Venture Capital: Recent Episodes
Jon Bradshaw, Peter Harris
A podcast about venture capital, and what is happening each week. We discuss who is getting funded. Why specific companies were funded and much more relating to who the next big unicorn will be.
In today's episode Jon and Peter talk about the effect of VC Collective on VC Landscape
- What is a VC collective?
- Examples:
- Curql Collective - Met Nick Evens at Fintech MeetUp
- $90 million in capital deployed
- Reach over 100 Credit Unions, Credit Union Service Organizations, and League limited partners
- Black Dragon Capital with Benson Porter & Louis Hernandez Jr.
- $80M USD assets under current management
- Partners come from -
- Former CEO of Credit Union National Association
- Former CEO of Boeing Employees’ Credit Union
- Black Dragon is launching a credit union and CUSO (credit union service organization - credit union owned) LP fund….a credit union LP fund
- Chase and Wells Fargo have their own venture arms. How are collectives formed by smaller banks and credit unions changing the VC space?
- Curql Collective - Met Nick Evens at Fintech MeetUp
- If VC Collectives have strong ties, how does this affect traditional VCs?
- Is co-investing between traditional VCs and collectives important?
- What industries are forming their own VC Collectives?
- Sources
- https://www.curql.com/
- https://www.prnewswire.com/news-releases/black-dragon-capital-names-benson-porter-former-ceo-of-becu-and-first-tech-credit-union-as-executive-advisor-to-focus-on-technology-investing-that-benefits-credit-unions-301750829.html
- https://www.americanbanker.com/list/6-venture-funds-connecting-banks-and-credit-unions-with-fintechs
Whats is your take? We read and respond to all of our comments and messages on Instagram, and LinkedIn. Come find us and join the conversation.
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Youtube: https://youtu.be/Hy9DsuFzTH4
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
In today's episode Jon and Peter talk about what the current downturn of Tiger Global
- Early March it came out that Tiger global investment portfolio Venture portfolio is down 33%
- Even before that Tiger Global has become a laughing stock, or the poster child of venture excess
- Did they make a mistake? Are they in trouble? Stripe’s recent $6.5B investment marks them down 50%
- What is Tiger Global?
- An investment firm focused on “public and private companies in the global Internet, software, consumer, and financial technology industries.”
- $58B under management (September 2022)
- What is their unique approach?
- Known for being extremely aggressive
- “Annoint” winners by dumping cash on the market leader
- What are their popular investments?
- Coinbase
- Flipkart
- Spotify
- Stripe
- Peter, why did you want to cover this?
- Sources
- https://en.wikipedia.org/wiki/Tiger_Global_Management
- https://www.tigerglobal.com/
Whats is your take? We read and respond to all of our comments and messages on Instagram, LinkedIn. Come find us and join the conversation.
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Youtube: https://youtu.be/Hy9DsuFzTH4
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
Do you want to know how to start your own fund? In this episode, Peter and Jon talk about their own experiences as first-time fund managers.
Join us on this podcast to see what we think!
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Youtube: https://youtu.be/Hy9DsuFzTH4
Follow University Growth Fund
Website: https://www.ugrowthfund.com/
LinkedIn: https://www.linkedin.com/company/university-growth-fund/
Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Youtube: https://youtu.be/spRuy517if0
What is generative tech? Well, it's the next thing happening in VC!
Some of the most significant changes in venture capital occurred over the last 6 months.
AI has allowed us to create high-quality, cheap, and Fast AI models to create images, video, code, music, and other types of models.
This is what is called Generative AI.
Join us on this podcast to see what we think!
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Youtube: https://youtu.be/Hy9DsuFzTH4
Follow University Growth Fund
Website: https://www.ugrowthfund.com/
LinkedIn: https://www.linkedin.com/company/university-growth-fund/
Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Youtube: https://youtu.be/spRuy517if0
We cover what FTX's crash mean for Venture Capital and specifically for Crypto Startups.
Jake Zeller and Jonathan Swanson launched a new fund, somewhat unique, https://powerset.co/.
Their thesis is that founders are better investors than VCs.
