Our last post provided an overview of the one metric to rule them all (Alpha), outlined why it’s the unifying metric for VC firms, and discussed the four activities to deliver above-average returns for investors.
Shifting gears, I’m often asked what we’ve learned so far as fund managers.
While our first two funds are already performing strongly, we’re students of this industry and learning more each and every day.
What are the key lessons learned so far on our journey? Over the coming weeks, I will expand on each of these:
- The three things we absolutely have to see before investing
- Forget about what I just said. It’s all about the founder
- The key to outsized returns: being right and contrarian
- Underwriting 50x returns: An introduction to the Power Law
- Entry valuations matter
- Graduation rates: the math has to work
- Maintaining as much ownership as possible (Feed the horses; starve the dogs)
- Embracing failure (revisiting the Power Law)
- You’ve invested. Now the work begins (how we help energize growth)
- Leveraging your LP (investor) base
- (bonus lesson) Not all companies are great venture candidates
Join us over the coming weeks as we break down each of these topics separately.
Join us on the journey,
Steve Greenfield
