Perspective, Pontification and Propoganda about Entrepreneurship and Venture Capital, brought to you by David Hornik of August Capital.

« Facebook, Twitter and P&G | Main | Four Square Fatigue and the Evolution of Privacy »

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

https://me.yahoo.com/a/BGYzyswkqoD_DmKCLvpuVEUeUeeH_Gy65Qo-#77270

Nice summation. This would make a good check list for entrepreneurs to filter potential investors and engage in 'reverse due diligence' prior to closing a round (assuming they have more than one firm interested and can be selective).

The challenge of course is how to objectively assess these traits in advance... I guess the answer is to simply talk to previous portfolio company founders and run through each one ("How did VC X help you raise a follow on round"..."What sort of recruiting did he/she do" etc.)

Seems like most of these fall into the broad category of promotion...does the VC actively promote the startup to other VCs, to potential hires, to potential partners, acquirers, etc.

One more criteria to add might be "coaching"...this is similar to strategic advice, but there is value found just in the act of being a release valve when pressure gets too high and in providing moral support.

Nathan Beckord, VentureArchetypes

Scott Kraft

Good analysis as always, David.

Here are three things missing:

1. Focus.

Many start ups lack it. Many VCs/boards cause the lack of focus, unfortunately. But great, value-adding VCs always bring it.

2. Mentorship

Most of the funded companies are led by inexperienced managers who need mentors to lead them through the rough-and-tumble of business building. A great VC spends a lot of time helping the leadership mature. (And does more than the coaching that's mentioned above.)

3. Leadership

Great VCs don't abdicate leadership to the executive team. Yes, they have to find the balance between meddling or micromanaging and strong guidance. But we've all seen VCs who seem to think just doing the introduction work is enough.

eric-ver-ploeg.myopenid.com

Great summary of the value-add functional roles that a good venture investor can fill. I think there are two informational overlays that cut across the functions you list that help good venture investors keep their actions in the "constructively involved" category:

(1) Recognizing where the information asymmetry lies. When it comes to the specifics of a particular business, the entrepreneur who has been working it 80 hours a week is always going to know more than the venture investor who can spend at most a half day a week. There are a few functional areas where the information asymmetry balance tips to the venture investor, such as some of the areas you mentioned: financing, PR (sometimes), and network (sometimes). In all other areas, the good venture investor's role should be one of asking the kind of questions that help the management team see the forest for the trees.

(2) Recognizing the difference between management and governance. The role of a board member (I'm assuming that the venture investor is involved enough that they've taken a board seat) is one of corporate governance. This serious and important role is about granting authority and verifying performance, but it DOES NOT include micro-managing decisions within the company. It can be hard for those who have had startup operating roles to make this distinction, but when we do, it is almost always a mistake.

Forextraderforums

What type of degree do I need to pursue to become a real estate investor?

Gucci handbags

Gucci is a famous brand in the world , and is originate from Italy and create by Guccio Gucci. He is a famous designer. His products are popular with most of people . His design are originality and natural. Gucci bags and Gucci outlet are also popular and elegant. You can search for our website : https://www.gucciusaoutlet.com.

Nike Shox Navina

Must have the man of genius, and humans shall independently profound grasp a truth that human to have the genius of man becomes the torch, but don't let them give up real mission.Do you think so?

seks izle

Seems like most of these fall into the broad category of promotion...does the VC actively promote the startup to other VCs, to potential hires, to potential partners, acquirers, etc.

UGG Boots

this is a good blog,I like.

cheap air max

What a great blog!There have a chance that we can have an furthur exchanges and cooperation.I will always pay attention to your blog.you shouldd update it on time.I support you forever.

air jordans

yes. it is very good.

ryan

no, all investors should add value!

agent taobao

Um...like the style of your writing.*_*

Jeremy Scott

I also think so,Do you think the best in the webnet too? there were a good web for, you don't like, Never mind, much more:if you like, you can see

Brand Bikinis

Never done in the article comments, this is my first network comments, appreciate you sharing. Very good article

Christian Louboutin Outlet

Good ! very good!

