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 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 postVenture firms rely on the collective abilities of individuals and in many meaningful ways is a professional services firm. Therefore, human capital strategy is central to the business strategy of a venture capital firm. We have written about this in past Venture Patterns posts, such as Bring in Stars, Grow AUM, and Size is Strategy […]
Read the postShort Description In staffing the partnership, focus on or be just as open bringing proven professionals that come in with a new network, fresh perspective and strong skills. Benefits Fresh perspective Potential for high performance team member without as much training Trade-offs New folks may not fit May have performance drop off if the person […]
Read the postI’ve wondered before about the cause of founder/CEO outperformance. While it wasn’t always believed, there has been more research and more vocal advocacy over the last decade that the best CEO of a startup is the founder. Some assert the best CEO of any company is the founder. And there are lots of convincing arguments […]
Read the postHow should a lead investor in a seed round get paid for their role? In public markets, a high-profile investor will get the benefit of a better price for seeing and sharing an opportunity. In pre-seed private company investment, investors that go first will usually have a lower price. At Series A stage, a high-profile […]
Read the postNational public attention has appropriately shifted focus toward race inequality. Efforts to promote inclusion along lines of race and gender are at new heights today, and there is a pervasive sense that greater inclusion of minority voices in spaces of power and leadership can bring in perspectives that are necessary to building a better and […]
Read the postIn a previous post, we asked what the qualities of a successful entrepreneur typically are, whether those qualities can be learned, and whether environmental forces play a large role in entrepreneurial success. One piece of research that post discussed is an economics report titled “Who Becomes an Innovator in America?”, led by Harvard University professor […]
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