Yesterday CBInsights published an analysis of Andreessen Horowitz’s investments. From our perspective as ecommerce seed investors the industry split was the most interesting chart because ecommerce was on top.
The chart above is for all their seed investments since 2010 and is a firm vote for ecommerce, although it would be interesting to [...]
The guys at Andreessen Hororwitz are on a hell of a tear. The firm was founded in 2009 and they just announced the closing of their fourth fund at $1.5bn. On top of that they’ve invested in a large number of marquee companies that have had big exits, including this weeks hot story Occulus Rift, [...]
‘Carried interest’ is the name given to the profit share schemes that investors in venture capital funds, typically called ‘LPs’, use to incentivise the partners at at the funds in which they invest. The partners are typically called the ‘Manager’, as their job is to manage the fund by making investments and managing the [...]
BrightSun have just published research on the number of seed funds in Europe. As you can see from the graphs below the number of seed funds is growing very fast whilst the number of later stage funds is flat.
Chart 1: number of European funds investing in rounds of $1m and less (blue line) and number [...]
Yesterday I wrote about how building a startup is increasingly an exercise in disciplined application of process. Creativity and flair will always be important, but whereas that used to be most everything and charismatic sales driven entrepreneurs with huge personalities were common, these days implementation of processes like ‘lean’ and ‘customer development’ are increasingly [...]
I’ve just re-read the a 2012 report by the Kauffman Foundation about the contractual relationship between venture capital funds (often called GPs, short for General Partner) and their investors (often called LPs, short for Limited Partners). Kauffman is a major investor in venture capital and they were (and still are) unhappy with the standard [...]
Recently I’ve been hearing a lot that there is a new bubble in Silicon Valley. People are worried that it will burst and we will feel the effects over here. They generally cite one off events like Snapchat turning down a $3bn acquisition or Google’s $3.2bn acquisition of Nest as evidence.
This sort of [...]
PandoDaily has an article up entitled The Series B trap, that’s about the dangers of premature scaling. It perhaps happens most at Series B, but can certainly happen earlier. In my experience this is one of the hardest points for many entrepreneurs to grasp. Everyone gets the idea in theory, but many fall into [...]
Venturebeat reported yesterday that US startup valuations have reached ten year highs. You can see from the charts above that median valuations have been increasing at all stages from seed through to Series D or later. Series A valuations have increased more slowly than other Series’ which shows that there is a bit of [...]
This chart comes from the OECD who are widely respected for their forecasts. By 2060 they predict the Eurozone will be the fourth largest economy in the world after China, India and the USA. The USA will have fallen from first place to third. This change will bring profound shifts in global politics and [...]