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Picking a VC is hard. So I thought I’d write about out with what I would look for in a VC knowing what I know now and why. Most VCs are book smart. VCs should be more of a coach than proscriptively telling you what to do. You want a VC who will spar with you but then STFU and let you get on with things.
There is a second set of career discussions I have even more frequently than my “angel yourself” advice but this type is almost never discussed publicly in blogs, which tend to emphasize only billion-dollar opportunities, 20-something technical founders and Silicon Valley elitism. Being a CEO begets the network to be a CEO.
It spoke to me because it so resonates with my nearly daily advice to entrepreneurs and VCs alike. I went as far as to call it the best Tweet of 2015 so far because it encapsulated my advice so succinctly. All advice you receive is too generic to help you – you need to decide for yourself in your exact situation.
A well-known entrepreneur turned VC, who will go unnamed because I am not sure he would want me to share this conversation publicly, once told me “if you remove a founder, you must sell the company within a couple of years or it will start to decline in value.” It will be an incredible trip. Most are not.
In the VC insider baseball world a discussion has gone on about “VC platforms” over the past 5 or so years. While firms define platforms differently, let’s just say they are the services that a VC offers outside of investment capital and partner time on boards or providing intros.
If you’re an entrepreneur who would like to see this clause in more startups please ask your VC to include it in future term sheets and link to it from their home page. “We We strive to invest in companies that are consciously working to create a diverse leadership team?—?one We immediately realized this was a great idea.
See How to negotiate a partner role at a VC or private equity firm.) You can work as a consultant, an interim executive, a board member, a deal executive partnering to buy a company, an executive in residence, or as an entrepreneur in residence. . At Versatile VC , we’ve used all these models. Board of Directors.
When you set up a board it is often initially a combination of the founders and the early investors. This post sets out how I believe founders (and investors) should think about independent board members having worked with many of them for the past 20 years. The board is where large equity investors get their representation.
But honestly there are times when being a VC can feel like that, too. Successful entrepreneurs achieve much through their personal leadership traits that inspire others to do great things with them – sure. And they will offer you some of the best business advice you will ever receive if you’re open to it.
A good early-stage CEO needs to be accessible, to be accountable for producing results and should be establishing the cultural norms of the company through direct leadership at all levels. This applies to both founders and to VC’s that work with them. I’m not a big believer in too much hierarchy. A quick example.
As female entrepreneurs, we are independent-minded and innovative, and this advice is critical for securing our future and the future of our families. She provided me with so much advice on business strategy, business channels and HR. My first female mentor was the incredible Janine Allis , founder of Boost Juice.
But should you actually write one if you’re a startup, an industry figure (lawyer, banker) or VC? I was meeting regularly with entrepreneurs and offering (for better or for worse) advice on how to run a startup and how to raise venture capital from my experience in doing so at two companies. thought leadership.
. “Yes&# was given to me by one of my favorite angel investor / seed VC’s to work with – John Greathouse of Rincon Venture Partners and author of the blog InfoChachkie that you should check out because it is filled with great info from a guy who has been a very successful operator. So what are you waiting for?
As an early-stage VC I love this phase. Many companies don’t reach the next phase either because their leadership doesn’t adapt as an organization or because they don’t design processes that lead to scaled outcomes. We recently added Richard Mumby to our leadership team.
I know because I marked the occasion with a blog post on how to have a great VC meeting. The decisions were endless, the choices not obvious and the VC involved a pain in the ass. The board was unanimous in our opinion of this including outside director Ian Rogers who has served as Jonathan’s mentor and friend.
One of the most common questions we hear from founders is “How do I manage my board?” It’s something that provokes anxiety, because this is the first time the founder/CEO is subject to external supervision, and the board has powers that include the firing of the CEO and the senior management. But first, what’s the purpose of a board?
I apply visual thinking for nearly everything I do: preparing for important phone calls (I imagine my opening lines, I imagine the responses), writing keynote presentations, deciding whether or not to invest in a company, preparing for board meetings – you name it. These are all creative processes. That’s a shame.
These range from companies pitching me to portfolio companies presenting at board meetings. So part of seeing you with a team is to get a read on team dynamics and believe me all VCs discuss the team dynamics after you leave as in. Here are some guidelines for you – particularly for VC pitch meetings.
