VC Secret Decoder Ring

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September 21, 2018

VC Secret Decoder Ring

Marcy Swenson

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Calibrate

September 21, 2018
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Transcript

  1. VC DECODER RING VC Secret Decoder Ring

  2. GROWING YOUR HAPPINESS

  3. 1. VC secret levers drive many decisions 2. what is

    required for next fundraise? 3. how will your company exit? 4. insider info is powerful & dangerous VC DECODER RING
  4. 1. VC secret levers drive many decisions GROWING YOUR HAPPINESS

  5. GROWING YOUR HAPPINESS VCs Promise *their* investors 12% yearly invested

    over 10+ years VC DECODER RING 1.12^10 = 3.10 12% annual return fund length 3x return
  6. GROWING YOUR HAPPINESS $100M 10 year fund must return $300M

    (3x) for the VC to raise another fund from LPs VC DECODER RING
  7. GROWING YOUR HAPPINESS Startup Outcomes dead or zombie: 50% acquisition:

    45% IPO: 5% VC DECODER RING
  8. GROWING YOUR HAPPINESS given that 50% fail the other 50%

    have to return $300M+ VC DECODER RING
  9. GROWING YOUR HAPPINESS VC DECODER RING >3x 5% 2-3x 10%

    1-2x 35% < 1x 50% VC Fund Returns
  10. GROWING YOUR HAPPINESS VC job: raise money invest in companies

    push CEOs to grow/exit pay investors back at least 3x {repeat} VC DECODER RING
  11. GROWING YOUR HAPPINESS CEO job: vision & strategy great team

    enough cash VC DECODER RING
  12. GROWING YOUR HAPPINESS Investment Stages: angel / F&F Seed A

    B C, D, … IPO or Acquisition VC DECODER RING
  13. GROWING YOUR HAPPINESS CEO under crazy pressure to grow VC

    DECODER RING
  14. 2. What is required for next fundraise? GROWING YOUR HAPPINESS

  15. GROWING YOUR HAPPINESS Why is my CEO asking for more

    & faster revenue & more users? VC DECODER RING
  16. GROWING YOUR HAPPINESS Why is my CEO asking me to

    ignore tech debt & hack together features? VC DECODER RING
  17. GROWING YOUR HAPPINESS Why is my CEO asking me to

    cut costs *while* building more features? VC DECODER RING
  18. GROWING YOUR HAPPINESS Why is my CEO asking me to

    “make it social”? VC DECODER RING
  19. GROWING YOUR HAPPINESS Why am I spending cycles on an

    integration with this lame partner? VC DECODER RING
  20. GROWING YOUR HAPPINESS How do I explain all this to

    MY team? VC DECODER RING
  21. 3. How will your company exit? GROWING YOUR HAPPINESS

  22. GROWING YOUR HAPPINESS possible exits… dead or zombie: 50% acquisition:

    45% IPO: 5% VC DECODER RING
  23. GROWING YOUR HAPPINESS Does partner XYZ have “strategic value”? VC

    DECODER RING
  24. GROWING YOUR HAPPINESS Diligence looks like: • meetings w/key staff

    • senior people OOO • requests for tech docs • hiring freeze • no decisions VC DECODER RING
  25. 4. Insider info is powerful & dangerous GROWING YOUR HAPPINESS

  26. GROWING YOUR HAPPINESS

  27. GROWING YOUR HAPPINESS