BUS 314 Lecture Notes - Lecture 6: Techcrunch, Carried Interest, Clean Technology

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 314
• Professor: Andrew Harries

Document Summary

If you don"t achieve the valuation target that vcs were expecting: may need to do another round rather than exit. Funds that invest in companies with high growth and exit potential ( ten+ bangers ) Vc rounds typically take 20-30% fd post. Size and stage of fund matters find out! Investors called limited partners are high net worth individuals or institutions. Are in small/service niche with limited upside. Don"t have much customer traction: this is a moving target. Haven"t got your books and records in order. Are in a space that"s out of favour. Many vcs have an investment thesis: see crunchbase, cb insights, venture deal. Large funds will stretch thesis for hot deals: but clean tech won"t cross to it etc. Need warm introductions: best intros are from successful fund investees or other vcs they deal with. Management fees: typically 2, funds under management. Fall 2020: profits only realized on exit.