Startups/VC. Drama at BharatPe : The Tiger-backed Indian fintech company is seeing turmoil in its leadership, with co-founder and managing director Ashneer Grover asking its board “for the removal of chief executive Suhail Sameer” from the leadership group at the company.
And then take your experience and turn it into a piece of thought leadership career advice to share with people reading this. My advice to people early in their career is pretty simple: your mission isn’t to pursue a career, it’s to discover it. Put yourself in interesting situations.
Such is leadership. And that’s how I view VC today. If you’re not engaging your VC this way you’re losing out. I have often found entrepreneurs want to present the positive progress of the company to impress the board rather than engage in debate about how to make things better.
Today I’d like to give that advice in more tangible terms and with a framework to think about your tasks – the funnel. Meeting with 12 biz dev targets makes for great conversations with your board and takes the heat off of you for a while but doesn’t matter for s**t if none of them close in the end.
So you’re interested in raising capital from a Revenue-Based Investor VC. Which VCs are comfortable using this approach? This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. No board seats or personal guarantees. For RBI, return caps of 1.2x-1.8x
Yet when the senior leadership came into our room to discuss technical problems on the project they always discounted her and even worse always made her take notes and type up the results of our discussions. I immediately got to work at board level in companies. I talked with a few VCs and batted around the idea of becoming a VC.
ThoughtSpot CEO Sudheesh Nair shared some of his thoughts about building a sturdy leadership team and drafted a thorough checklist for entrepreneurs who are putting a crew together. His initial advice? 5 factors founders must consider before choosing their VC. 5 factors founders must consider before choosing their VC.
Set in Boston this year, Early Stage will host sessions with advice and takeaways from top experts and provide opportunities to meet entrepreneurs taking incredible journeys. But Natasha and Rebecca write about how balancing those two, for female VCs, has often manifested in different, often frustrating ways.
As an alternative I’ve also found board meetings to be a good rallying call. It gives a tangible goal and also the reward of the team that completes the project the opportunity to interact with the board. This is exactly where leadership comes in. Leadership Startup Lessons' This happens on 100% of projects.
If you want to be the marketing person or you want to be perceived as a businessperson or a VC or technical person or whatever you want to be perceived, people will always define you. I came from a board meeting to here. I want to build a great company, and I want to get you on my board for my new ridesharing service.
In addition to his rich experiences working in the venture capital (VC) and private equity (PE) sectors, Joseph has also sharpened his investment acumen through his multiple years in the audit and stock-broking industry before deciding to finally launch his cross-border investment firm, Kairous Capital , in 2015.
We spend time looking at their org savvy, their leadership skills. And one of my biggest advice to those folks is, look, presumably, we all have the technical and functional skill set for this job. He’s had incredible stability amongst his leadership team, but that’s not always the case. Nolan Church: I love that.
Same as VC funds are deeply acquainted with Silicon Valley, tech investors cannot ignore this hub of innovation that has produced global market leading companies and serial entrepreneurs. What is your advice to startups in your portfolio right now? The cliche VC answer: strong team, big market.
In a recent interaction, Koh talked to AsiaTechDaily about her background and expertise in the VC funding space, the companies that Play Ventures focuses on, and other stuff that startup founders need to ponder on. We see ourselves as a mix of cheerleaders, enablers (when it makes sense), sanity checks, and sounding boards.
But the wins that actually happen, they happen due to the work of sales leadership and sales people. That starts with sales leadership and sales management. So we’d love your thoughts on maybe just advice for companies rebuilding their partnership orgs or they’re developing their sophistication on the ELG front.
Last week, right after I finished up this newsletter, I turned to Twitter and saw controversy over whether venture capitalists should charge founders for advice on their pitch decks. The anger came from the potential that founders could get confused on whether that advice could lean to a future investment from the same VC.
In some ways, it’s a bit like VC funds that are setup to empower certain groups through investing that don’t actually acknowledge the structures and impact of venture capital itself on different populations. I don’t think Audrey was particularly well supported by her high-profile board members. Should we be surprised?
Perhaps unsurprisingly, for every £1 of VC investment in the UK, 89p goes to all-male founding teams. Similarly, only around 13% of ethnic minority-led businesses are able to secure VC or Angel funding. but that won’t stop the almost daily influx of unsolicited advice and second-guessing you’ll receive. Oh, most definitely.
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