Going from Good to Great as a VC
We’ve met thousands of VC/PE/hedge funds over the past 15 years, investing in >100. What differentiates a good #VC from a great #VC? Three things at the top of the list:
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Access: how do you see unique, exciting deals before your competition? What’s unique about your experience and network to drive access to the best founders?
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Portfolio Construction: is your model great? Fred Wilson at USV invests in ~25 co.’s per fund w/ 2-3 fund returners (target), along with reserves. What’s yours?
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Founder Support: how do you help your companies win? Founder Experience All-Stars Maria Tangarova & Greg Clayman say all founders want help w/ hiring, customer intros, good people, and expert insights. Anything else?
#OpenLP - Get Inside Your Investors’ Head
Now you know you need to have great access, portfolio construction, and founder support. That will give you allow you to build a track record of great returns. From there, you need to tell your story to investors (see #30 VC Fundraising in 2023) to raise the capital you need to go execute!
One of the best resources we’ve seen to get inside the head of a LP investor is #OpenLP! #OpenLP aggregates and amplifies insights across the entrepreneur ➡︎ GP ➡︎ LP venture ecosystem.
#OpenLP demystifies the LP perspective, helping GPs stay on top of their game and better understand how venture works. By aggregating articles, podcasts and videos, #OpenLP helps GPs, LPs, entrepreneurs, and other stakeholders develop greater understanding of the technology startup ecosystem.
Here are some of the most informative posts included in their year-end update:
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Outperformance: The Power of Power Laws (Beezer Clarkson & Evan Tarzian)
That’s all for today folks! Thanks for your support and for spreading the word! Share this on Twitter or LinkedIn to help grow “the crew!”
