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...
[Continue Reading]How to get superior returns in venture capital
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, credible, and backed up...
[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 (or recruit a Partner)
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]What content should you promote where?
Your company typically has seven layers of content marketing. Here are tips for each layer. What content do you use in marketing your firm? And what content should go in which place? Your company (or your fund, if you’re a VC) typically has a 7-layer stack of marketing content. In descending order of importance, they...
[Continue Reading]First-ever survey of VC tech stacks
We think one of the industries with the greatest room for improved use of technology is venture capital itself. Blue Future Partners, a fund of funds, and PEVCTech.com are now running what we believe is the first-ever large-scale survey of VC firms’ technology stacks. Filling out this survey should take you no more than 7...
[Continue Reading]How to scale support of portfolio companies
As I’ve worked to build out our portfolio acceleration platform, the #1 question I think about is: how do we scalably support our companies? Large private equity funds like KKR can afford to pursue a consulting model (Capstone), typically with associated fees, but that doesn’t normally make economic sense for a VC. We have lower AUM,...
[Continue Reading]How VCs structure a syndicate and recruit coinvestors
When I meet with other VCs, family offices, and other institutional investors, the most common question I get is a variation of: “What are the highest-potential companies in your portfolio which are raising now?” and “Which of your companies are raising now and are looking for coinvestors?” I thought it might be helpful to provide...
[Continue Reading]