Category

Venture Capital

The Economics of VCs Recycling Management Fees

Several years ago, I wrote a post titled Why VCs Should Recycle Their Management Fees. From the start of Foundry Group in 2007, we have felt strongly about this. We feel that if an LP gives us a $1 to invest, we should invest at least that $1, not $0.85 (the average fee load over…

A Venture Capital Career Is Like Walking from Boston to San Francisco

I’m a recent conversation with Eric Paley, he gave me an amazingly wonderful analogy for how the career of a VC unfolds. He said: “Being a VC is like taking a walk from Boston to San Francisco” I’d never heard that before so I said: “tell me more.” He went on an awesome ramble, which I’ll…

Early Stage VCs – Be Careful Out There

In addition to our own funds, we are investors in a number of other early-stage VC funds as part of our Foundry Group Next strategy. Yesterday, in one of the quarterly updates that we get, I saw the following paragraph. “Historically, the $10 million valuation mark has been somewhat of a ceiling for seed stage…

GP/LP Fit

The idea of product/market fit has been around for a long time. And, while founder/market fit is a newer concept, it turns out to be just as important. Recently, Beezer Clarkson at Saphirre Ventures wrote a post titled Raising A Fund? 9 Questions That Help Get You To GP/LP Fit. If you are a GP raising…

Step Into The VC Time Machine

One of the things humans are bad at is remembering the past and incorporating the lessons they learned from difficult experiences. I’m sure there’s a philosophical word for this, but I’ve now heard the phrase “this time it is different” so many times that it doesn’t register with me as a valid input. I woke…

Venture Deals Online Course Starts Again On May 6th

Kauffman Fellows and Techstars are once again running the Venture Deals online course. This time it runs from May 6th to June 26th. We’ve now had over 10,000 people take the online course and have been delighted to meet or email with a bunch of them over the past few years. If you want to…

VC Offsites – Our Approach

I regularly get asked by other VCs about how we do our offsites. When we started Foundry Group in 2006, we had a very deliberate quarterly process in an effort to learn all about each other and become highly effective at working together. For the first three years, we were disciplined about the timing and process,…

The Greater Colorado Venture Fund

Announcing the Greater Colorado Venture Fund! I am proud to share that the Colorado Venture Capital Authority (VCA), in conjunction with the Office of Economic Growth and International Trade (OEDIT), has selected the Greater Colorado Venture Fund to steward the state’s rural venture capital allocation. Following a competitive application process, the state will be funding…

People Are The Price of Admission

In my post recently titled Does VC Fund Differentiation Matter? several people commented on some variation of “people” as the key to everything. I don’t view people as differentiation. I view them as the price of admission. Amy just walked by, read this over my shoulder, and said: “I don’t know what that means.” Hopefully, by the…

Fair and Reasonable

I was on the phone with an old friend last week. We were talking about a few things around a negotiation, and he said something profound. “I just want things to be fair and reasonable.” I loved this phrase. I learned this value from Len Fassler and Jerry Poch in 1993 when they acquired my…