#35 VC Resource Wednesday

#35 VC Resource Wednesday

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:

  1. 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?

  2. 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 reservesWhat’s yours?

  3. Founder Support: how do you help your companies win? Founder Experience All-Stars Maria Tangarova & Greg Clayman say all founders want help w/ hiringcustomer introsgood 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:

  1. Succeeding in Venture Capital is Mostly About Knowing What to Buy. But When To Sell Matters Also. (Hunter Walk)

  2. Outperformance: The Power of Power Laws (Beezer Clarkson & Evan Tarzian)

  3. The Next Big Thing in 2023 Will Be... (Nikhil Basu Trivedi)

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!”