At NVCA we are committed to helping policymakers craft pro-growth policies that help startups continue to drive the U.S. economy and encourage job creation. So when we see articles that fail to understand how innovation and entrepreneurship work, it is our responsibility to correct the record. This recent article in Politico makes just this mistake and threatens to undermine public support for an important provision of the tax code that encourages investment in early stage startups.
Let us start with a couple of facts that we should all keep in mind. Twenty-five years ago, more than 90 percent of global venture capital was invested in U.S. entrepreneurs. Last year, U.S. startups attracted 54 percent of global venture capital investment as other countries continue to reform their policies to build their ecosystems and compete with our long-held leadership in the space. In addition, smaller C corporations have been vanishing. As a result, the total number of U.S. public companies have been reduced by half in only 20 years. Read more »
In case you missed it, we announced exciting news this week – PitchBook is now the official data provider of NVCA! Everyone on staff at NVCA is excited to begin this new partnership, but this is particularly exciting for me since my day-to-day at NVCA involves being immersed in research and data related to the entrepreneurial ecosystem. As the national trade body of the venture capital community, NVCA frequently receives inquiries related to data and research from a wide range of stakeholders, including the media, policymakers, academics, entrepreneurs, limited partners, and venture capital firms (both NVCA members and non-members). In essence, NVCA is recognized as the go-to place for information on the venture industry, and the statistics we release in coordination with our data provider have become the industry standard. Read more »
The uptick in the number of active corporate venture units in recent years has added plenty of new faces to the entrepreneurial ecosystem, but few of them are as unique as former Olympic athlete, long-time commercial pilot, and former airline executive Bonny Simi, the President of the new JetBlue Technology Ventures.
NVCA recently sat down with Bonny to talk about the new corporate venture firm she is leading. A Bay area native who went to Stanford for undergraduate and graduate business and engineering degrees, Bonny was an executive at JetBlue before taking on her current role. She has also piloted commercial planes for over two decades—and continues to do so—giving her a unique perspective on the travel industry that she now brings to the entrepreneurial ecosystem. Read more »
As a growth equity investor, Board Member of NVCA, and current Chair of the Growth Equity Member Peer Group, I am focused on advancing the growth equity asset class through education, policy, and investor community engagement. With that in mind, I wanted to provide a brief update of our recent activities.
The Growth Equity Group advocates for fair treatment for the asset class in key regulatory, policy and tax issues. We are focused on the urgent need to defend carried interest to ensure that the VC engine continues to fuel innovation.
The first two years of every presidential administration are the most active, and we want to ensure that our voice is heard during this significant time. Read more »
What’s the secret sauce for venture capital investing? Unfortunately, I don’t have the answer, but it’s not surprising that the topic has piqued the interest of a number of academics. A recently-released Stanford University Graduate School of Business paper – “How Do Venture Capitalists Make Decisions?” – assesses the VC decision making process to better understand what venture capitalists (VCs) do and why they have been successful. The study examines eight areas of VC decision making: deal sourcing; investment decisions; valuation; deal structure; post-investment value-added; exits; internal organization of firms; and relationships with limited partners.
About 900 institutional VCs at 681 firms were surveyed (including many NVCA members), and the findings shed light on the complex world of venture investors. At a high-level, two things stand out: 1) it is no understatement that VCs make lots of critical decisions across multiple levels of management – investments, portfolio companies, firm-level, and LPs; and 2) there isn’t a “one-size-fits-all” approach – VC practices vary across industry, stage, geography, and past success.
Some highlights of the paper’s findings: Read more »
As a venture investor who has been on both sides of the fence, I know how critical it is for corporate venture capital firms (CVCs) and private venture capital firms (VCs) to play in the same sandbox. In fact, our collective mission is now more crucial than ever. If we are to succeed at driving the growth of innovation, building competitive advantage, and establishing market leadership, CVCs and VCs must work together. The question is: how?
Corporations have proven themselves to be valuable syndicate partners to the private venture community in recent years. However, many CVC groups are realizing that it can also be strategic to be indirect investors. CVC’s primary objective is to access the innovation ecosystem for product development, expansion and acquiring talent. Many of them would prefer to access the community through a strategic partnership with VC firms rather than building an investment organization themselves. Likewise, as venture investors continue to fundraise, the opportunity to have CVCs serving as Limited Partners (LPs) in their funds could be mutually beneficial.
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This week we issued our first-ever report on diversity and inclusion in the entrepreneurial ecosystem. Building a More Inclusive Entrepreneurial Ecosystem, showcases the efforts being made to improve diversity in the venture capital industry. There is still a great deal of work to be done to expand the number of women and underrepresented minorities in venture capital firms and startups. Our report focuses on the actions. By showcasing what NVCA members, entrepreneurs and nonprofits are doing in their firms and in their communities, we want to share and promote ideas that can inspire action.
“As venture capitalists, our job is to constantly innovate and to seek out the latest cutting edge technologies and trends. Diversity – of ideas, voices and backgrounds – is an essential ingredient to our economic growth, competitiveness and creativity.” – Dr. Beth Seidenberg, General Partner, Kleiner Perkins Caufield & Byers, Menlo Park, CA
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A San Francisco native with an MBA from Wharton and experience working at two successful medical device startups in the Bay area, Jan Garfinkle was a trailing spouse when she moved to Michigan over 20 years ago. At the time, there were less than ten venture capital firms in existence in Michigan. Today there are 25, including Arboretum Ventures, which Jan founded in 2002 and remains a Managing Director today.
You don’t meet many San Francisco natives who move to the Midwest to chase a career in venture capital. In fact, one could make the case that that would be the least effective way to break into an industry that is predominantly centralized around a single road in Palo Alto, CA. But for Jan it worked, and in many respects her story is the story of Michigan’s growing entrepreneurial ecosystem. Read more »
“Welcome to Believeland!,” was the enthusiastic greeting from Ray Leach, CEO of JumpStart, Inc., to an audience of entrepreneurs, venture capital investors, nonprofits, foundations, government entities, universities, and corporations, who were among the hundreds gathered for JumpStart, Inc.’s Second Annual Startup ScaleUp event in Cleveland. Read more »
The NVCA Corporate Venture Group (CVG) serves as the voice and advisory council of corporate venture investors within the broader NVCA community. Together, these leaders advance the education, professional development and networking mission of corporate venture groups, enabling them to accelerate the progress of innovation and growth through successful venturing.
Each May, nominated by their peers in the Corporate Venture Advisory Group, we welcome new members of the CVG Leadership Team for an annual term and new CVG Advisors join to serve a four-year term. CVG Advisors shape the NVCA and its service to the corporate venture investment community. Each quarter, the CVG highlights the thought leaders, research and trends shaping innovation and corporate venturing at our blog the NVCA Corporate Venture Connection. Read more »