What’s your approach to questions like: Was the decision to allocate capital to privates a good one? Did we select good managers? Within our private investments, did we make good allocations? As Cambridge Associates says: “[there is no] single “right” measure for private investment performance”. I have #AFewQuestionsAbout venture capital returns and performance measurement. Do […]
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 postAdapted from a TweetStorm. An “index of Fortune 500 companies in which the founder is still deeply involved performed 3.1 times better than the rest over the past 15 years” from Bain & Company Do founder CEOs outperform because they have: – Owner’s mindset – Unique, spiky feature, or capability that gives a business special […]
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 […]
Read the postAs a founder turned investor, I’ve immersed myself in the startup world for ~20 years. I have spoken with 100s of founders and investors and seen many sides of the ecosystem. As a founder, I’ve been the beneficiary of VC investment and seen it work. I spend much of my time focused on the benefits […]
Read the postPattern Matching Description Pattern Matching is when an investor uses patterns or experience from the past in order to make decisions about the current investment. You can think of it as reasoning by analogy or using the benefit of experience to recognize similar situations. It can be used for attributes of the business like seeking […]
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