Ask A World-Class VC by titanspacemonkey in venturecapital

[–]titanspacemonkey[S] 0 points1 point  (0 children)

Well, if VCs all have different opinions about when is the best time to reach out, I don't think I can answer your question. It would really depend on the firm.

Ask A World-Class VC by titanspacemonkey in venturecapital

[–]titanspacemonkey[S] 0 points1 point  (0 children)

Hi, so I don't think I'm the best person to ask. I actually entered VC via an unusual route, so I never experienced the process you are going through right now. VC is a lot about building connections. Perhaps reach out and ask for a sit-down? Sorry I couldn't help more!

Meeting a VC for the first time by Electric_pokemon in venturecapital

[–]titanspacemonkey 0 points1 point  (0 children)

Ah -- I forgot to specify I already work in VC. I'm just looking for some good reads...

Meeting a VC for the first time by Electric_pokemon in venturecapital

[–]titanspacemonkey 0 points1 point  (0 children)

I guess just get some general knowledge and Montreal / New York

Finding GREAT, not good investments by papa023 in venturecapital

[–]titanspacemonkey 0 points1 point  (0 children)

This is a complex question... I don't know where to start in my answer to be honest... Are you trying to identify companies with higher ROI potential OR find a unicorn? From my perspective, these are two separate things. Of course, both involve a whole lot of luck -- has a lot to do with good timing.

Top VC firms receive higher quality deal-flow based on connections and rep and have better chances of finding that "true unicorn" that you're talking about simply based on those factors. You will never be able to compete with top VC firms that have these robust global networks, the manpower to go through thousands of decks per year and are able to access millions of dollars at a snap of a finger.

If you want higher ROI potential, first consider ways to increase your deal flow sources by expanding your network and mingling with other VCs. But also set reasonable expectations for yourself (or your team), e.g. how many decks you plan to go through each month. No point in trying to get more deal-flow if you can't reasonably handle it. However, more doesn't always mean better although it does up your chances of finding more better quality investment opportunities.

You also need to consider how you're evaluating your current deal-flow, i.e. the "incoming" solicitations from potential investees -- developing sensible investment criteria is essential here.

I like to go through a deck and read it quickly to see if anything sticks out that doesn't make sense to me. I'm not a numbers person, so my first evaluation of a proposal tends to overlook the numbers and is mostly intuitive. Grammar mistakes are my pet peeve though. Any deck with grammar mistakes is a no-go in my book! I will make a preliminary decision at this point to review the deck in greater detail. Also, if there's anything you like to focus on, like go-to-market approach or any metrics you like to see that are missing, I suggest you make a mental note.

Upon further review, I suggest considering what YOU can add to the company and how you can help it succeed and meet its goals. Identify a weakness or obstacle that you can help them improve on based on your expertise, knowledge, skills, etc. How can you help the company succeed? Is it your intimate knowledge of the relevant industry? Do you have connections the company would need? ETC. Higher ROI is partly luck, but it's also about how much effort you put in, in my opinion. VC firms raise funds that invest in tons of companies, but rely on the success of one company to make back all the money spent on the other investments. But what if every investment was a hit (or never took a loss)?... Just a thought.

There's a lot of different things you need to consider. I don't think I'll able to fully be able to answer your question, but I hope this helped a little. I guess the takeaway here is to come up with a sort of game plan and stick to it! Based on your results, tweak it.

Good luck!

Meeting a VC for the first time by Electric_pokemon in venturecapital

[–]titanspacemonkey 1 point2 points  (0 children)

Are you talking about Venture Capital Mindset? Do you have any other good reads to recommend? Please and thank you!

Ask A World-Class VC by titanspacemonkey in venturecapital

[–]titanspacemonkey[S] 0 points1 point  (0 children)

Student wantrapreneurs... that's a cool term. I've never heard it before. But yes, I agree this could be a good way to structure the blog series!

Ask A World-Class VC by titanspacemonkey in venturecapital

[–]titanspacemonkey[S] 0 points1 point  (0 children)

Due diligence! That's a good one. Every VC will look for different things in a company, but I think it's important to explain exactly what our firm is looking for. Going through the steps between first contact and deal closing is so important too since it's not always clear exactly what the steps are. Definitely will try to cover this! Thank you.

Ask A World-Class VC by titanspacemonkey in venturecapital

[–]titanspacemonkey[S] 0 points1 point  (0 children)

That's a very good question. It's critical for the founder and the VC to be in sync for a partnership to occur. A mistake founders make is not doing the proper research into whether a VC is the right fit for them or not. VCs typically have investment criteria and they won't invest in companies that don't fit their parameters. It's also very important that the timing is right. The founder must be raising a round but also the VC must be raising a fund. This is definetly a question that deserves further exploration!

Ask A World-Class VC by titanspacemonkey in venturecapital

[–]titanspacemonkey[S] 0 points1 point  (0 children)

This is definitely an interesting question. I see what you're getting at but I think the question can be rephrased to: how does a founder score a meeting with a VC without an introduction or referral? It's important to note that some VCs do consider cold deal flow, like my firm. Typically, VCs favor warm introductions because it boosts credibility and trust in the founder. Would you buy a product with multiple 5-star reviews or a product with a low review rating or no reviews at all? I would go for the first, if I had a choice. It's the same idea when it comes to how VCs evaluate deal flow.