From their site they say, "Based on our experience working with hundreds of top founders and VCs, we have reason to believe that a certain cohort of founders can be some of the best investors on the planet, both in terms of helpfulness to startups and returns they’ll generate."
The idea is successful entrepreneurs know other successful entrepreneurs.
Join us on this podcast to see what we think!
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Youtube: https://youtu.be/Hy9DsuFzTH4
Follow University Growth Fund
Website: https://www.ugrowthfund.com/
LinkedIn: https://www.linkedin.com/company/university-growth-fund/
Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Youtube: https://youtu.be/spRuy517if0
We got a question from one of our listeners about how important it is for VCs to build their online presence.
Like they say- if you didn't post about it online, did it really happen? Does it apply to VCs too?
Are VCs now the "new" influencers?
Is it the fund that needs a brand or the individual partners need to create visibility/ credibility for themselves?
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Youtube: https://youtu.be/Hy9DsuFzTH4
Follow University Growth Fund
Website: https://www.ugrowthfund.com/
LinkedIn: https://www.linkedin.com/company/university-growth-fund/
Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Youtube: https://youtu.be/spRuy517if0
In this episode, we discuss if Venture Capitalists are evil. We discuss why entrepreneurs feel like VCs are evil.
And please forgive us for the audio quality. Jon forgot to turn the recording device on for the microphones.
Peter HarrisUniversity Growth Fund: https://www.ugrowthfund.com/
Instagram: https://instagram.com/shodanpete?igshid=YmMyMTA2M2Y=
Twitter: https://twitter.com/thevcstudent
YouTube: https://youtube.com/channel/UCAHrQUxcm_Oa1t3emwttpAQ
Jon BradshawInstagram: https://www.instagram.com/mrjonbradshaw/
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Much has changed in the last few years, and in 2022 we want do know if profitability still matters to VCs.
Over the past few years, VCs have pounded on the drum of growth at almost any cost. Startups have been flooded with billions of dollars to fuel growth.
Now in light of the current recession and financial situation join us as we discuss if and how this approach has changed.
Venture Capital PodcastWebsite: www.VentureCapital.fm
Apple Podcasts: https://podcasts.apple.com/us/podcast/venture-capital/id1575351789
Spotify: https://open.spotify.com/show/7BQimY8NJ6cr617lqtRr7N?si=ftylo2qHQiCgmT9dfloD_g
YouTube: https://youtube.com/channel/UCtPaub_8VrJ8gWj5RXcdYkw
Instagram: https://instagram.com/venturecapitalfm?igshid=YmMyMTA2M2Y=
Peter HarrisUniversity Growth Fund: https://www.ugrowthfund.com/
Instagram: https://instagram.com/shodanpete?igshid=YmMyMTA2M2Y=
Twitter: https://twitter.com/thevcstudent
YouTube: https://youtube.com/channel/UCAHrQUxcm_Oa1t3emwttpAQ
Jon BradshawInstagram: https://www.instagram.com/mrjonbradshaw/
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Should you take money from a corporate venture arm?
Here are some quick Pros and Cons of doing so:
Pros:
- They can be very strategic in making industry connections (especially with other companies they have invested in
- They can often become a customer themselves
- Bring technical expertise and resources unavailable to early-stage venture companies
Cons:
- Often have conflicting mandates, invest for return and invest in finding acquisitions
- Due to incentives many of the partners at CVC’s leave (which is your internal champion)
- At times there are inferior terms (exclusivity on acquisitions, Right of first refusal, and in the worst case invest to stamp out competition).
- While they could become customers, CVCs are often on an island and don’t speak for the company in becoming a customer
Peter and Jon share if they feel- "Utah is better at sales driven SaaS business but not so great when it comes to product led growth SaaS businesses"
While Jon personally takes offence, Peter has his reasons to believe in the statement.
Startups like Scan which didn't find any investors in Utah were the biggest buzz news once Snapchat showed interest.
Have Utah product businesses found better takers outside of Utah?
Or are things changing?
Share what do you think on our Instagram/ LinkedIn/ Youtube page!
