“I’ll get liquidity in the secondary market.”

Please see my Disclaimer. As previously mentioned, venture-backed companies are getting much older before their exit. But the percentage of $100M+ exits grew by 18.7% when comparing the last 365 days with 2013. The increasing share of larger exits is good news for VCs -- if they can get liquidity! Because the percentage of venture-backed … Continue reading “I’ll get liquidity in the secondary market.”

“Flipping” your Company to the US?

I mainly help U.S.-based companies set up shop and scale for revenue in non-US regions. But I see more and more interesting deals where European or Asian companies are coming to the U.S. (Disclaimer!) There are usually two considerations why companies (startups and enterprises alike!) set up a dedicated U.S. entity: international regulations and litigations, … Continue reading “Flipping” your Company to the US?

Meaningful exits in IT now take 11 years from first funding.

For B2B and enterprises IT startups, the median number of years between the first round of venture funding and a meaningful exit greater than $350M is now about 11 years. That's 4.5 years longer than in 2014. I ran a quick Pitchbook search for Venture-backed Information Technology companies, Excluding the B2C segment, With IPOs and … Continue reading Meaningful exits in IT now take 11 years from first funding.

Go Long. And Go Big or Go Home.

Venture-backed startups are staying private longer (no news here).  But how much longer? As venture capital investors, we are trying to learn from past mistakes and successes. And we need to calibrate for different market environments. A recent observation is that the sideways exits below $100M in deal value are vanishing. Startups keep going until … Continue reading Go Long. And Go Big or Go Home.

VC Funding and “Going Earlier for Better Access.”

The story of these VCs usually goes like this: "We're starting to write very small checks much earlier. That way we can track company progress from the inside and are aware of any challenges or problems early on. We believe we can then also discern inflection points much earlier than other outside investors. We might … Continue reading VC Funding and “Going Earlier for Better Access.”

Investing in Autonomous Transportation.

We've seen a recent wave of cash washing over innovations in autonomous driving, ML, sensors. Granted: that chart is dominated by Zoox's $790M and Xpeng's $708M investment levels [edited: Xpeng announced another $587M on August 3rd!], but you get the idea. I pay close attention when segments start capturing more "wallet share" of investors than … Continue reading Investing in Autonomous Transportation.

“I don’t know.”

As an investor, I am more interested in finding out where knowledge ends and where a discovery process starts. It's astonishing in how many pitches entrepreneurs avoid "I don't know" and instead suddenly change topics or point to a statistic where when asked they cannot explain how that would be relevant to the question. "I … Continue reading “I don’t know.”

It’s not done until it’s done.

Deals seem to fall apart last second. Investors step away from their commitment. A large customers is having some hiccups just when you're closing the round. A partner leaves the venture firm just when you're trying to get the signatures. A clause with the employee stock options pool confuses a corporate investor and they put … Continue reading It’s not done until it’s done.