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Venture Capital Bloggers: Who's who in the top 5 states

From time to time a new ranking of the VC must-read blogs appears on the internet. During the research for this post I went through many of them, some based on the number of unique visits some others on the author´s quality scale or personal preferences. As it turns out, the first fifteen positions are always taken by the same guys.

In a world where internet has taken over and leadership claims to be global, it occurred to me to check the relationship between an active and prolific VC community (based on # of deals and $ invested) and the existence of VC thought leaders in that community.

California, Massachusetts, New York, Washington and Texas ranked in the top five positions in terms of venture capital invested based on the 2012 figures provided by the National Venture Capital Association (Colorado was 6th. Yay!). Let’s see who are the most relevant venture capital bloggers in these communities and what are they saying.

 

For the purposes of this post a state is considered a Community and blogger is a thought leader. In the VC world, bloggers aren’t just opinionated, they are professionals with years of experience.

1. California:

Eureka! We have found it, the world champion in Venture Capital based on number of deals and amount invested. Thus it doesn’t come as a surprise that it is also the winner for the number of relevant bloggers!

Area: Menlo Park / Silicon Valley

Firm: August Capital

Blog: Venture Blog.

Area: Los Angeles

Firm: GRP Partners

Blog: Bothsidesofthetable

  • Paul Graham: Co-founder of the Y combinator and for many the “king” of bloggers. In his minimalist looking website you can find gripping essays (no blogposts) that won´t leave you indifferent, just check his last one on how to get startup ideas.
Area: Mountain View

Firm: Y Combinator

Blog: PaulGraham

  • Chris Dixon: Entrepreneur and investor with a moderate style. Dixon is considered a “greater explainer of trends” and so he does in hardware startups.
Area: Menlo Park / Silicon Valley

Firm: Andreessen Horowitz.

Blog: CDixon

  • Ben Horowitz:  self declared a rap fanatic, Horowitz uses rap lyrics as prefaces of his blogs and doesn´t have a problem disclosing numbers and strategies. Check his last post on how to hire sales people.
Area: Menlo Park / Silicon Valley

Firm: Andreessen Horowitz

Blog: ben´s blog

The list doesn´t finish here it goes on and on with other brilliant bloggers such as Bill Gurley or Dave Mcclure. So it seems the most VC active state has the most active and relevant bloggers.

 

2. Massachusetts:

Meanwhile on the opposite coast, Massachusetts emerges as the second VC power.

  • Rob Go, Lee Howe, David Beisel. These three VCs are the cofounders of Next View Ventures, but apart from sharing their company they also share a passion for blogging each one of them with a different style and point of view.
Area: Boston

Firm: Next View Ventures

Blog:  Rob Go, Lee Howe, David Beisel

Area: Boston

Firm: Volition Capital

Blog:  Thinking about Thinking.

 

3. New York:

With New York City as largest, richest and most influential regional economy in the United States, and Manhattan as the home to six major stock markets, venture capital is rapidly growing in this region.

  • Fred Wilson: The raising voice for the New York Tech Scene. Famous for his blog section MBA Mondays  with around 160 posts in MBA topics such as revenue models-gaming. His blog constitutes an enormous body of work and knowledge worth a deep dive in.
Area: New York

Firm: Union Square Ventures

Blog: AVC

Area: New York

Firm: Brooklyn Ventures

Blog: Thisisgoingtobebig.com

 

4. Washington State

Nobody stood up in the Seattle community until the 7th of October of last year, when the VC Greg Gottesman wrote his first blogpost.

  • Greg Gottesman:. The VC mixes personal opinions and experiences with business tips and life style advices in a looking promising blog.
Area: Seattle

Firm: Madrona

Blog: starkRavingVC.

 

5.Texas

“The exception that proves the rule?” With a GDP bigger than The Netherlands or South Korea Texas ranks the 15th economy in the world and the 5th state in VC investment… And there is nobody taking the lead out there in the bloggosphere… The more I think about the whys of this, the more my fingertips tingle for a new blogpost.

If you are reading this and you know of someone please let us know we will be happy to include a Texan blogger!

 

6. Colorado:

Yup! I know It´s out of the top 5 but…

  • Brad Feld: In a mix between personal and professional thoughts Brad Feld has gained the respect of the VC and entrepreneur community not only in Colorado but also worldwide. Prolific, eclectic and sometimes controversial FeldThoughts is full of articles worth your time. Check out his last post on Software patents.
Area: Boulder

Firm: Foundry Group

Blog: Feld Thoughts

 

In a nutshell, in California, Massachusetts, New York and Colorado  the equation seems to work and a high levels of investment are accompanied by well-know blog leaders spreading the word out. On the contrary, Texas and Washington don’t follow the pattern! Yes, on the internet area leadership is global, but to certain extent VC investments and communities are still local and so they are their know-how and customs. Texan and Washingtonian bloggers or bloggers-to-be raise your voice! We avid readers, entrepreneurs, innovators, angels and investors want to know and are waiting for you!

 

About the Author: Sara Rodriguez is the new Associate Director of the Rockies Venture Club. Please consider welcoming her and introducing yourself when you see her at RVC events. 

