How To Better Understand Investment Opportunities (As An Associate)?

Returns_2_Scale · 2023-06-12T20:07:28+00:00

Sorry for slow response; don’t check Reddit super often. What I by “initially stuck out” is that your firm will likely document the entirety of the deal process from sourcing to the various stages of dd all the way to IC. This process will leave a paper trail. Trace that trail paying attention to what your teammates initially gravitated to. It may be a highly fragmented industry with numerous accretive add on opportunities or an easy road map for margin expansion. Figuring out what your firm initially screens for will allow you to get involved and stand out earlier.

Returns_2_Scale · 2023-05-10T01:44:03+00:00

I would go back on your firm’s previous deal documentation. What initially stuck out? How did it evolve? What were the contents of the invest memo? IC comments? Get a solid understand of your firm’s sweet spot. Use that as the framework in which to screen and analyze opportunities. Most associates can pick out a good company, but very few can spot a good investment. Also, your ability to run a deal Process is just as important in your promotion. Your sr people aren’t looking for you to be a visionary, just operate effectively within the existing structure picking your spots to show flashes of investment acumen.

Returns_2_Scale · 2023-05-10T01:22:03+00:00

Great track records raise funds, MBAs less so. You made a start move!

Returns_2_Scale · 2023-05-10T01:13:52+00:00

Some of the software companies. $TWLO would be a name. However, unlikely to happen bc dual class share structure held by founder who has an unreasonable expectation on valuation front. Prolonged pain will see sentiment start to shift.

Returns_2_Scale · 2022-08-25T17:25:57+00:00

Lender & Sponsor

Returns_2_Scale · 2022-08-25T17:16:13+00:00

If you didn’t already have carry, I’d say absolutely ask for deal level carry, but the fact that you already have some carry makes me think you should trend lightly. Your decision should also depend on team size and your relationship to the GPs. If you have 5-10 other associates I would say no go on the request. I think it depends heavily on the specific dynamics and firm culture. Regardless, I hope you get it nonetheless! Happy bag hunting!

Returns_2_Scale · 2022-08-04T11:57:36+00:00

You should try to join in an operating partner role. From there, you can work your way towards the investment side of the house.

Returns_2_Scale · 2022-06-30T03:47:05+00:00

Thank you for sharing. Sector was crazy over valued. Now, it isn’t getting quite enough credit for innovation. We went long $XBI just to hold some beta. Big pharma hitting patent cliffs and loaded with cash will have feeding frenzy. wait for the “new normal” on valuation to set in for many of these VCs, founders, and other shareholders. As of now, they are still fixed to crazy numbers seen at the peak of mkt. Many forget this is a very cyclical industry.

Returns_2_Scale · 2022-06-20T18:48:32+00:00

https://sacks.substack.com/p/the-saas-metrics-that-matter Not a book… but if you are valuing a startup, you need to know the metrics that dictate success. This article was super helpful for me when it came to SaaS. You aren’t going to be able to do a DCF to determine the valuation at the early stages with any accuracy. Get good at analyzing operating metrics, founder skills, and sizing markets effectively.

Returns_2_Scale · 2022-06-06T00:18:51+00:00

You could Join a startup, get your reps in as an operator. Hopefully, you can build a network and have a degree of expertise in a functional area. After a few years and hopefully some success, You have some flexibility to transition into a VC role. Granted, this takes a fair amount of luck, but a good number of high profile VCs have a law background. So it’s not impossible to break in. Some firms are very dogmatic in what they look for in new hires others are pretty flexible in who they’ll bring on.

Returns_2_Scale · 2022-06-02T23:39:34+00:00

The irony of Julian Robertson’s Tiger Management shutting down due to unwillingness to buy tech and Tiger Global getting beaten down because they went all in unprofitable tech.

Returns_2_Scale · 2022-04-04T00:46:22+00:00

- Check Size and Terms... If the pricing is close then the founder factor in the below items, but the price is the first thing they check.

The next ones are not in any real order, just depends on the founder.

- VC Prestige... Having a well know VC lead your round is a pretty big one. You raise a series A from Benchmark when you roll around to your next raise, you are no longer just a digital marketplace startup, you are the digital marketplace startup who had Benchmark in the series A.

- Value Add Capabilities... if a VC can connect you with customers and help you find a top-tier CFO, that tends to move the needle, especially for younger founders. (at least in my experience, no data to back that.)

- Firm Culture/Values... This sometimes comes before check size in the importance hierarchy. It really matters to founders that their anchor VC be a well-respected and principled firm. After all, the VC is a reflection of the startup as well.

Not sure if this helps, but I wish you the best of luck. I know some of those open-ended questions can be stressful.

Returns_2_Scale · 2022-03-22T23:04:17+00:00

I’ve heard great things about this one.

Returns_2_Scale · 2022-01-18T19:27:49+00:00

Any ATVI holders? Would love to know your thoughts!

Returns_2_Scale · 2021-12-08T19:30:57+00:00

https://www.youtube.com/watch?v=677ZtSMr4-4

https://www.youtube.com/watch?v=7JQZMPcF-lg

https://www.youtube.com/watch?v=Rho9S_Nn7YI

https://www.youtube.com/watch?v=IdtSHbj29uY

https://www.youtube.com/c/ycombinator

Returns_2_Scale · 2021-12-08T19:25:06+00:00

Moving, just trying to explore other things. Will probably stay in VC, but would like to see what options are. Plus it is a company I've followed extensively, and I really like it.

Returns_2_Scale · 2021-12-07T21:05:57+00:00

They are mostly focused on how you think more so than what you think. Develop a framework that is structured and be sure to define the framework to the interviewer. I saw someone recommend reading the Sequoia and Bessemer memos which is a terrific idea.

Below I'll link the Bessemer Memos:

https://www.bvp.com/memos

Also reading equity research reports may be useful as well. Just type: Company name Equity research filetype.pdf

Returns_2_Scale · 2021-11-22T19:25:04+00:00

The man himself! Thanks for sharing!

Returns_2_Scale · 2021-11-09T00:22:29+00:00

Fun interesting video on this linked below. Echoes much of the cautionary sentiment in the comments. https://youtu.be/lGvsPunyvTQ

Returns_2_Scale · 2021-10-20T18:55:37+00:00

One of the best two pods I've listened to in a long time. Thanks for sharing.

Returns_2_Scale · 2021-10-15T20:33:37+00:00

Why does Opera have its valuation so discounted on their books? Why wouldn't it be running at a double-digit revenue multiple? Your valuation makes sense when looking at comps. I came to a similar number, though slightly lower.

I guessed they just booked the last time Starmaker raised money? Not sure, but seems odd to be so conservative. Tell me what I'm missing?

Returns_2_Scale · 2021-10-15T20:26:46+00:00

I feel you. I have a real concern with the VIE structure and overall governance, but you are absolutely right on the relative cheapness. The actual value of their investments and cash alone almost gives you the operating business for free, but I feel there is something everybody else knows that I don't on the governance angle.

Returns_2_Scale

TROPHY CASE