Viewing entries in
Venture Capital

Green, Yellow, Red: What Signals Investors

What’s not often discussed is the soft side of a deal - the people, their behavior, and what it signals to potential investors. It’s impossible to do a good deal with bad people, which means the personalities, proclivities, and oddities play a large part in dealmaking. 

We’re fortunate to see a lot of opportunities, over 2500 just last year, and are constantly in conversation with executives. This affords us the ability to recognize patterns and develop specific criteria of behavior that provide insights into an owner’s motivations, and subsequent corporate culture. Here are some of the signals and how we interpret them. 

The False Choice Between VC and Bootstrapping

There seem to be two basic camps in startup land, each talking their own book. The venture capital industrial complex churns out dazzling tales of lottery ticket winners — errr — I mean hard-working well-deservers, in hopes to inspire “go big, or go home” risk taking that fuels their system. Camp Bootstrapper is a curious mix of contrarians, jilted former high-fliers, and lifestyle advocates who profess to have “seen the light” and view investors mostly as vampires with checkbooks, prowling for naive, fresh meat.

Newsflash: as you already intuitively know, neither is close to accurate. In fact, both advocations prescribe situationally-dependent advice, rife with confirmation bias, which is almost never helpful.

Read More on Medium >