 

 

NexGen Storage Acquired For $119 Million – From the VC's Perspective

Article by Tim Harvey, regular contributor to Rockies Venture Club Blog

This week, Fusion-io acquired Louisville, CO based NexGen Storage for $119 million. The next day, I had a chance to sit down with venture capitalist Kirk Holland of Access Venture Partners, who was also on NexGen’s board. Access Venture Partners co-led the $2 million series A round with Grotech Ventures, and Next World Capital later led the $10 million series B.

NexGen founders John Spiers and Kelly Long have been around the venture capital circuit before – they were co-founders of Boulder-based data storage company LeftHand Networks, which sold to Hewlett-Packard in 2008 for $360 million. A few years later, they again had a vision for a better data storage technology and started from scratch. This time around, solid-state disk drives and cloud infrastructure were ever more important, and they developed their product from the beginning with these ideas in mind, building it to intrinsically protect their competitive advantage. John and Kelly bootstrapped NexGen to get started in 2010, and reached out to Kirk regarding venture funding after about 6 months. Due diligence meetings, which went on for a few months, were held in Kelly’s basement where they first hatched the idea of NexGen – and a few short years later the $12 million in capital turned into an acquisition nearly 10X that amount. The exit was faster than expected, but they thought the terms were great and they were excited to work with Fusion-io.

Kirk’s previous firm, Vista Ventures in Boulder, began investing in LeftHand in 2001 so he had the chance to get to know John and Kelly over many years. He was impressed with the team more than 10 years ago, so in this deal he said “working with John and Kelly took the team risk off the table.” Given this strong relationship and the fact that LeftHand had one of the biggest VC exits Colorado has seen, they were ready to do it again. “The industry was pretty crowded when we made the investment,” Kirk said, with both venture-backed and big name tech companies all trying to do the next big thing in data storage. He thought NexGen’s technology could leapfrog the other products, and the experts Access Venture Partners brought in for due diligence confirmed that. “They were really passionate about building a great, sustainable business. NexGen reinforced the idea of working with trusted relationships,” Kirk said.

Access Venture Partners is a big name in the Colorado venture capital landscape. This is the second fund they’ve closed, and the MD’s there have invested over $100 million in more than 50 technology startups so far. These companies as a group have gone on to raise over $1.1 billion in additional capital, growing revenue 15X since initial investment, and creating over 3500 high paying jobs in Colorado. AVP currently has 20 companies in their active portfolio, with 19 successful exits. Their focus is on high-margin technology businesses in large or rapidly growing markets, especially in data security/storage, cloud computing, and digital media/consumer internet businesses. They lead the vast majority of fundraising rounds they participate in, and while sometimes that means writing the largest check, they also lead by investing first and getting other VC firms on board. They also like to work closely with entrepreneurs after the investment is made, often taking a board seat and using their connections to help place key executive talent, as they did with NexGen.

Kirk is a heavy hitter in the area as well, after moving to Colorado from the Bay Area. In addition to the nearly $500 million in exits he’s been involved with through LeftHand and NexGen, he led the Series B round for Rally Software, which raised $84 million in an IPO in April 2013. He was also an investor/board member for MX Logic, an Englewood, CO SaaS company that sold to McAfee in 2009 for $140 million. He’s been a TechStars mentor from the start, with Access VP also supporting and investing there early on. His focus within AVP is on cloud technologies and SaaS/consumer internet companies, and although he likes to leverage existing relationships, he also explores as many other startups as he can. “You have to keep looking under rocks and be open to the next generation,” he says. He believes in entrepreneurs who are passionate about building a great company, not looking for a quick buck. “It’s a red flag when I think someone is only in it for the money,” he says. Nonetheless, many of these companies have gone on to create substantial value here. “We’re really most happy for the founders and the (NexGen) team’s success. We’re here to support the entrepreneurs, but they’re really the ones that drive it.”

Big exits, especially in the 9-figure range like NexGen, are going to really help put Colorado on the VC map. While Boulder may be famous from investors like Brad Feld and TechStars, Kirk believes there is a shortage of early-stage capital in the area. “Early-stage investment has dropped in Colorado over the last 5-10 years as VC’s didn’t raise follow-on funds, while the number of young companies has grown”, he says. Venture capital isn’t limited to state lines, but it’s certainly helpful to have investors nearby. Fusion-io actually has offices just miles from NexGen, so this acquisition was sort of in their backyard as well. The universities in the area (CU, DU, CSU, Mines) attract technology and engineering talent, and many of the students that come to Colorado don’t want to leave after graduation. That’s what happened to me, and even though skiing might’ve been my excuse to move here when I was 18, it’s the people and the startup community (and the weather) that have keep me here. These schools also have close connections to the startup community, through groups like CU’s Deming Center for Entrepreneurship, and Colorado School of Mines’ Technology Transfer program to help students commercialize their inventions. Big players like Google, Microsoft, and Oracle are also importing talent by adding to their already-large ranks in Colorado. “The people here are very motivated and passionate about what they do,” Kirk says, “without the focus on a quick buck that leads to higher employee turnover rates” that concerned him with some companies he saw in the Bay Area. Colorado is also a less expensive place to build a business than anywhere in the big coastal cities, and still has solid venture capital groups like VCIRRockies Venture Club, as well as the sweetheart of Boulder, TechStars.

Although April was a great month for Colorado VC-backed firms, we have to keep innovating and building great companies to strengthen the region. More investment capital will certainly help – but it’s the people here that drive entrepreneurial success.

Article by Tim Harvey, regular contributor to Rockies Venture Club Blog