Asics Tiger

I remember a few years ago when you could get a steal on a used car. Pretty amazing how fast the market changes, thanks for the info.

MBT Shoes

Any pictures? Would love a house with that much land...oh and I've just noticed its quite an old post. Is it still available?

Nike Free

I come here first time. You can share some of your article, I'm like you write something, really very good!

search engine optimization india

The ideas are strongly pointed out and clearly emphasized. Thanks for sharing your thoughts and ideas on this one.

Dunk SB

Thank you for the article, I saw after the enlightened, my idea like you, just not good at expression

New Era Caps

This article is very good. I'd like it.

Christian Louboutin Outlet

Really appreciate this post. It’s hard to sort the good from the bad sometimes, but I think you’ve nailed it!

mbt online

That was my thought,too.

mbt shoes

Good stuff as per usual, thanks. I do hope this kind of thing gets more exposure.

soccer Jersey

Zenphoto is an online gallery solution that just makes sense. Unlike bloated software loaded with unnecessary features, zenphoto just shows your photos, simply and easily.

Lacoste Shoes

www.lacostesupply.com/ The truth shall make you free.

GHD Iron

Good stuff as per usual, thanks. I do hope this kind of thing gets more exposure.

zoom lebron shoes

In light of that, I thought it would be worth sharing some thoughts on the sorts of things that venture investors can do to help their portfolio companies be successful

Cheap Onitsuka Tiger

Only an injunction)0f the lessening Can avoid that problem. Defendant: 1)Our name accurately reflected the first BaFfle of the owner of the store.andwe used the word“secret”as a kind of inside ioke because we wanted to keep the new business a secret from a former boss at a competing store.

Vibram Five Fingers


The nomination of the winner depends on the capability and spirit of the personality to finish the race.I like the post very much as it contain informative in knowledge.I like pics of Chelsea shares of the beauty of running in Madison, Wisconsin.I want to congratulate the winner for the nomination race.I want to know suggestion from others.

Air Max Shoes


i come here first time. You can share some of your article, I'm like you write something, really very good! I will continue to focus on

1045 steel


I loved the editorial.It is very interesting.Thank you for the information

Lebron James Shoes

I think this is one of the most important ways in which VCs can be helpful to their portfolio companies.

Ken Griffey Jr Shoes

Thanks for informative and helpful post, obviously in your blog everything is good.If you post informative comments on blogs there is always the chance that actual humans will click through.

Christian Louboutin Pumps

i agree with your views from here.

Michael McDonald

I would strongly recommend using Eye In The Sky Screener as a means to find great trading opportunities in the stock market.

UGG Clearance

We have 3317said something about those institutions in which the linen supply

MBT Trainers

Thank you for sharing. Very happy to see your article, I very much to like and agree with your point of view. Have a good time.

mbt shoes online

Thanks very much, I have learned a lot from your post. Well done, really! also have a good train at https://www.honest123.com/

mbt shoes online

Thanks very much, I have learned a lot from your post. That was my thought,too. Well done, really! also have a good train at https://www.honest123.com/

air max shoes

Article is very nicely written and I am happy to find so many useful information here in the post, thanks for sharing it here. I hope you will adding more.

air max shoes

I am not much into reading, but somehow I got to read nice information on your site. Simple to understand and helpful. We will look forward for your future updates.Thanks!

Air Max Shoes

You can share some of your article, I'm like you write something, really very good! I will continue to focus on.

Generic Viagra

Der er mange person, der søger om, at nu vil de finde nok ressourcer ved din postThis er virkelig interessant, Du er en meget dygtig blogger. Jeg har tilmeldt dit feed og ser frem til at søge mere af din vidunderlige indlæg. Desuden har jeg delt dit websted i mit sociale netværk!

Cheap Beats By Dre

Desuden har jeg delt dit websted i mit sociale netværk!

antalya böcek ilaçlama

antalya ev ilaçlama

ken griffey shoes

I have never read such a wonderful article and I am coming back tomorrow to continue reading.

Herve Leger Dress

It took us ages to get dressed - we got changed about 3 times before finally settling on a bit of sparkle...

