Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. When I was single, I registered for (a lot of) dating websites. When I met my now-wife, I realized that any technology that can find me a spouse is a killer...
[Continue Reading]How to choose an investment banker…or replicate one
Should you hire an investment banker? And if so, who? The good news: even if you are a small company and can’t afford a banker, you can synthetically and cheaply replicate a banker. That’s part of the value proposition of an institutional VC; I have been the (unpaid) investment banker for many of my portfolio...
[Continue Reading]Venture Capital compensation data and recruiters list
This is part of a series on building your career in venture capital: Reading list for working in private equity/venture capital, including all of the major online communities, programs, and educational options for people studying VC How to win consulting, board, operating, and investment roles with private equity and venture capital funds (video) How to...
[Continue Reading]The investment committee rejected you; what does that actually mean?
One of the most common ways a venture capitalist rejects you is a variation of, “I love you, I love your company. I brought it up to the investment committee (“IC”)….but they turned it down.” What does that actually mean? Is this the business equivalent of telling a flame, “It’s not you, it’s me”? A...
[Continue Reading]Limited partner due diligence on VC and private equity funds
As a VC, I have a standard due diligence list for companies I’m reviewing. Similarly, limited partner investors have their own due diligence standards. To summarize, as an allocator I’m looking to “Give ‘PEAS’ a Chance”: People, Execution, Alignment & Strategy. To raise capital from allocators, you first need a compelling cover email, to motivate...
[Continue Reading]How to scale a VC (or private equity) fund
Managers of VC funds typically want to grow their business aggressively, just like the founders we back. But, we normally have a clear ceiling on how high we can grow AUM, before hitting practical limits to deploying capital within the traditional VC model. My Partners at HOF Capital are younger than I am, which means...
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