Revenue-Based Financing in VC: A Study on Playing Averages Over Home Runs (Publication)
Revenue-based financing allows an entrepreneur to repay an investment over time, to retake ownership of their business, and give a capped return to investors. With founders increasingly rejecting the scale-at-all-costs mentality, this article investigates the math of revenue-based investing and whether in VC it is possible to play averages over home runs.
Should You Go It Alone with a Single-person Startup? (Publication)
Popular rhetoric states that you need a team to found a startup. But what if you don’t have the desire or the right co-founders to start a new venture in a team? Contrary to popular belief, there are many successful solo ventures. This guide presents some tactics for solo entrepreneurs to follow when starting a solo venture.
Do Economic Moats Still Matter? (Publication)
Companies, like castles, need a line of defense to repel the invaders' advances. Economic moats, taking a cue from their watery namesakes, are long-term and sustainable competitive advantages that protect others from seizing market share. But on the flipside, are they actually just lazy, passive strategies that shun innovation?
Exploring Evergreen Funds with a VC Investor Who Raised One (Publication)
VC and PE fund structures are traditionally raised in the closed-ended manner, through limited partnerships with end dates. A less common alternative to this is an open-ended/evergreen fund, an ongoing structure that continues indefinitely. In this article we discuss the nuances of open-ended funds with a GP from B37 Ventures, who raised and operates one.
ICOs, Exotics and Platforms - An Insider’s Perspective on the Future of Venture Capital (Publication)
2017 saw a number of issues arise in the VC industry and it may be approaching a watershed regarding its relevance.
This article looks into the root causes of the industry’s problems and why they have come to light. VCs can go through a pivot of their own to retain a seat at the table, with big data, exotic funds and platforms offering a path forward.
Fintech and Banks: How Can the Banking Industry Respond to the Threat of Disruption? (Publication)
Fintech attention tends to focus on startups and their efforts to unbundle the financial service industry’s suite of services. But how are banks responding to this disruptive threat? Despite their wealth, talent, and rich history of innovation, they have been sluggish to respond to the upstart movement.
This article suggest four ways banks can change their tact and respond better to fintech.
Great Recent Examples of Competitive Strategy Successes (Publication)
Competitive strategy frameworks are widely known and mainstays of university curricula, despite being almost 40 years old. We often hear the stories of Walmart and Southwest Airlines, but what modern examples are there? In this article we use Michael Porter’s activity positioning framework to show successful applications of competitive strategy from modern digital companies.
TAM Methodology: An Explanation and Example of Total Addressable Market Analysis (Publication)
Total Addressable Market (TAM) sizing exercises have become very popular for assessing the potential of a business. TAM is, however, often miscalculated and misinterpreted. In this article, we will look at how to calculate it and its derivative subset waypoints of SAM and SOM. A working example will also be demonstrated for WeWork.
A Deep Dive into Elon Musk’s Investments: The Makings of a Billionaire (Publication)
Everyone is familiar with Elon Musk the Entrepreneur, but what about Musk the Investor? In this article, we will look at how Musk has funded his ventures and managed his personal angel investments over his career, clever tactics that he has applied, and lessons learned from his experiences.
Three Core Principles of Venture Capital Portfolio Strategy (Publication)
Many newcomers to venture capital fail to appreciate some of the nuances that distinguishes venture investing from traditional forms of financial investing. This article delves into three areas in particular that new venture investors should look to understand.
Term Sheet Templates - Clauses to Look Out For During Negotiation (Publication)
Despite the large increase in resources aimed at helping founders navigate the fundraising process, many still struggle when it comes to comprehending certain term sheet clauses.
Such clauses can lead to founders losing control of their company or payout structures upon exit down the road. This post breaks down the term sheet's trickiest clauses and the implications thereof.