
Dave McClure: Angel, VC or Pirate? - jwilliams
http://www.readwriteweb.com/archives/dave_mcclure_angel_vc_pirate_interview.php
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thomaspaine
I hope Twilio decides to support inbound/outbound faxes. I only need to send
and receive faxes a couple times a year, and I would love a pay per use fax
service. Every inbound fax-to-email service I've seen uses a subscription
model and wants to charge me $10 a month plus setup fees.

The only suitable option I've seen so far was faxaway.com, but I can't tell if
they're still in operation. I tried signing up online and was hit with the
weirdest catch-22 I've ever seen: they wanted me to print out the application
and fax it in.

~~~
ryanwaggoner
Check out these:

<http://www.faxitnice.com>

<http://www.faxzero.com>

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nikblack
"A 30% return (the minimum needed to give LPs a return commensurate with
venture risk after the GPs have taken a 20% performance cut) on $1 million is
$300,000. A 30% return on $1 billion is $300 million. Basically, unless you
land a Google-like winner, it is very, very hard to get a $300 million
return."

The writer has no idea how a fund works or how to calculate returns. That
statement assumes the lifespan of the fund is one year, which it isn't. The
lifespan of a fund is usually 5-9 years. When you hear about Sequoia returning
140% on their 2001 fund, that is _per annum_ over the life of the fund.

So going by the $1B example. If you have $1B to invest, and have set a target
of a 30% return, you need to return $300M _each year_ to your investors. That
is almost impossible in years one and two (and even three) so its usually a
curved path of returns (that dies down towards the end as the last investments
are either killed off or sold for scrap).

As for fee's:

"Ahem, 2% of $1 billion is $20 million, which should be enough for a coupla
Partner Ferraris. "

The 2% fee is also _per annum_. Most funds are not $1B, but they are $150M -
$500M, so the fees can really build up. The better funds wont charge fees in
years where there were no returns or heavy losses, or in the later years of a
fund.

As for the actual interview - not much substance there either.

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dbul
Answer to the last question: yes. I'm totally planning to take advantage of
this service.