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Youtube: https://youtu.be/Hy9DsuFzTH4
Follow University Growth Fund
Website: https://www.ugrowthfund.com/
LinkedIn: https://www.linkedin.com/company/university-growth-fund/
Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Youtube: https://youtu.be/spRuy517if0
In this episode, we discuss a LinkedIn post from Travis Ashby. He talks about one of his friends, a startup CMO, that was fired by their VCs just "weeks" before his vesting cliff happened.
Here's the link to the post: https://www.linkedin.com/posts/travisashby_letsdobetter-peoplefirst-culturematters-activity-6970740998289195008-_Co-
Peter and Jon share their thoughts on why this happened, how it can be prevented, and what can be learned from this situation.
Venture Capital PodcastWebsite: www.VentureCapital.fm
Apple Podcasts: https://podcasts.apple.com/us/podcast/venture-capital/id1575351789
Spotify: https://open.spotify.com/show/7BQimY8NJ6cr617lqtRr7N?si=ftylo2qHQiCgmT9dfloD_g
YouTube: https://youtube.com/channel/UCtPaub_8VrJ8gWj5RXcdYkw
Instagram: https://instagram.com/venturecapitalfm?igshid=YmMyMTA2M2Y=
Peter HarrisUniversity Growth Fund: https://www.ugrowthfund.com/
Instagram: https://instagram.com/shodanpete?igshid=YmMyMTA2M2Y=
Twitter: https://twitter.com/thevcstudent
YouTube: https://youtube.com/channel/UCAHrQUxcm_Oa1t3emwttpAQ
Jon BradshawInstagram: https://www.instagram.com/mrjonbradshaw/
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Have you ever invested in a friend's business? What happened?
On this episode, we discuss the pro's and con's of supporting your friends.
Disclaimer: This is for educational purposes only. Always consult proper legal and financial advisors.
Venture Capital PodcastWebsite: www.VentureCapital.fm
Apple Podcasts: https://podcasts.apple.com/us/podcast/venture-capital/id1575351789
Spotify: https://open.spotify.com/show/7BQimY8NJ6cr617lqtRr7N?si=ftylo2qHQiCgmT9dfloD_g
YouTube: https://youtube.com/channel/UCtPaub_8VrJ8gWj5RXcdYkw
Instagram: https://instagram.com/venturecapitalfm?igshid=YmMyMTA2M2Y=
Peter HarrisUniversity Growth Fund: https://www.ugrowthfund.com/
Instagram: https://instagram.com/shodanpete?igshid=YmMyMTA2M2Y=
Twitter: https://twitter.com/thevcstudent
YouTube: https://youtube.com/channel/UCAHrQUxcm_Oa1t3emwttpAQ
Jon BradshawInstagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
How do you network with venture capitalists in 2022?
In this episode, we talk about unique networking ideas to connect with your ideal VC.
Peter and Jon discuss the extent to which people go to meet and work with VC's, such as booking a private jet.
How do you network with VC's besides waiting for them to come to you.
Venture Capital PodcastWebsite: www.VentureCapital.fm
Apple Podcasts: https://podcasts.apple.com/us/podcast/venture-capital/id1575351789
Spotify: https://open.spotify.com/show/7BQimY8NJ6cr617lqtRr7N?si=ftylo2qHQiCgmT9dfloD_g
YouTube: https://youtube.com/channel/UCtPaub_8VrJ8gWj5RXcdYkw
Instagram: https://instagram.com/venturecapitalfm?igshid=YmMyMTA2M2Y=
Peter HarrisUniversity Growth Fund: https://www.ugrowthfund.com/
Instagram: https://instagram.com/shodanpete?igshid=YmMyMTA2M2Y=
Twitter: https://twitter.com/thevcstudent
YouTube: https://youtube.com/channel/UCAHrQUxcm_Oa1t3emwttpAQ
Jon BradshawInstagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
We were recently asked by a friend what a startup CTO's salary should be for a company with little to no revenue.
Peter and Jon decided to ask their network what "fair" compensation would be. Please remember that most individuals were making a recommendation only on partial information.
We presented the following to each individual.
