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It’s not hard to find people willing to write the narrative that “venturecapital is not an asset class” or “venturecapital has performed terribly.” That’s a shame because many of these people missed out on what will be a few great VC vintages.
Picking a VC is hard. So I thought I’d write about out with what I would look for in a VC knowing what I know now and why. Most VCs are book smart. VCs should be more of a coach than proscriptively telling you what to do. You want a VC who will spar with you but then STFU and let you get on with things.
For the past few months I’ve been doing nearly daily “Snapstorms” or short videos with startup advice released on Snapchat. Among the most comical things to me in the past few years is just how much it annoys some people that I use Snapchat. Why would a VC do that? I LOVE writing. Snapchat is faster and easier.
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.” We did know about Snapchat as early as anybody. Mostly I wanted the journalist to know: We love Snapchat.
If you are a super young, well-connected, Stanford CS or EE, worked at Facebook early, have a bit o’ dosh and have VCs chasing you … you are exempt. ” Case in point: Facebook, Twitter, Tumblr, SnapChat. Should I write off my $2.5 Your VC is right. Or anybody who remotely resembles you. Let’s see.
Or you know the other one — the one where Snapchat lost $2 billion in just one quarter. Do you imagine eventually raising VC and trying to build a faster growing company?” They raised $5 million in venturecapital to fund growth. The VC-backed businesses sometimes “blow up.” Two-f **g-billion! What a disaster!
billion in venturecapital to LA’s technology startups and 2014 will shatter that figure. Over the past 4 years LA’s tech fundings have growing at a 30% compounded annual growth rate (CAGR) which is > 4 times the US average VC CAGR (7%). In the last full year where we have data LA attracted $1.5
seed and they are writing $1.25m of it you can expect them to require a board seat) The competitive landscape (If you have several sources of capital you can likely politely decline the board request or can grant them a seat but ask for it to be “common appointed” and those revokable if you need in the future). But it’s quite rare.
In 2008 I started VC blogging. I went to an industry event where people actually called me self-centered for writing publicly. In 2016 I finally cracked SnapChat with the launch of Discovery. It’s hard to be discovered on SnapChat right now so I occasionally tweet my SnapChat add handle: https://www.snapchat.com/add/msuster.
Earlier this week, Derek Norton , a long time advisor to the media, Internet, and technology industry in Los Angeles, announced a brand new venturecapital fund called Watertower Ventures (www.watertowerventures.com). I hate to put us into the pre-seed and seed area, so I am saying literally, first institutional capital.
There’s nothing wrong with these businesses but as a VC you tend to see 5 similar ideas all at the same time and knowing that it’s going to just come down to who executes the best it’s hard to pull the trigger on a A-round until you have more data on who’s winning. So Why Imbellus?
What is the True Sentiment of VCs? I recently survey more than 150 VC friends from all stages and geographies what they thought about the market by asking “Which of the following statements best describes your mood heading into 2016?” But not a VC or Bill Gurley or myself would have spooked it 2 years ago.
There has been much discussion in the past few years of the changing structure of the venturecapital industry. The rise of “micro VCs” or seed-stage funds. The rise of alternative sources of capital (crowd funding and the like). On the surface the narratives have been. Why is this?
In more than a decade of writing about the Internet and tech-enabled businesses I’ve learned that mobs don’t do nuance well. Our social graphs are locked in Facebook, Twitter and Snapchat. Breakout companies become much harder and this isn’t likely to improve unless we give new companies the tools and capital they need to flourish.
Thus begins Snapchat and why you don’t get it. Snapchat will be used for both like the Internet (and TV) are. I just need to break you of the idea that Snapchat is for one thing – it is not. But since Snapchat uses the frequency above your hearing range it’s nearly impossible to “get” without help.
As of this morning Clinton still holds a lead in the popular vote but even that as I write is only by 0.2% And for the occasional person who Tweets or comments, “Mark, I follow you to hear about tech or venturecapital — not politics. This isn’t my work blog or my company blog or a venturecapital blog.
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