Like founders, VCs also raise money from investors, too. VCs also known as “General Partners” raise money from Limited Partners or LPs. In the spirit of Guy Kawasaki’s classics The Top Ten Lies of Entrepreneurs and The Top Ten Lies of Venture Capitalists, we offer The Top Ten Lies GPs Tell LPs. “Lies” could also […]
Read the postThanks Spencer Greenberg hosting me on the Clearer Thinking podcast. I would love to have you listen and share with others. It was a fun conversation and covers many themes that overlap with Venture Patterns. Topics include: -Decision analysis in venture -Arguments for and against quantification in decision making -Combining expert judgement with AI or […]
Read the postThis essay was first published in 2009 and has been lightly edited. Entrepreneurs solve chicken and egg problems. I believe that any business worth doing has at least one significant chicken and egg problem. Sometimes multiple or more complicated ones. A typical example is that you feel that: Investors Depend on Product Product Depends on […]
Read the postWe started Higher One as college students in 2000. I believed in the potential of fintech but was naive about the regulatory landscape. We grew the company to serve millions of college students and became a public company. And we experienced regulatory pressures firsthand. Despite our best intentions to follow the rules, we ended up […]
Read the postThis essay was first published in 2009 and has only been lightly edited. Starting a company? Talk to customers. When I talk to entrepreneurs in the early stages, I strongly advocate for talking with potential customers as early as possible. I believe this to be true in almost any situation or industry, although there may […]
Read the postDescription When a VC is able to connect with a founder on the level of values, they form a deeper understanding. Based on this understanding, it is much easier to do business together. For example, a company may have foundational moral values like diversity, mission, or environmental sustainability. A VC may communicate that they care […]
Read the postDescription Include a successful founder in the pitch to the prospective portfolio company. The founders may be Venture Partners or may be more loosely affiliated with the firm. For example, it might involve the successful founder taking the prospective portfolio company founder out to dinner. The approach work best when the founder talks about working […]
Read the postIn the venture capital world, there is a cliche that “lemons ripen quickly” or “lemons ripen early”. And you may hear talk of the J curve. How are the two related? What do they mean? In this sense, “lemon” means an investment that does not work because the company goes out of business. We contrast […]
Read the postA friend recently asked me for the best books I would recommend to a startup founder. Here is my list. I’d be curious if you have any additions or changes. If you could only read one book, read The Great CEO Within. If you could add a second, make it Lean Startup. All Time Top […]
Read the postI interrupt your scheduled programming to let you know about an exciting new project. I want to tell you about my new podcast, Startups for Good. Where we explore high-growth and high-value ventures. Join us to learn about how startups can be a force for good not only profit. Guests on Startups for Good include […]
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