How Venture Fund Economics Work
Fred Wilson has an excellent post up today titled Venture Fund Economics. It appears to be the first of several posts he’s planning to write on this topic.
"When I write about venture fund returns, there are always comments and questions that lead me to believe that the economics of a venture fund are not well understood. And since most of the readers and commenters on this blog are people who work in the startup ecosystem, I think its important that the economics are better understood. So I am planning on some posts on this topic in the coming weeks."
Everyone that is interested in venture capital in any way should read this post (and presumably the subsequent ones.) I’ll try to remember to point them out when they appear.
Thanks for the tip. I do follow Mr. Wilson. And our board is considering VC funding as a possible source of finance while we trudge through our patent process. I think Mr. Wilson does a great job of breaking down the VC financing mystique as many young startups as well as some more seasoned entrepreneurs that have not needed VC or Angel funding do believe that VC funding happens quite differently.