View from Seed

AUGUST 17, 2021

A few weeks ago, we hosted a small dinner for a number of portfolio company founders, LP’s, and friends of the firm. This is the implied rate of return of a fund based on the value (mostly unrealized) of a portfolio. Part of the reason to do this was just to reconnect after a long time apart.

IRR 136

IRR Dilution Founder Portfolio 136

Austin Startup

MAY 11, 2017

645 Ventures 645 Ventures makes deeply-researched investments in institutional Seed to Series A rounds for exceptional companies who demonstrate stellar early results in the areas of market validation, product differentiation, team strength, and brand narrative. These sectors generally leverage the Internet or software in a fundamental way.

Private Equity 48

Private Equity Venture Capital Technical Review Seed Stage 48

Startup Professionals Musings

SEPTEMBER 9, 2010

VCs are finding that they don’t need the “large” funds of $100M to $500M to support a portfolio, if they focus on early-stage startups. Too many founders today face the conundrum that they need capital to get started, and even angels defer until after you have your product built, business model proven, and a real revenue stream.

Technical Review 215

Technical Review Early Stage Venture Capital Startup 215

View from Seed

JULY 19, 2019

And additionally, my partners and I use other, more differentiated, lenses like asking if a startup has an “ unfair distribution advantage.” JDCC stands for “Jaw-Dropping customer value through a Competition-Crushing business model.”. Asking “Is it JDCC?” Go (re)read that post.

Boston 149

Boston B2B Early Stage Portfolio 149

Version One Ventures

JULY 21, 2020

By 2016, we had begun to specialize into a thesis-driven firm , focusing on businesses with potentially large network effects built around people and/or data. . However, most businesses are looking for network effects, so they are less of a differentiator than they were a decade ago. Fast forward to today.

Founder 213

Founder Vertical Differentiation Portfolio 213

The Startup Magazine

FEBRUARY 19, 2019

When putting together a business plan, preparation is everything; working with a professional investor is a partnership. Spend some time understanding their preferences, any portfolio gaps and the right terminology to use in your plan. I’d recommend any business raises cash for at least 18 months. The opportunity.

Business Plan 93

Business Plan Technical Review Initial Public Offering Due Diligence 93

Version One Ventures

SEPTEMBER 8, 2023

In fact, a recommendation from a founder we passed on is one of our best performing portfolio companies! as our portfolio shows ). Being a generalist has taught me a lot about how founders succeed in different environments, markets, and business models…and these lessons are especially valuable when building in emerging areas.

Cofounder 182

Cofounder Portfolio Capital Gains Vertical 182

Startup Professionals Musings

AUGUST 31, 2014

In this variation on the free model, used by LinkedIn and many other Internet offerings, the basic services are free, but premium services are available for an additional fee. This also requires a huge investment to get to critical mass, and real work to differentiate and sell premium services to convert users to paying customers.

Revenue 287

Revenue Startup Business Model Retention 287

Startup Professionals Musings

MAY 23, 2013

In this variation on the free model, used by LinkedIn and many other Internet offerings, the basic services are free, but premium services are available for an additional fee. This also requires a huge investment to get to critical mass, and real work to differentiate and sell premium services to “convert” users to paying customers.

Product 290

Product Revenue Business Model Retention 290

abovethecrowd.com

OCTOBER 17, 2013

I immediately reached out to the founder and CEO, Katrina Lake , who had previously worked for another Benchmark portfolio company in the fashion space, Polyvore. Most importantly, I became convinced that Stitch Fix was one of those rare companies where the unique product advantage also contributes to a unique business model advantage.

eCommerce 62

eCommerce Technical Review North America San Francisco 62

Lightspeed Venture Partners

DECEMBER 14, 2012

It’s been over 10 years since Napster came on the scene to disrupt traditional music business models, sparking a wave of debate on the right mix of “free” vs “paid” content going forward with digital that has yet to be fully settled. In the shift to digital music, several models emerged, with the jury still out on the clear winner.

