Tag

Venture Capital

When VCs Don’t Bullshit You

I know many entrepreneurs who feel that VCs have played them, gamed them, deceived them, or bullshitted them. But this doesn’t only happen to entrepreneurs. VCs play this game with VCs all the time. One of our deeply held beliefs at Foundry Group is that there is no value in bullshitting anyone. We screw up…

Why The SBIC Doesn’t Work For Venture Capital Anymore

I woke up to an article in Daily Camera today titled Small Business Administration trying to bring SBIC funds to Colorado. There are so many things wrong in the article I felt compelled to write about it. This isn’t a knock on the writer (Alicia Wallace) – I like Alicia and think she does a…

When VCs Invest Together, Does Ability or Affinity Matter?

I woke up to a bunch of VC related things in my twitter stream this morning. I had a nice digital sabbath yesterday so I was a little surprised by how much there was. I tried cranking out a #tweetstorm of them using Little Pork Chop but I found the tweetstream experience to be very unsatisfying and…

Why VCs Should Recycle Their Management Fees

I’m an investor in a bunch of VC funds. Some of them recycle their management fees; others don’t. I’ve never really understood why funds don’t recycle their management fees. Understanding what “recycling management fees” means is a fundamental part of understanding the economics of a venture firm. Here’s how it works. Let’s assume a $100…

Spending The Day With Another VC Firm

A few weeks ago Hunter Walk and Satya Patel of Homebrew, a one year old seed-stage VC firm that my partners and I are investors in, came and spent the day in Boulder. This wasn’t the typical “hey – I want to come see you for a meal when I’m in town” kind of meeting that happens…