore your total personal value goes up. The simplest way to think about this is: If you own 20% of a $2 million company your stake is worth $400,000. If you… Read More

  • Tom Ball, Joe Kraus, James Slavet on Venture Capital

    VCs Weigh In On What It Takes To Be A Successful Investor

    Today at TechCrunch Disrupt, five VCs gathered to talk about the state of investing in Silicon Valley and what skills and qualities make a successful venture capitalist. James Slavet of Greylock, Joe Kraus of Google Ventures, Shervin Pishevar of Menlo Ventures, George Zachary of Charles River Ventures, and Rich Wong of Accel Partners each weighed in on how venture capitalists are trying to make a… Read More

  • Don’t Follow The Crowd

    Don’t Follow The Crowd

    Editor's note: Jules Maltz is a General Partner at Institutional Venture Partners (IVP), a late-stage venture capital firm based in Menlo Park. You can follow him on Twitter @julesmaltz. Whenever I’m about to make a new investment, I always think about the 2x2 matrix I learned from Andy Rachleff, a former partner at Benchmark Capital. The idea is that if you make a new venture investment… Read More

  • The Series A Squeeze

    The Series A Squeeze

    Series A financings are on the decline. They peaked at 283 in 2007 and are on pace to barely crack 100[1] this year (all data is from CrunchBase through the end of June—it is imperfect but the best I’ve got, see chart).  They’ve also declined in relative terms, representing nearly 40% of all equity financings in 2006, and less than 20% year to date. I believe there are two main reasons for… Read More

  • More Evidence There’s No Bubble: VC Investments Were Flat in Q2

    More Evidence There’s No Bubble: VC Investments Were Flat in Q2

    Dow Jones VentureSource released its second quarter numbers for the venture industry today, and there's a reason they're not dominating the headlines. They're pretty boring: Overall investors put $8 billion into 776 deals in the US in the second quarter, a decrease of 5% in terms of invested cash and 2% in terms of deals. The median amount raised per deal was $5.2 million, up from $4.6 million a… Read More

  • Raising The Most Money Doesn't Mean Your Company Will Become The Most Valuable

    Raising The Most Money Doesn't Mean Your Company Will Become The Most Valuable

    One of my favorite recent blog posts is Seth Godin's “Getting funded is not the same as succeeding.”   Whether or not we’re in a bubble, it’s a sign of the times that this post has to be written in the first place.   As Josh Elman tweets, we’ve gone from RIP Good Times to funding a grilled cheese company in less than three years (Sequoia was involved in both interestingly).  Instead… Read More

  • Study: VCs Still Addicted To IPOs

    Study: VCs Still Addicted To IPOs

    It seems that Venture investors are none-too-happy with current IPO activity. According to a study sponsored by Deloitte and the National Venture Capital Association released yesterday, over 80 percent of venture capitalists from around the globe believe "that current IPO activity levels in their home countries are too low". Low enough, in fact, that it has investors worrying over whether or not… Read More

  • “I Want to Meet a Partner!"

    “I Want to Meet a Partner!"

    Over the years I’ve heard many legitimate gripes from entrepreneurs about the way venture capital firms treat them while fundraising. I must confess an imperfect record of courtesy myself, though I do try to be respectful, and to incorporate feedback. For example, I once resolved never to keep entrepreneurs waiting long for me in our lobby, and I think I live up to that. But I often hear one… Read More

  • The Top 10 VC Firms, According To InvestorRank

    The Top 10 VC Firms, According To InvestorRank

    Any seasoned investor knows that past performance is not indicative of future returns. That is as true with public stocks as it is with venture capital firms. But if someone were to ask you to rank the top VC firms today based on their probability of success, how would you do it? Remember, looking at past returns won't help you. Chris Farmer, a VC at General Catalyst Partners, has come up with a… Read More

  • Cleantech Investor Raj Alturu Moves From DFJ To Silver Lake Kraftwerk

    Cleantech Investor Raj Alturu Moves From DFJ To Silver Lake Kraftwerk

    On Thursday, Raj Atluru announced that he was stepping down as a managing director with Draper Fisher Jurvetson, where he served as a key cleantech investor since 2001. He will join a private equity group that invests in later-stage clean energy companies, Silver Lake Kraftwerk, which was formed earlier in 2011 by Silver Lake Partners and Soros Fund Management, led by Adam Grosser. Atluru took… Read More