Ugg Boots Outlet

this is really good for me, thanks for ur work,thanks again

Moncler Outlet

it's funny to read,thanks for ur sharing

oakleysunglasses

That’s some inspirational information. Thank you for all the commitment to offer such valuable material https://www.oakleysunglassescheapsale.net/ here.

north face outlet store


Article is very nicely written and I am happy to find so many useful information here in the post, thanks for sharing it here. I hope you will adding more.

cheap handbags online

I recieved an email of some pictures of some really neat looking cofee art in vancouver. I wanted to know where in vancouver I could see it being done the email didnt say where the location of the restuarant was.

handbags online

I recieved an email of some pictures of some really neat looking cofee art in vancouver. I wanted to know where in vancouver I could see it being done the email didnt say where the location of the restuarant was.

oilseed press

I love the way you blog. I included it to my favorites blog site list and will also be checking quickly.

beats by dre store

to know where in vancouver I could see it being done the email didnt

north face outlet store

I am really enjoying reading your well written articles. It looks like you spend a lot of effort and time on your blog. You can make a great progress if you try your best.

oil press

I actually don't understand the video. if there is a subtitle then that would be better.

nike dunk heels

Hello I just wanted to leave a comment to say that I enjoy your blog. Looking at the number of comments, I see others feel the same way!https://www.takesneaker.com/

Adidas Shoes

Deliberate slowly,execute promptly
k

Air Jordan Heels

sDon't count your chickens before they are hatched.

Wood Pellet Mill

Narrow the current industry distribution channels, products move little by little.

tod's shoes

Hello I just wanted to leave a comment to say that I enjoy your blog. Looking at the number of comments, I see others feel the same way! Keep up the good work Silver Price Per Gram CQM
https://tods-shop.com/
https://monsterdrdre1979.com/
https://www.mbtwhy.com/
https://www.uggsdesign.com/
https://www.cheapmonclerpoloshirt2.com/
https://www.cheapniekdunk.org/

Jadeite

There are a number of very nice points made here. Generally, I’m not really keen on information sites. then again, once in a while all of us should take notice. Inspiring, I am thankful to you.

Puma Outlet

Iran's actions may very well be a response to a perceived threat from the USA, but do you know how moronic you sound when say things like "comfortably settling" and "no intention of leaving"? Do some homework, bergamo, before trying to comment intelligently on world affairs.

2011 Griffey Shoes

Don't cry because it is over,smile because it happened.
s

Ed Hardy

No man or woman is worth your tears,and the one who is ,won't make you cry.
l

Air Max 95

To the world you may be one person,but to one person you may be the world.
jk

ghd

I just like reading all the blogs.

Nike Dunk

To the world you may be one person,but to one person you may be the world.
c

Dunk SB

Never frown,even when you are sad,because you never know who is falling in love with your smile.
gt

rolex daytona

Vallarino said that once he learned about Varela's dismissal he spoke with Martinelli to voice his support for Varela.Vallarino, a former banker and businessman, has maintained Panama's economy vigorous during his 26-month tenure, with three international rating agencies putting the country's credit rating on a positive outlook.Martinelli has repeatedly asked Vallarino to remain as finance minister until he finds a replacement to ensure the healthy development of the Central American country's economy, which is projected to grow 9 percent this year.

Adidas Shoes

each and every small rodent loves to listen to himself sing.

robe de soirée

I appreciate time and effort you put in your blog.

Aluminum Wallet

Ok so I'm guessing you mean the next recipe is the pie that Florida is known for????? I'm sooooo excited for that one!!!

tool steel


Resources like the one you mentioned here will be very useful for me!

monster beats

The best kind of friend is the kind you can sit on a porch swing with,never say a word,and then walk away feeling like it was the best conversation you've ever had.chong https://www.uggsauto.com/
and https://www.gianmarcosandals.com/

gucci outlet

Ok so I'm guessing you mean the next recipe is the pie that Florida is known for????? I'm sooooo excited for that one!!!

cheap supras

Its interesting. I would like to know more about this…I really wanted to know how this works can you please help me out…….Thanks for sharing. HH
https://www.cheapsupra3.org/
https://www.newmannow.com/
https://www.newmannows.com/

Herve Leger

The failures and reverses which await men - and one after another sadden the brow of youth - add a dignity to the prospect of human life, which no Arcadian success would do
h

Asics Onitsuka

once the fox preaches, then consider treatment of your geese.

