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The Changing Venture Landscape

Both Sides of the Table

We have global opportunities from these trends but of course also big challenges. On the one hand, you’re over paying for every investment and valuations aren’t rational. That used to be called A-round investing. The biggest change for us in early-stage investing is that we now need to commit earlier. of the fund.

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Why do you win?

This is going to be BIG.

When I first started in venture capital, back in 2001, I used to fund funds. I worked for an institutional investor that invested in both venture capital funds and later stage growth deals. Many of the reasons why someone had previous success might have to do with unique windows of opportunity that no longer exist.

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This Week in VC with @VCMike Hirshland of Polaris Ventures

Both Sides of the Table

This lasted from about 2001-2004. Since then Mike his built his career by investing in early-stage companies (seed or series A), which is remarkable given that Polaris Ventures is a $1 billion fund. Simple: according to Mike Polaris has followed on nearly every seed investment that they’ve done. Total raised: $30mm.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment). Just because the valuation in absolute terms isn’t a big difference does not mean that people aren’t paying higher than intrinsic value for these investments.

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The Berkus Method: Valuing an Early Stage Investment.

Berkonomics

For those of us who’ve invested in early stage companies, especially technology startups, we have confronted a universal problem. There are many ways to project the value of a company for purposes of pricing an investment, but all rely upon the revenue and profit projections of the entrepreneur as a starting point.

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Making Sense of the Stock Market Drops in Relation to Venture Financing

Both Sides of the Table

I saw a few friends politely suggesting that “now was a great stock buying opportunity” meaning that given the stock market is off by 10% it was a great chance to buy and lock in presumably low prices before the market rises again. If the next 30 days stays calm then investment will pick up. So, too, investments.

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Who Should you Hire at a Startup?

Both Sides of the Table

Please don’t also confuse this with whether a VC should invest in a CEO who’s done it before – that’s a given. This was a reasonable achievement when you consider that it was 2001-02, one of the worst years to be selling enterprise software and we were selling it SaaS style, which was still evangelical back then.

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