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What I Would Look for When Choosing a VC – Knowing What I Know Now?

Both Sides of the Table

So I thought I’d write about out with what I would look for in a VC knowing what I know now and why. VCs should be more of a coach than proscriptively telling you what to do. I think of VCs as coaches. Fred Wilson wrote perfectly about sticking with struggling investments. Most VCs are book smart.

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Want to Know How First Round Capital was Started?

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They have totally changed the way you run a VC firm, investing heavily in systems & events for their founders that are pushing the boundaries of the way our industry works. I think you'll enjoy hearing him, but if you're in a rush check out the summary notes below. Investing Strategy. and Half.com.

Capital 284
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Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

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Or if you’re a VC raising from LPs you have to list all of your deals, your investment value, your carrying value, your multiples, your IRRs, TVPIs, DPIs, etc along with net cashflows plus your previous LPAs. These collective sets of documents form the basis of what somebody looking at investing would call “financial due diligence.”

Funding 336
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As Populist as it May Feel, 98% of VCs Aren’t Dumb

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In the original version of his post, Andy writes. Most top tier VCs return about 3x invested capital and outlier funds (the best of a vintage) might return 6-8x. But the larger funds usually have lower returns because they are often investing bigger dollars at later stages with less risk and therefore lower returns. Yeah, true.

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People Management: Startup Teams Should Dip but not Skip

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But I knew that to be a good decision maker I needed first hand knowledge rather than just a summary from my CTO. By the time of my second company MySQL was a much more robust solution and worked well when you had to read a lot of information but was less performant on “write&# activities. Attention to detail matters.

Startup 308
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How to Run Better Presentations & Improve Results

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For extroverted people I recommend that entrepreneurs have an “executive summary&# slide up front that cuts to the chase. In this case I recommend the “executive summary&# version but not going into a “deep dive&# on the answer until you hit the detailed slides. It’s in their personality type.

Slides 358
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Don’t Cede Control: Why You Need to Cut out Middle Men in Negotiations

Both Sides of the Table

You can certainly get coaching from your VC on how to play the negotiations since they do it more often than you do. I have investment money at stake so I’m a principal in the negotiation, too. When you want to sell your company one day – the same rule applies. It happens. Why do I care? For them, this is just a deal.