What are the current terms for a Startup CTO?
- He makes $200,000 with $50,000 in equity and other benefits at his current job
- He’s willing to take a salary of $150,000
- The startup just raised $1M from a “notable” VC
- No details on the $1M raise is known
- Revenue is $5,000 MRR or less
The startup is asking him to make an offer.
I told them to put it back on them, and for him to also ask about:
- Total shares outstanding
- Details on the current cap table
- Current price for common stock
Venture Capital Podcast
Website: www.VentureCapital.fm
Apple Podcasts: https://podcasts.apple.com/us/podcast/venture-capital/id1575351789
Spotify: https://open.spotify.com/show/7BQimY8NJ6cr617lqtRr7N?si=ftylo2qHQiCgmT9dfloD_g
YouTube: https://youtube.com/channel/UCtPaub_8VrJ8gWj5RXcdYkw
Instagram: https://instagram.com/venturecapitalfm?igshid=YmMyMTA2M2Y=
Peter Harris
University Growth Fund: https://www.ugrowthfund.com/
Instagram: https://instagram.com/shodanpete?igshid=YmMyMTA2M2Y=
Twitter: https://twitter.com/thevcstudent
YouTube: https://youtube.com/channel/UCAHrQUxcm_Oa1t3emwttpAQ
Jon Bradshaw
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
In this episode, we talk about how you get the most out of your latest financing round.
Many startups are raising at much lower valuations than they did 6, 12, or 18+ months ago.
Peter talks about the current market trends and how companies in a tight spot can get a better valuation.
Venture Capital Podcast
Website: www.VentureCapital.fm
Apple Podcasts: https://podcasts.apple.com/us/podcast/venture-capital/id1575351789
Spotify: https://open.spotify.com/show/7BQimY8NJ6cr617lqtRr7N?si=ftylo2qHQiCgmT9dfloD_g
YouTube: https://youtube.com/channel/UCtPaub_8VrJ8gWj5RXcdYkw
Instagram: https://instagram.com/venturecapitalfm?igshid=YmMyMTA2M2Y=
Peter Harris
University Growth Fund: https://www.ugrowthfund.com/
Instagram: https://instagram.com/shodanpete?igshid=YmMyMTA2M2Y=
Twitter: https://twitter.com/thevcstudent
YouTube: https://youtube.com/channel/UCAHrQUxcm_Oa1t3emwttpAQ
Jon Bradshaw
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Peter Harris provides a quick update on recent investments by the University Growth Fund.
Join us as Peter shares his analysis, thoughts, and strategies.
In today's episode, Peter and Jon answer questions such as:
- How much annual recurring revenue is needed to raise a Series A?
- How many users do you need to raise a Series A?
- Is $1,000,000 in revenue enough?
What are the current standards, and has the market changed historical benchmarks? Join us for the podcast to find out!
Some Points Covered in This Episode Include:
If you have heard anything about the Carried Interest Loophole Act, you know it's the biggest news in the last few days. What does it mean and what does it entail if it were to be passed.
The "carried interest loophole" allows hedge fund managers to tax their income at a lower rate than an ordinary salary.
Peter will weigh in both sides and discuss how fair is it.
Don't forget to tell us, where do you stand on it.
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Youtube: https://youtu.be/Hy9DsuFzTH4
Follow University Growth Fund
Website: https://www.ugrowthfund.com/
LinkedIn: https://www.linkedin.com/company/university-growth-fund/
Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Youtube: https://youtu.be/spRuy517if0
Have you ever wondered what Venture Capitalists think of Y Combinator companies/investments?
In 2022 the program has significantly changed. It went from accepting 10 startups with each class to 400 in a recent cohort.
Learn about the Pro's and Con's of the program from a venture capitalist that has funded YC companies.
Peter and I provide anonymous feedback to a first-time founder.
We talk about their revenue numbers, team size, and if this startup should attempt to raise venture capital.
VC rips apart a pitch deck for a very open and honest review.
Peter Harris from the University Growth Fund reviews the pitch deck for Appointment.com
In this episode learn what a later-stage VC actually thinks about a pitchdeck.
