What better place to write about VC in the OC than on OC VC???  Once again, OCVG is hosting its annual “VC in the OC” program on September 12, 2007 so please mark your calendars and stay tuned for details.  I, along with several of my fellow OCVG board members, are putting together an excellent program that will surely highlight the best of VC in the OC.  We will have a keynote speaker followed by a VC panel and then transition into local start-up company presentations.  I’m really looking forward to it so please stay tuned for more details as I’ll post all the requisite facts and logistical details in the next few weeks!

In addition to Twitter, I’ve been playing around with Facebook and find it an interesting “tool” to reconnect with old friends and colleagues and to meet new ones.  The fact that Bay has earmarked funds for Facebook apps intrigues me…  I guess I’ll keep experimenting and see where it takes me.  I encourage you to reach out to me on Facebook and send me a “Booze Mail”, or better yet, send me an invite for a real drink!

I’ve been experimenting with Twitter the past couple of months and finally “get” the attraction (but not necessarily the business model…). Twitter would be ideal for small, like-minded communities to stay in touch in the always-on world we live in. I’ll keep posting and see where it takes me here in OC and let you know how things turn out. In the interim, send me a Twitter.

While at Intel, I spent so much time traveling that I maintained a separate blog about the places I visited, or was about to visit, so folks could keep up with me.  I’m not sure whey they necessarily wanted to, but they did so I thought I’d attempt to “recreate the magic” here a bit by including a Google map I put together (click here) of some of my usual haunts (some more usual than others) and invite you to “follow me” around OC via my Twitter account.  I can’t promise I’ll “twitter” any more regularly than I post but there’s a good chance given how simple it is to do so.  Enjoy.

Ben Kuo has a great post on knowing which VCs are actively investing (and which aren’t) over on SoCalTECH Blog
that I thought I’d add some color commentary to in light of my most recent Sand Hill Road Pilgrimage (where I spent the better part of the day paying homage to most of the Top Decile Funds).  As it turns out, as few funds as there are in the “OC VC ecosystem”, there are fewer still that are actually actively investing.  This point was brought home when a certain legendary VC remarked that most of the funds I cited as my fellow travelers in the SoCal VC scene were not actually investing (unless and until they raised their new funds).  After thinking about it a bit and doing some digging, it turns out he was right.  So let me explain a bit why Ben couldn’t be more right than to advise all of you entrepreneurs to do your own diligence and pitch funds that are actively investing in your sector rather than those that are between funds… and why this phenomena exists in our marketplace in the first place.

A VC fund is a legal entity that is typically a limited partnership governed by a limited partnership agreement (a.k.a. the LPA) between the general partner (a.k.a. the GP… typically a separate legal entity and usually a limited liability corporation itself) and the limited partners (a.k.a. the “LPs” / investors).  Most LPAs operate under 10 year terms, with 1-3 1yr. extensions, and bifurcate the term into the “investment period” and the “liquidation period”.  The investment period is typically 3-5 years and is the period of time in which the fund can make new and follow-on investments.  After the investment period, most funds can only make follow-on investments (i.e. invest in the subsequent rounds of their existing portfolio companies).  So why would VCs meet with companies if they aren’t actually investing?  Simple.  The VCs need to keep deals flowing so that they “stay in the game” and abreast of what is happening in their particular sectors of investment.  Furthermore, VCs also like to be able to speak about potential investments while they are raising their next fund and some go so far as to “pre-build” their successor fund’s portfolio as part of their pitch to LPs.  To further complicate matters here, all of this activity often occurs in parallel such that a VC fund may still be operating in its investment period… have made some investments… have even made some follow-on investments… be actively managing their portfolio… and be raising their next fund.   Lots of work to be sure, but all necessary parts of VCs’ circle of life.  The best funds are able to coordinate all of this activity seamlessly such that they are never truly inactive, but not all funds can be among the best…  Happy pitching and happy July 4th!!!