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Some Reflections on VC Investment Decisions

Both Sides of the Table

I know I can’t be in every deal and I know that the easy part of being a VC is writing the first check in a deal. And when the press releases and the attaboys wear off it still comes down to real work. If an accelerator is writing you they’re also writing 25 other VCs. I don’t. Pay attention.

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The Corrosive Downside of Acquihires

Both Sides of the Table

It has even gone so far that we now have evocative headlines in the tech press such as “ Buy or Die ,” which is what got me thinking about this post. But the press (and I suspect many of the senior execs of these companies) don’t really explore the corrosive downside of these acquisition. Woo the press.

Press 357
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The Authoritative Guide to Prorata Rights

Both Sides of the Table

For starters some funds are small and thus while they put $750k into your company to own 10% of your company they might not be able to write another $2 million if you then raise a $20 million round (10%). New investors sometimes want early investors to put in money to “prove” they have confidence in the new price.

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Understanding the Herd Mentality of VCs and How not to Let it Psyche You Out

Both Sides of the Table

Nobody commits, nobody wants to set a price, nobody wants to stick their neck out then BOOM! Founders read the tech press every day filled with stories about these $20 million fund-raisings by this firm and that firm and it sounds like everybody else is doing it except for you. as an industry we succumb to “herd mentality.”

Press 232
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Why Acceptance of Failure is Critical to Startup Success

Both Sides of the Table

I have experienced many first-time entrepreneurs with too much hubris if fund-raising came easily and press was fawning and employees joined in droves and customer adoption has been rapid. In London when founders failed they were ostracized in the press and culturally I believe it became harder to raise capital.

Startup 261
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How Do I Feel About the Snap IPO Given I Didn’t Invest?

Both Sides of the Table

Every tech or major news journal in the country is preparing to write their Snap, Inc (creators of Snapchat, Spectacles, etc) stories and many of them seem to want a “How does it feel to have missed this investment story.” Of course that was a wrong narrative for both companies. Mostly kidding. Another firm funded them.

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The Most Important Political Show on TV

Both Sides of the Table

We have reduced our discussion to a reality TV show or People Magazine and thus we debate the price of Marco Rubio’s shoes, the length of Hillary Clinton’s bathroom breaks and whether being born in Canada should exclude Ted Cruz from the presidency. The featured a leading analyst from a bank who has been writing on the topic lately.

Pricing 150