How to Start a Syndicate
In today’s episode we find how one gets into Venture Capital and deep dive into everything about a Syndicate.
Some Points Covered in This Episode Include:
- What is a syndicate, and how is it different from an SPV?
- What is the appeal of a syndicate?
- As an investor
- As a company
- As a manager
- How do syndicate managers/operators make money?
- Syndicates also charge carry - usually 20% in total. Carry is a cut of positive returns generated by the investment. Example: let's say you invest $1000 in a syndicate with 20% carry. If the investment returns $2000, the syndicate would earn $200 in carry. 20% * ($2000 - $1000).
- https://angel.co/syndicates/for-investors#requirements
- Who are the most common syndicate leaders?
- Jason Calcanis
- Uber
- Calm
- Dave Eisenberg
- Coinbase
- Warby Parker
- Tom Williams (from Apple)
- Layer 6
- Jason Calcanis
- How do you manage a syndicate?
- AngelList
- Assure
- Attorney/Accountant
- What does it cost to start a syndicate?
- AngeList charges a one-time fee of ~$8,000
- https://angel.co/syndicates/for-investors#requirements
- Hidden costs of finding investors
- What are the SEC/accreditation rules for starting one?
- Salary of $200k+
- Net worth of $1M+
- Work in industry
- https://help.venture.angel.co/hc/en-us/articles/360047682112-What-is-an-accredited-investor-
- Who should start a syndicate?
- Who should not start a syndicate?
- Areas of specialization:
- Geography
- Utah-based
- Industry based
- Alumni Syndicates
- AirBNB
- Geography
Let us know your thoughts on a Syndicate? How do you feel about them? What should we talk about next? Give us a follow and leave us feedback.
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Youtube: https://youtu.be/Hy9DsuFzTH4
Follow University Growth Fund
Website: https://www.ugrowthfund.com/
LinkedIn: https://www.linkedin.com/company/university-growth-fund/
Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Youtube: https://youtu.be/spRuy517if0
How is Data Science improving Venture Capital?
Jon asks Peter everything about data science. What data sources are they currently using? And how much will it disrupt the functioning of Venture Capital firms.
Some Lies/ Points Covered in This Episode Include:
- Would you say data science is changing things?
- What Data Sources are University Growth Fund are using at this point?
- For seed and early-stage firms, when data is almost non existent, will it be a barrier
- A venture capital deal pipeline has three key elements: sourcing, benchmarking and value-add. Can Data science help on all three fronts?
- What are some of the other challenges you foresee?
- It’s a very intuitive field, do you think backing it with numbers and data will give VCs clarity while making decisions or make them second guess their intuition on things that really matter- word of mouth, integrity, past personal or peer experiences.Things that data can’t support.
- Often, data from sources such as Twitter, LinkedIn, Pitchbook, Crunchbase, and AngelList are obtained and then pooled and organized. The organization and manipulation of third-party data can be time and labor-intensive. Pooled third-party data that is improved and arranged in a customized manner can eventually become proprietary in nature. Your thoughts?
- Once VC ventures become data backed, they will need to hire or re-organise teams that can collate and work with such data. How soon do you see that shift coming
PS- it may call for a different talent sourcing model and organizational structure, with resulting implications for the structuring of compensation and incentives.
- For example, the venture capital firm Social Capital has built an automated system to invest in startups without meeting them. Companies upload data about themselves, and if the firm’s algorithms score the companies well, the firm backs them with an investment. The process was designed to keep bias from entering the equation. By mid-2018, the firm had assessed over 5,000 startups and invested in 60. Most of the investments were in companies based outside the major venture capital markets of the Bay Area and New York, and many were based overseas. About 80% of the companies featured non-white founders and 30% featured female founders. Do you see them as outliers or can that be the upcoming trend?
Let us know your thoughts on data science/ AI changing the Venture capital? What should we talk about next? Give us a follow and leave us feedback.