Christian Louboutin

If a dude empties his purse into his mind , no dude can consider it besides him , an cost in know-how frequently pays probably the most effective attention .

Alexander McQueen Belt

t too much value, if you know what I mean), after attending the t

Herve Leger Bandage

One may overcome a thousand men in battle, but he who conquers himself is the greatest victor.(Nehru)

Treadmill for sale

The challenge of course is how to objectively assess these traits in advance... I guess the answer is to simply talk to previous portfolio company founders and run through each one ("How did VC X help you raise a follow on round"..."What sort of recruiting did he/she do" etc.)

Seems like most of these fall into the broad category of promotion...does the VC actively promote the startup to other VCs, to potential hires, to potential partners, acquirers, etc.

best watches replica

Actor Anil Kapoor has teamed up with CNN for Trapped By Tradition; A CNN Freedom Project Documentary, about human trafficking, and says education is the prime solution for the problem.

cheap jerseys

does the VC actively promote the startup to other VCs solution for the problem.?

rosetta stone

VCs solution for the problem.?

ugg discount

I love and am used to keeping a distance with those changed things. Only in this way can I know what will not be abandoned by time. For example, when you love someone, changes are all around. Then I step backward and watching it silently, then I see the true feelings.

ugg

Borse Gucci un nome ben noto a tutti gli europei.Benvenuto al Gucci Sito Ufficiale!Negozio Borsa di Gucci spedizione gratuita.Nuovi prodotti di Borse Gucci 2011 https://www.gucciborseit.com ,Borsa Tracolla Gucci https://www.gucciborseit.com .Ampia selezione di Gucci Borse https://www.gucciborseit.com , 50% sconto.Garantiaualità di 100%.https://www.gucciborseit.com

ugg

Bottes UGG https://www.2011uggbottes.com/,dernière mode de nos jours! Vu lourdes et de style laid, les UGG Pas Cher https://www.2011uggbottes.com/ n’enchante du premier coup personne. Pourtant, grace aux stars, elles deviennent tout de suite à la mode en Europe, aux Etats-Unis, au Japon.même dans le monde entier. En faite, les Chaussures UGG https://www.2011uggbottes.com/ugg-chaussures-c-52.html doivent son origine aux chaudes bottes pour les surfers australiens après surf. Et après, elles sont exportées aux Etats-Unis, s’y répandent progressivement. Actuellement, comme dit le président de UGG France https://www.2011uggbottes.com/, ce sont de bonnes chaussures une fois portées, vous ne voulez plus vous déchausser! Enfin, l’originalité, la crédibilité et la confort de luxe.2011 UGG Bottes https://www.2011uggbottes.com/2011-ugg-bottes-c-47.html, une légende de nos jour!

cheap jerseys from china

In light of that, I thought it would be worth sharing some thoughts on the sorts of things that venture investors can do to help their portfolio companies be successful. Few investors are able to provide value on all these fronts. But great VCs will help where they can be helpful and staying out of the way the rest of the time.

supra vaider

Beautiful!!! You truly have an eye for colour.

supra vaider

It's so nice to have you do all of the research for us. It makes our decision making so much easier!! Thanks.

muska supra

This is such a beautiful image! Is that what you call Digital Painting? It looks stunning.

Rolex Daytona

If Enterprise is afoot, wealth accumulates whatever may be happening to Thrift; and if Enterprise is asleep, wealth decays, whatever Thrift may be doing.
Replica Rolex
Rolex Daytona
Replica Omega

radii supra shoes

I follow you VIA GFC and I love your blog!

manolo blahnik

So cute! I already like you on FB and also get your posts on Google Reader. :)

cheap jordan 11

Thanks for sharing. This website is to I too have to help. Very good.

Buy Nike Free run

I really like them

The comments to this entry are closed.