Network Effects: What VCs Really Look For (With Case Studies)
I’m often surprised by how little many Venture Capitalists know about network effects. When I ask them to define network effects and explain how to spot whether a startup is…
I’m often surprised by how little many Venture Capitalists know about network effects. When I ask them to define network effects and explain how to spot whether a startup is…
Early-stage Investors seem to rely on little else than their gut to make multi-million dollar bets on fledgling startups—and their Founders. How do the best VCs mix their intuition and…
Unit economics is a term that can ignite excitement or induce confusion in the heart of Venture Capitalists. The ability to accurately evaluate a startup’s potential can mean the difference…
VC secondaries, buying shares in VC-backed startups in the VC secondary market, has become a trending topic in Venture Capital as more industry players strive to get liquidity. Founders, GPs,…
Venture Capitalists always stress that their most important investment criterion is the quality of the startup’s Founding team. What are the characteristics and personality traits Investors are looking for? More…
When legal tech startup Atrium declared bankruptcy after raising $65 million from prestigious Venture Capital firms, including a16z, co-Founder Justin Kan went public with the lessons he learned from the…
Employee ownership plans (ESOW) are a cornerstone of motivation and compensation, yet their complexity often presents a significant challenge. Two forms co-exist: Employee Stock Option Plans (ESOP) and Restricted Stock…
Understanding how Venture Capital compensation works is akin to deciphering a complex puzzle, with various pieces including salaries, bonuses, carried interest, and attached terms. Factors like seniority, location, firm size,…
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.
Guy Kawasaki is one of the most beloved and recognized figures in the startup world. A former Macintosh “evangelist” and Steve Jobs’s right-hand man, he tried his hand at Venture…
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…
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…
The true performance of Venture Capital is often debated, and myths about it tend to persist despite recent data published by various outlets. Does VC make money as an asset…
Venture Capitalists receive hundreds of investment opportunities annually, making performing quick and effective exploratory due diligence crucial. They need to identify promising startups while swiftly avoiding potential pitfalls. However, data…
Once seen as mavericks making crazy bets shoulder-to-shoulder with the entrepreneurs they backed, Venture Capitalists are increasingly railed for focusing more on the “Capital” part of the job (managing money)…
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…
In the annals of Silicon Valley’s storied history of booms and busts, the tale of Juicero stands out not merely as a business case gone awry but as a psychological…
Venture Capital is a high-velocity asset class requiring quick go/no-go decisions multiple times daily. Data reveals that Venture Capitalists typically spend just a few minutes on startup pitch decks, either…
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…
Managing Venture Capital funds requires an optimal capital deployment strategy, a multifaceted challenge involving intricate knowledge of economic and structural aspects. While the media often portrays Venture Capital as a…