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More in the 50 Questions Series
50 questions: What are the different types of early stage funder? | 50 Questions: What are the Key Terms in a Termsheet? (Part 1 of 2) | 50 questions: If you’re raising money, what questions should you ask the venture capitalist? |50 questions: Where do VCs get their money from
Together with Nic Brisbourne of The Equity Kicker / DFJ Esprit, I am writing a series of 50 questions you should ask when raising venture capital. We expect the series to run for a year, after which we will collate the answers into a book. We view this as a collaboration, so please comment to help make this series even more useful.
This week, Nic answers the question “Where do VCs get their money from?”
In case you felt that VCs don’t understand how hard it is to be a start-up entrepreneur raising money, consider this: “Many prospective VCs fail to raise a fund entirely, and for most others the process takes 1-2 years. It isn’t that bad for everyone though – as with startups there are some hot funds at hot periods in the market who get their fund raising completed in a matter of weeks.”
Nic explains the process of raising money, the sources of capital and the nature of Limited Partners in more detail over at The Equity Kicker.