VC Secret Decoder Ring

Marcy Swenson

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