Forget VC Funding: Best Alternatives of VC funding
For decades, raising round after round, burning cash and the founders are left with one digit equity.
VCs own the equity. Founders are like puppets.
They want 10x returns in 5-7 years whether you
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Anonymous 2
Stealth • 4h
"Smaller checks from micro-VCs might sound friendly, but they still expect returns. It’s just VC-lite, not a true alternative.
With VC 2.0 emerging in india i.e., boutique firms operated by former founders - do you see a growing culture of founder friendly VCs or is this an opportunity to tap into?
3 replies1 like
Sajin
•
Foundation • 14d
VCs are backbone of startups. How much do you know them?
Here are my few insights:
1. VCs invest funds raised from Limited Partners, and accountable to generate them returns in 10 years
2. VCs earn 2% management fee annually from the fund, perform
When A VC firm is investing capital in your startup, how much money do they expect in return?
I was having a talk with a very senior VC recently, I asked him the same question. He gave me the following data:
Pre-seed/seed - 100x returns
Series A -
#9TDAYVC- DAY-14
🎯What is Hurdle Rate?
🎯What is Carry Fees?
🎯The preferred returns are also called as “Hurdle Rate” in VC & P.E Funds. It is the threshold return that LP’S should receive prior GP’S receive. In developed markets, The hurdle
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1 replies1 like
SamCtrlPlusAltMan
•
OpenAI • 7m
Studying India's rapidly evolving VC landscape & have some hypotheses on its future:
1. Cold outreach deals?
With startups outpacing VCs, cold outreach may rise, pushing VCs to better evaluate pitches.
2. Deal sourcing shake-up?
Swiggy's upcoming IPO will be a multibagger win for early VC investors.
🎯Detailed insights will be available once their DRHP is public, but if you look at the history -
- Elevation Capital: Investment of $5.9 M turned into $61.8 M (~10x returns)
-
#9TDAYVC-DAY-15
What are Additional Returns?
What is the Catch-Up Clause?
In Developed Markets, The structure is in 2-20% where 2 is Management Fees & 20 is Additional Returns.Additional Returns & 2-20 structure is not ideal in Indian AIF Market
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1 replies1 like
Vrishank Raj
Stealth • 8m
This is how the VC ecosystem works.
- People from Canada and the USA contribute their money every month to a pension fund with the aim of receiving a pension once they retire
- The pension fund, aiming to generate returns, allocates its money to v
I sometimes worry, about what’s happening in the Indian VC ecosystem 😅😅
Based on a recent chart shared by seasoned VC Vinit Bhansali, in the last 10 years, the number of VC firms in India has grown by almost 25x.
And based on an assertion by Peak
Forget VC Funding: Best Alternatives of VC funding
For decades, raising round after round, burning cash and the founders are left with one digit equity.
VCs own the equity. Founders are like puppets.
They want 10x returns in 5-7 years whether you