What tech stack should a microinfluencer use? Most investors including me spend most of our day doing the same things people have always done in the job: in my case, due diligence, deal execution, etc. However, being a “microinfluencer” is now also part of the job description. In the future, [...continue reading]
New video: Private equity origination best practices
A few weeks ago I presented on "Where Are the Deals? Best Practices of Private Equity Funds in Origination" at the Wells Fargo SBIC Symposium, an event for their portfolio funds. I focused on using technology for sourcing. I've posted below the video and slide deck. [...continue reading]
VCs eating our own dog food: Using technology and analytics to make better investments
(To see the video above, please click the image, and then click on the Play button.) 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 [...continue reading]
Use agile budgeting to manage your business
Instead of budget approvals, monitor key metrics and give managers more flexibility Traditional budgets can be destructive and a huge waste of time. How should a growth company manage their budget? Does the annual budget approval process even make sense in a fast-moving firm? My friends who are [...continue reading]
Who is building the Renaissance Technologies of Private Markets?
The AIR Summit ("Alpha Innovation Required") just posted the video and slides from my keynote on, "Who is building the Renaissance Technologies of Private Markets?" (To see the video, please click the image below, and then click on the Play button.) I wrote a detailed paper on this here. [...continue reading]
Should you raise traditional VC or Revenue-Based Investing VC?
Most founders who are raising capital look first to traditional equity VCs. But should they? Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. RBI [...continue reading]
Should your new VC fund use Revenue-Based Investing?
You’re working on launching a new VC fund; congratulations! I’ve been a traditional equity VC for 8 years, and I’m now researching Revenue-Based Investing and other new approaches to VC. The question I’m asking myself: should a new VC fund use Revenue-Based Investing, traditional equity VC, or [...continue reading]
Why are Revenue-Based VCs investing in so many women & underrepresented founders?
A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. Many are reporting that they’re seeing a more diverse pool of applicants than traditional equity VCs… even though [...continue reading]
Who are the major Revenue-Based Investing VCs?
So you’re interested in raising capital from a Revenue-Based Investor VC. Which VCs are comfortable using this approach? A new wave of Revenue-Based Investors (“RBI”) are emerging. This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. [...continue reading]
Revenue-Based Investing: A new option for founders who care about control
Does the traditional VC financing model make sense for all companies? Absolutely not. VC Josh Kopelman makes the analogy of jet fuel vs. motorcycle fuel. VCs sell jet fuel which works well for jets; motorcycles are more common but need a different type of fuel. A new wave of Revenue-Based [...continue reading]
In Venture Capital, Should You Be a Momentum or a Value Investor?
As a venture capitalist, should you be a Momentum or a Value investor? To simplify, there are two classic approaches to public markets investing. The first is Momentum Investing, “a strategy to capitalize on the continuance of an existing market trend”, which usually meaning that the [...continue reading]
Checklist for Launching a New Venture Capital Fund
I posted a while ago my syllabus on how to manage and invest a VC fund. As a prequel, here are some of the resources I’ve found helpful in launching a new fund: What it takes to start your own venture capital fund Strategic Considerations For Start-Up Private Equity Fund [...continue reading]
Why venture capitalists are investing in international startups
Why are more US VCs investing in international startups? Take a look at The Fortune Unicorn List: of the top 100 most valuable unicorns in 2016, 39 are currently based outside of the United States. While fundraising of US VCs has dropped slowly as a percentage of global limited partner [...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, our limited partner investors have their own due diligence standards, and we manage our firm to keep in line with their standards and expectations. The biggest risk for many VC and private equity funds is team [...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 [...continue reading]
How to get superior returns in VC
A friend of mine interviewed for a job with massively successful hedge fund manager Steven A. Cohen. My friend sat in the conference room, and Cohen walked in. He looked at his resume, and asked just one question: “What’s your edge?” My friend got the job because his answer was differentiated, [...continue reading]
Venture capitalists eating their own dog food: How private equity investors are using technology and analytics
I just published a guest essay in AlleyWatch on Venture capitalists eating their own dog food: How private equity investors are using technology and analytics (as of Sep. 2017). As of Dec. 2019, I posted an updated version here. [...continue reading]
How to negotiate a partner role at a VC or private equity firm
It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. I thought it would be helpful to put together some notes on market norms and issues to consider in negotiating a partnership at an institutional investment firm. These are many [...continue reading]
