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Should you give an anchor investor a stake in your fund’s management company?

Raising capital for a new fund is always hard. Should you give preferential economics or other benefits to a seed anchor investor, who makes a material commitment to the fund?  These “VCs for investment management companies” are also known as GP Stake investors or fund platforms.  According to [...continue reading]

Should Small Emerging Managers Use Placement Agents?

The pros and cons of choosing a placement agent for small funds It would make life a lot easier for emerging managers if they could outsource the entire fundraising process. But can you? Empirically, few small emerging investment managers hire placement agents, particularly in venture capital. [...continue reading]

Launching a Portfolio Acceleration Platform at a Venture Capital or Private Equity Fund

I’ve recently advised a number of emerging private equity and VC funds who are wrestling with the question: What are the highest impact steps they can take to support their portfolio companies?  Almost every private equity and venture capital investor now advertises that they have a platform to [...continue reading]

Does Your VC have an Investment Thesis, or a Hypothesis?

(co-written with Stephane Nasser, co-founder of OpenVC, an open-source initiative to collect and analyze all VC theses.) VCs love to talk investment theses: on Twitter, Medium, Clubhouse, at conferences. And yet, when you take a closer look, theses are often meaningless and/or [...continue reading]

Cheat Codes for Raising Capital from Venture Capitalists

We love founder(s) who can say any of the following: Mindset  "Not sure, but we'll get back to you shortly" "We studied all of the past players who worked in this space, and here's what we learned..." “We accomplished something difficult that most people couldn’t.” Even if it’s not in [...continue reading]

Interview on Revenue-Based Finance and Flexible VC

  Keith Harrington of Novel Growth Partners and Founder, Revenue-Based Finance Network, just posted the recording of an interview with me on revenue-based investing; flexible VC; and their future. Video [...continue reading]

The iconic VC-Backed founders are all White & Asian men. So why invest in diversity?

(co-written with Katherine Boe Heuck, a MBA candidate at MIT Sloan (class of 2022); past intern at Versatile VC; and a current intern at Metaprop NYC.) What can we learn from the best 40 venture capital investments of all time? Well, we learn to invest exclusively in men, preferably white or [...continue reading]

Free Money for Startups

We have added a large new section to the Versatile VC website with some of the best sources of free money for tech-enabled founders. That’s free as in “free beer”, not free as in “free speech”. Free tech accelerators: No equity, no cash Free money and support from the Fortune Global 500 [...continue reading]