Be Successful Short Description: Success as a venture capitalist is great for deal flow. When a founder sees that you were an investor in or board member of a successful company, they are more likely to approach you. While there is a debate about the degree persistence of performance across funds, there is less debate […]
Read the postShort Description: To attract more deal flow, some investors take the approach of throwing parties or being at the center of a social circle. Benefits: Building Trust: By building relationships that are not directly about work, you can build trust with a wider variety of people than those you are directly doing deals with right […]
Read the postShort Description: One can increase dealflow and ability to win deals by becoming famous. You can be “really actually famous” (like a sports or movie star) or you can be “VC famous” by being known among investors and founders. You can become famous among investors and founders by being involved with a legendary company or […]
Read the postShort Description. A scout makes small investments on behalf of a VC fund without requiring much involvement from the rest of the team. The check size is smaller and the companies are at an earlier stage than the main fund. The goal is that the scout investments will grow to become investments for the main […]
Read the postDescription A pattern where a firm or a GP has a specific sector or theme focus. While this impacts sourcing, staffing, and many other items, in the area of winning, the pitch is one of expertise, focus, and relevant network. For companies that affiliate with a focused venture fund, the brand can signal the best […]
Read the postDescription Setting a tight timeline for a founder to decide on a term sheet is another strategy for winning. While term sheets typically expire at some point, this strategy is one of setting a quick timeline and making that relevant and salient for the founder. It may be coupled with the message that once the […]
Read the postDescription A personal connection based on rapport, trust, shared experiences or other factors can be useful in winning a deal. The relationship can be long-standing dating back to pre-founder or pre-VC days. Or the relationship can be built in the course of discussing the startup. Benefits Increased Information – by spending time with the founder […]
Read the postDescription Moving quickly through the decision process to an investment decision to issue a termsheet to a company can help win more deals. The termsheet can either be the end of a decision process or issued part-way through. Benefits Founders Feel Appreciated – By providing a termsheet quickly, the VC can signal a recognition of […]
Read the postDescription Venture funds have long sold themselves to founders and LPs as having the experience, insight and networks to increase the chances of a successful company and investment. As the industry has evolved, some firms have added team members (often called the “platform” team). No longer are these firms relying on GPs to provide the […]
Read the postDescription Overview: A VC may choose to pay a higher price for shares in a company to win the deal. Also, the company may be running an auction for shares and price may be the determining factor in winning. Consensus vs Successful 2×2: When many VCs expect a company to be successful, it will drive […]
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