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Venture capitalists 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 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]

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]

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]