Finance Entry: September 23rd 2008 | 2 months 13 days ago
There is reasonably good evidence that firms are best-served by investing when prices are low and there is less competition for deals. It’s classic contrarianism. Well, aside from the basic truth that most people aren’t contrarians (by the definition of the word), there is another force at play here: When things are good, VC funds invest their funds as quickly as they can and go out and raise another (typically larger) fund. When things slow down, however, venture funds also slow their pace. Why? Because it’s harder for them to raise that next fund. What happens is that we are hit by an indirect consequence of problematic public markets
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Finance Entry: July 31st 2008 | 4 months 6 days ago
But Google makes $1.5bn of pre-tax profits every quarter. So this big win generates another 12-13% to the bottom line, but just once. It's not a recurring gain.
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Finance Entry: June 23rd 2008 | 5 months 13 days ago
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Finance Entry: April 17th 2008 | 7 months 19 days ago
So I can’t say for sure what percentage of total VC firm profits come from the annual fees versus the carry, but it’s big. And as that ratio grows, so does the firm’s incentive to raise (and therefore deploy) large amounts of money.
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Finance Entry: January 19th 2008 | 10 months 16 days ago
The PricewaterhouseCoopers/National Venture Capital Association MoneyTree data is out for 2007, and the $29.41 billion invested in companies is the highest level since 2001, when VCs plowed $40.62 billion into businesses.
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Why Venture Firms Tighten the Purse Strings in a Down Market « Five Years Too late