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Youtube: https://youtu.be/Hy9DsuFzTH4
Follow University Growth Fund
Website: https://www.ugrowthfund.com/
LinkedIn: https://www.linkedin.com/company/university-growth-fund/
Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Youtube: https://youtu.be/spRuy517if0
Common Lies VCs Hear
Truth or optimism. VCs hear multiple people talk about their plans, their business and they toe the line of sometimes being overly optimistic that it could be a lie. Here is what not to say, or how to frame it differently next time.
Some Lies/ Points Covered in This Episode Include:
- Saying your market is a huge number/ some ridonculous billion $ industry, but the fact is you dont know whats the sub sector or specific part of the market you are targeting
- All we need is get 3% of the market
- Our contract with a “big company” is going to be signed ANYTIME NOW.But the truth is that the process is much longer. So over committing your investors is no good. Play low key when talking about accomplishments, and surprise with news
- There is no competition. No one else can do what we can do OR we have the first mover advantage
- They mis- estimate the sales plan. Give an unrealistic time period- 45-90 days of sales cycle
- My projection is conservative. Is it really?
Let us know what are the common lies you have heard? What should we talk about next? Give us a follow and leave us feedback.
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Youtube: https://youtu.be/Hy9DsuFzTH4
Follow University Growth Fund
Website: https://www.ugrowthfund.com/
LinkedIn: https://www.linkedin.com/company/university-growth-fund/
Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Youtube: https://youtu.be/spRuy517if0
Is Venture Capital Slowing Down?
A quick look at the sudden decline in the numbers. Looking at the numbers from Q4 and Q1 to analyse if there is a shift or worse a slow down coming. What do you think?
Questions Covered in This Episode Include:
- In Q1, 4,822 VC deals were closed totalling $70.7 billion, which was far below the $90 billion of VC investment in Q4 2021. Are you seeing the trend too?
- Why do you think that’s happening?
- Are q2 numbers going to be alarming?
- Looks seed funding actually saw a boost of 14% while late stage funding is down by 19%. Is there a telling sign of something? Why do you think that has happened
- The big reason for these numbers have been low activity on mega deals. Do you think people are getting averse to bigger risks
- Overall why do you think 2022 will be still a good year for the VC industry/ better than few years
- “The value of technology stocks began to decline in late 2021, a slide that continued into 2022, leaving many tech shops trading at a stiff discount to their recent valuation highs.”- Do you think VCs love for tech will shift
- How are these dwindling numbers going to change the VC ecosystem-
Let us know what you think about the shift? Do you predict a slow down too?. What should we talk about next? Give us a follow and leave us feedback.
Follow Peter Harris
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Follow University Growth Fund
Website: https://www.ugrowthfund.com/
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Youtube: https://youtu.be/spRuy517if0
Misunderstood Venture Capital Terms
If you don’t understand all the terms, and especially the ones that are part of your fundraising journey, it can cost you big bucks. In today’s episode we discuss such real life examples where real time mistakes were made.
Questions Covered in This Episode Include:
- What is Liquidation preference
- How are Participating Preferred different from Non Participating Preferred Stocks
- What terms work the best for you as an entrepreneur
- What is a clean term sheet and what are the benefits
- Understanding Anti- Dilution Clauses with another real life example
- What to choose when you have to decide between a higher valuation vs structure?
- Understanding Convertible Note vs SAFE
- What is a Standard Price Round
- What is the next inflection point for a business
Let us know the terms you had a hard time understanding, or still don't understand. What should we talk about next? Give us a follow and leave us feedback.
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Follow University Growth Fund
Website: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
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Twitter: https://twitter.com/mrjonbradshaw
How to Find a VC Mentor
Some of the most successful people attribute their success to their mentors. If you want to speed up your learning process, find one! But the question is not only - how to find a mentor but what kind of mentor should you seek.
Questions Covered in This Episode Include:
- How does an entrepreneur build his network
- Why is it important to find a mentor
- What kind of mentors should you seek
- How service plays an important role in finding a mentor
- Let's discuss some real life examples where it has benefited us
- How to find such opportunities
- How to reach out to them in the best possible way
- How to have asks that are easy to respond to
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Follow University Growth Fund
Website: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
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Twitter: https://twitter.com/mrjonbradshaw
How To Start a Venture Capital Fund
If you have ever wondered about starting a VC fund but felt overwhelmed. Jon speaks to Peter Harris who started a fund with his partner a couple of years ago. He breaks it down for us and shares his suggestions.
