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Invest in Lines, not Dots

Both Sides of the Table

In normal times investors will look for “traction&# before investing. I spoke about this more in depth in these two posts: 4 things I look for in an investment & how to manage VC relationships. I didn’t invest in Orgoo but by the time he launched Ad.ly We want to make sure we’re in love. I funded Ad.ly

investing 411
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Both Things Can Be True: Bias and Bad Fundraising Advice

This is going to be BIG.

The startup ecosystem is a terrific manufacturer of bad fundraising advice. I’m going to call this the risk/wealth effect and it definitely nudges the numbers towards the funding of wealthier white men. We shouldn’t be taking the advice of the people that are on this kind of track and weaving it into our own fundraising strategy.

advice 446
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Some Reflections on VC Investment Decisions

Both Sides of the Table

I started in 2007 with a thesis that my primary investment decision would be about the team (70%) and only afterward about the market opportunity (30%). But they are also a tax on your time with portfolio companies, looking for new investments, running your shop and honestly they are a tax on your family life.

VC 374
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Angel Investing Skill 2 – Domain Knowledge

Both Sides of the Table

And we all know that Ron Conway is considered the savviest of angel investors and yet by definition not all of his investments succeed. I like to invest where I have a personally strong connection with the entrepreneur and/or a strong intuition on the market from prior experience. Who ultimately invested in FourSquare?

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Some Advice Before You Hit the Fund Raising Trail

Both Sides of the Table

It definitely has a “d” in it, as in it’s really not fun, raising. the most counter-intuitive fund-raising advice you’ll get 8. Fund raising. But it’s critical for your business, for you as a leader and people who excel at fund raising have an extreme advantage over those who do not. Just send me your dog damn deck 7.

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What is the Definition of a Seed Round or an A Round?

Gust

Marc Andreessen kicked off another great debate on Twitter last night, one that I’ve been talking about incessantly in private circles for the past 2-3 years – what actually IS the definition of a seed vs. A-round. My view: “Spending any time or energy trying to game the ‘definition’ of your round of fund raising is a total waste.

VC 136
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Leave Money on the Table

This is going to be BIG.

For me, I'd rather have a very simple, straightforward business model--one where no one has to think to figure out if I'm giving advice on your next round based on some special vehicle or deal I have on the side. It's definitely not the kind of relationship I want to have as an investor.

advice 371