VC Fund Lifecycle: Harvesting

The third and final stage of a VC fund takes place when the majority of the surviving portfolio companies begin to prepare to exit. This stage is typically referred to as the harvesting stage.

The J-Curve: The Evolving Value Of A VC Portfolio

The value of a venture capital fund’s portfolio typically falls below the value of the invested capital before increasing to provide a positive return. For example, if a VC invests 100 dollars, it’s likely that the VC fund will be worth only 80…

Founder’s Equity Will Vest After VC Investment

When a VC sends you a term sheet it will typically include a clause about the operating founder’s equity vesting over time. This means that the founders of the company will not have rights to some or all of their equity stakes until they earn it by…

VC Fund Lifecycle: Investing

Once a VC raises his fund (or has a first closing), he has capital to deploy. At this point, he enters the first phase of the fund life cycle: investing.

Typically VCs spend the first three to five years of a new fund investing in new companies. The…

How Raising Angel Money Can Hurt Your Odds With VCs

Angels (people investing their own money) serve an important role in the life cycle of startup — they enable startups to take their first step in product development. The venture community needs them.

Do You Need To Quit Your Day Job?

It’s relatively common for an entrepreneur to start working on a new venture while still employed by another company. As a result, a few entrepreneurs have asked me if it’s acceptable to start raising a seed round while still keeping a day job.