Questions Covered in This Episode Include:
- Peter, you and your partner started a fund 7 years ago. How did you do it?
- Where did you start?
- How much does it cost?
- How is it structured?
- What is the process of raising the fund?
- Can you consider taking a bank loan?
- Are you responsible for contributing?
- Can you start one if you are not rich? How crucial is having a network of rich friends and family?
- What happens if you don’t have rich friends?
- What is front loading and how can you use it?
- What are some things to keep in mind when forming a fund?
- Legal
- Cash flow considerations
- Ask why would they invest
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Follow University Growth Fund
Website: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
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Twitter: https://twitter.com/mrjonbradshaw
How do VCs Make Money?
Some of you might be intrigued to understand how a VC fund runs. How do they make their money? Peter breaks down all that in this episode and all clear out the air if VCs are rich.
Questions Covered in This Episode Include:
- Peter, everyone wants to know how VCs make money? ( Carried interest and management fee)
- How important is it to be rich to be a Venture Capitalist?
- What is the average salary of a VC? (Partner/Analyst)
- Sometimes people criticise venture capitalists because they get rich off of management fees and not fund performance
- Does deal performance that you lead affect individual compensation?
- Are they overpaid?
- How does the compensation structure affect how you make invest decisions
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Follow University Growth Fund
Website: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
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Twitter: https://twitter.com/mrjonbradshaw
In today's episode we focus on some of the important considerations that need to be made while finding a VC firm. Are they a good fit? Do they have my company's best interest at heart? How to distinguish a Good VC from a BAD one.
Questions Covered in This Episode Include:
- Peter, what stories have you personally seen where VCs did not act the best
- As an insider, what would you say are some of the red flags when it comes to a VC or a firm?
- As someone who is seeking funding, what are some of the things you should push for? Things you should expect at your end?
- If someone is looking for an early exit, is it always a red flag?
- How to know if a VC is wasting your time?
- What if they haven’t done a deal in 12+ months?
- Discussing what happened with Pelion/Weave
- What are the appropriate ways to vet a VC?
- Should I be concerned if they’ve invested in a similar deal?
- How do you know if they’ll steal or share my ideas with other founders?
- How to take into consideration if a VC didnt stand up for sexual wrongdoings, etc. in the past?
- What if the VC is planning to swap out the founder?
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Follow University Growth Fund
Website: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Getting Funded: Should a Startup Hire a Professional Fundraiser?
In today’s episode we discuss the pros and cons of having a professional fundraiser. Should you consider one and if yes, when is a good time to do so.
Questions Covered in This Episode Include:
- What is a professional fundraiser?
- How does one become one? What kind of education, background, social skills or experience is needed for it?
- How much do they charge?
- How do VC’s look at companies that use professional fundraisers? (Pros/Cons)
- When is it a good idea for a business to hire a professional fundraiser?
- What to keep in mind while hiring a Fundraising Consultant
- What are disadvantages of hiring one? Will people lose confidence in your capability
- Is there a particular time when they should be hired to maximise the impact like pre-seed etc?
- Should a startup ever consider making a professional fundraiser your CEO? Eg-David Bradford?
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Follow University Growth Fund
Website: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
How to Get and Keep a VC’s Attention
The trickiest part of reaching out to a VC, is keeping them interested. In this episode, we discuss best practices and share a few tips.
Questions Covered in This Episode Include:
- Should I focus my efforts on VC’s in my geographic area, or extend beyond my city/state?
- How accurate are online lists? What are some of the good ones?
- AngelList
- Forbes Midas list
- Crunchbase
- CB Insights
- PitchBook
- Others?
- How do you find a venture capitalist that is a good fit for you?- Size of business (Idea, Pre-Revenue, Etc.)/ Industry?
- What about VC’s that focus on particular industries like Blockchain, Healthcare, or SaaS? Or should we look to a generalist?
