So you’re interested in raising capital from a Revenue-Based Finance VC. Which VCs should you approach? A new wave of Revenue-Based Investors (“RBF” or “RBI”) are emerging. This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for close to...
[Continue Reading]Revenue-Based Finance: A new option for founders who care about control
This essay is part of a series on alternative VC: I: Revenue-Based Finance: a new option for founders who care about control II: Who are the major Revenue-Based Finance VCs? III: Why are Alternative VCs investing in so many women and underrepresented founders? IV: Should your new VC fund use Revenue-Based Finance? V: Should you...
[Continue Reading]In Venture Capital, Should You Be a Momentum or a Value Investor?
Jeff Bezos once asked Warren Buffett: “Your investment thesis is so simple. You’re the second richest guy in the world, and it’s so simple. Why doesn’t everyone just copy you?” Warren Buffett responded, “Because nobody wants to get rich slow.” That’s certainly true in VC. Which leads me to ask: as a venture capitalist, should you...
[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]Marketing Your Portfolio Companies to Other Investors
One of my most important responsibilities as a VC is recruiting appropriate co-investors and follow-on investors. See How VCs structure a syndicate and recruit coinvestors for more on this. I’ve provided here a template for sharing profiles of your companies with other VCs. At every VC where I’ve worked, I’ve created a set of short...
[Continue Reading]How VCs Can and Should Invest in Later Rounds
You have to know when to hold them and know when to fold them. So when a company in which I’m an investor is raising a later round, should we (the VC investor) keep our pro rata or get diluted? My view is that one should always make this decision on an individual company basis. ...
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