Optionality in venture funds
postcardsfromistanbul.substack.com
Optionality in venture funds
Unspoken Question #1. “Do I think this will work for me?” This is a head thing. Investors need to see how your startup fits with the other companies in their portfolios. They also need to know they can bring value to the table beyond just money.
Judy Robinett • Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
But I thought a better way of thinking about how we manage our portfolios is to think about it as a funnel. If we do 36–40 deals in a Seed Fund, somewhere between 25–40% would likely see big up-rounds within the first 12–24 months. This translates to about 12–15 investments.
Both Sides of the Table • What Does the Post Crash VC Market Look Like?