- What are your thoughts on professional fundraisers as a source?
- Is it worth my time to network and build relationships with local entrepreneurs to ultimately find a VC?
- What do VC super connectors look like?
- Does the process change if I’m a college student or a new entrepreneur?
- Does attending a bootcamp like NewChip, TechStars, or YCombinator help?
- Would first signing with a syndicate, like Jason Calcanis’, increase my odds?
- How helpful is it to attend events and virtual conferences with investors present?
Locally we have
- Silicon Slopes
- TechBuzz
Follow Peter Harris
Twitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Follow University Growth Fund
Website: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfund
Follow Jon Bradshaw
LinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
How to Find a Venture Capitalist (And Get Funded)Let’s talk about how do you find a venture capitalist for your startup.
Questions Covered in This Episode Include:
- What is your general advice for someone raising in 2022?
- Has the process changed in recent years?
- Will the process change in the coming years?
Now lets cover some common questions to make sure we’re addressing them
- Should I focus my efforts on VC’s in my geographic area, or extend beyond my city/state?
- How accurate are online lists? What arethe good ones?
- Angel List
- Forbes Midas list
- Crunchbase
- CB Inisghts
- PitchBook
- Others?
- How do you find a venture capitalist that is a good fit for you?
- Size of business (Idea, Pre-Revenue, Etc.)
- Industry
- What about VC’s that focus on particular industries like Blockchain, Healthcare, or SaaS? Or should we look to a generalist?
- What are your thoughts on professional fundraisers as a source?
- Is it worth my time to network and build relationships with local entrepreneurs to ultimately find a VC?
- What do VC super connectors look like?
- Does the process change if I’m a college student or a new entrepreneur?
- Does attending a boot camp like NewChip, TechStars, or YCombinator help?
- Would first signing with a syndicate, like Jason Calcanis’, increase my odds?
- How helpful is it to attend events and virtual conferences with investors present?
Follow Peter HarrisTwitter: https://twitter.com/thevcstudent
LinkedIn: https://www.linkedin.com/in/peterharris1
Instagram: https://instagram.com/shodanpete
Follow University Growth FundWebsite: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfund
Follow Jon BradshawLinkedIn: https://www.linkedin.com/in/mrbradshaw/
Instagram: https://www.instagram.com/mrjonbradshaw/
Twitter: https://twitter.com/mrjonbradshaw
Peter Harris, a Venture Capitalist, will talk about the primary differences between venture capital and private equity.
Peter Harris shares an update on what investments his firm, University Growth Fund, has made in the recent months of 2021.
A few years prior the University Growth Fund invested in Simplus.com.
Recently, Simplus sold to a larger company and Peter talks with one of his students about the outcome, and what they learned.
Looking to know what VC's think about different startups?
Join us as we review different deals that were recently funded, and we talk about the pros and cons of each.
Learn how to invest in a venture capital fund on today's podcast.
Peter talks about the risks, pros, and cons of investing in a fund.
As always, investing in a VC fund requires that you're an accredited investor.
Do you want to become a venture capitalist? If you're wondering how people land an analyst position at a VC firm just out of school then join us.
This podcast talks about how one becomes an associate at a venture capital firm.
Questions covered in this podcast include:
- What are the top skills?
- How do you develop those skills?
- Does school matter?
- Work experience
- The Top Internships
- The Top Extracurriculars
- The Top Skills
Bonus round
- What if I'm not good at finance?
- What if I didn't go to a top tier school
In this episode, Peter Harris answers common questions as to what the University Growth Fund (UGF) is.?
Peter Harris is a Founder of UGF, and co-invests along with other top-tier VC funds, such as Sequoia.
If you're wondering what types of deals UGF invests in, this podcast is for you.
Let's look at Seed and Series A deals. Let's look at what is interesting!
Peter Harris from the University Growth Fund and Jon Bradshaw review deals from this week that have been funded.
Learn what is hot. Find out what the winner is.
Welcome to the Venture Capital podcast.
Each week Peter Harris and Jon Bradshaw will analyze what's hot and happening in the land of VC.