A Manifesto For Mindset-Based Investing
Mindset-Based Investing is a new approach to select emerging VC managers based on their personality traits and approach to risk vs. track record and other usual metrics. Apply now to…
Aram
73 posts
The Most Underrated VC Due Diligence Item: How Founders Learn
Why do so many Founders make the same mistakes, costing Investors substantial capital? My previous explanations—overconfidence and fear of failure—capture part of the problem. There’s a third factor that VCs…
Are Entrepreneurs Delusional? The Overconfidence Factor in Startup Success
One of the most consistent personality traits I’ve observed in entrepreneurs over the years is a tendency to live in denial. They don’t seem to perceive the inherent risks of…
How The Legendary VC Arthur Rock Evaluated Startup Founders
Arthur Rock’s name is tied to early Silicon Valley, that’s why he thrones among our collection of VC quotes. A decade before Don Valentine founded Sequoia Capital and Eugene Kleiner…
Is Money The Main Driver of Successful Entrepreneurs?
I recently attended meetings where experienced VCs and Founders claimed that money is the primary driver of successful entrepreneurs. This idea stood out because it conflicted with much of what…
Why Series A Graduation Is So Hard: Lessons from Paul Graham
Securing a Series A round has always been a major hurdle for startups, but recent data highlights just how difficult this milestone has become. Historically, roughly one in four startups…
Venture Capital Investment Committees: Best Practices From Elite VC Firms
Investment committees are the VC partners’ meetings that make or break deal opportunities. They remain largely secretive in an industry that has opened considerably in the last few years. Like…
How ChatGPT Can Help Venture Capitalists Make Better Investment Decisions
I recently attended a talk by MIT professor David Rand, a leading researcher on misinformation and the psychology of belief. Rand’s findings challenged my assumptions about confirmation bias—a concept I’ve…
VC Funds DPI: How Long Until Venture Capital Delivers Outlier Returns?
Limited Partners evaluating Venture Capital funds expect to see early returns, measured in terms of DPI (Distributions to Paid-In Capital). However, VC funds DPI can take years to materialize. Understanding…
Speed vs. Perfection: How Top Entrepreneurs Dominate Winner-Takes-All Markets
Operating with diligence is often a decisive factor in startups’ successes. In some industries, the first to market wins. In others, it’s the company that innovates most consistently or serves…
Bridge Financing: When Venture Capitalists Throw Good Money After Bad
Deciding to reinvest in a company amid uncertainties is one of the most challenging choices Venture Capitalists face. One question always arises whether they are considering extending bridge financing to…
Into the Hell of VC Job Applications
With the allure of big deals, influential networks, and the chance to shape the next big thing, it’s easy to see why Venture Capital careers are coveted. However, as one…
How Liquidation Preference Fuels Conflicts in Venture Capital
Liquidation preference has long been a staple in Venture Capital funding, serving as a financial safeguard for Investors. While it addresses real challenges around risk and financial returns, it’s far…
How The Best LPs Evaluate Emerging VC Fund Managers
Despite bumps on the road, Venture Capital has become an attractive asset class for Investors and operators, promising cherry-on-top returns and access to what will happen next. More VC funds…
Resilience Matters More Than Grit In Entrepreneurs’ Success
Entrepreneurial success often depends on having the right combination of personality and abilities. Among these, grit—the combination of persistence and passion toward long-term goals—has been hailed as a must-have trait,…
The 7 Secret Evaluation Criteria Venture Capitalists Use To Make Investment Decisions
Venture Capitalists are vocal about what they look for in startups they invest in: stellar team, large market, scalability, exit routes, etc. What about the evaluation criteria they don’t discuss but critically…
How VCs Help Founders Optimize Seed & Series A Funding Rounds
Most startup funding roadshows fail because Founders don’t ask for a coherent amount of money from potential Investors. How should you determine how much to raise? This post and the accompanying video training help you size your equity raise correctly.
Startup Valuation: How Venture Capitalists Value Early-Stage Companies
Startup valuation, often seen as more art than science—and sometimes even as black magic—is a process fraught with ambiguity. Unlike mature businesses with years of historical data and steady cash…
The Problem With SAFEs In Venture Capital
In recent years, Simple Agreements for Future Equity (SAFEs) have skyrocketed in popularity, becoming the de facto instrument for early-stage startup investing. While they offer undeniable advantages, such as speed…
How Experienced Venture Capitalists Analyze Startup Financials
Creating startup financials is, despite claims to the contrary, an essential part of the fundraising process. Solid financial projections based on verifiable data serve both entrepreneurs and Venture Capitalists analyzing…