Business Model 159

Business Model Distribution Aggregator Channel 159

The Equity Kicker

JULY 8, 2019

Then from the mid 2000s, value add began moving beyond the partner to the firm as VCs began employing people who’s full time job was helping their portfolio. The most common strategies are to provide networking services and content to portfolio leaders so they can be more effective in their jobs. . Building platforms.

Portfolio 84

Portfolio LP Venture Capital Partner 84

Gust

AUGUST 24, 2014

In this variation on the free model, used by LinkedIn and many other Internet offerings, the basic services are free, but premium services are available for an additional fee. This also requires a huge investment to get to critical mass, and real work to differentiate and sell premium services to convert users to paying customers.

Revenue 184

Revenue Startup Retention Internet 184

Startup Professionals Musings

DECEMBER 26, 2010

In this variation on the free model, used by LinkedIn and many other Internet offerings, the basic services are free, but premium services are available for an additional fee. This also requires a huge investment to get to critical mass, and real work to differentiate and sell premium services to users locked-in as free.

Product 247

Product Startup Portfolio Revenue 247

Hippoland

AUGUST 16, 2018

Unless you have a differentiated angle / approach to the problem AND/OR significant traction, an investor won’t be able to understand why you stand out and why to back your horse instead of someone else’s. Note: by differentiation, I’m not talking about product or feature differentiation but outcome differentiation.

Sales Cycle 54

Sales Cycle Differentiation Early Stage Bootstrapping 54

The Equity Kicker

AUGUST 28, 2012

First the trailblazers define a new category and initially they are viewed with extreme scepticism and many people are convinced they will fail because their business model is unsustainable and/or people won’t want their products. Ironically, social networks themselves were a much weaker investment theme.

Vertical 94

Vertical Acquisition eCommerce Flash 94

Hippoland

AUGUST 16, 2018

Unless you have a differentiated angle / approach to the problem AND/OR significant traction, an investor won’t be able to understand why you stand out and why to back your horse instead of someone else’s. Note: by differentiation, I’m not talking about product or feature differentiation but outcome differentiation.

Sales Cycle 48

Sales Cycle Differentiation Early Stage Bootstrapping 48

David Teten

AUGUST 6, 2015

To help me, I interviewed the two most knowledgeable people I know about financial modeling. My colleague Paul Bianco serves as interim CFO for a number of ff Venture Capital ’s portfolio companies, and has built and reviewed hundreds of financial models. HOW TO MAKE THE ENTIRE DOCUMENT READABLE. 7) Organize your tabs.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

ReadWriteStart

NOVEMBER 5, 2019

While it’s not advisable to obsess over companies competing in your field, it’s always a good idea to be aware of their business models , the updates they make, and how your product/service may have an advantage over theirs. Having a good product but a wrong business model.

Venture Capital 77

Venture Capital Cofounder Finance United States 77

BeyondVC

APRIL 16, 2004

For those of you who understand that selling IT software to enterprises is not easy, I thought you would enjoy this email from one of my portfolio companies regarding differentiation and “secret sauce.” The post Great business model appeared first on BeyondVC. with my $3.60 outside a grocery store!

Business Model 60

Business Model San Jose Fiji Germany 60

David Teten

FEBRUARY 9, 2015

Business Model. We suggest you title your deck in this format: [Company Name] [yyyymmdd], e.g., “Klout 20150524″ This allows investors to differentiate your file from all of the other files they receive, and also easily track the evolution of your pitch as it changes. How do you make money? Customer/user.

Venture Capital 60

Venture Capital Pre-Money Valuation Prospectus Early Stage 60

Hearpreneur

MAY 18, 2015

One of the primary ways we extend our caring philosophy and ultimately differentiate ourselves in the marketplace is through innovative technology. This system allows us to create electronic portfolios and track developmental milestones for each child. What advice would you give to people looking to start a franchise?

New Jersey 48

New Jersey Technology Maryland Pennsylvania 48

Hippoland

JULY 10, 2016

Let me give you an example: several of our newer portfolio companies are both marketplaces and SaaS workflow tools. If you have multiple revenue streams, please just list your primary revenue model. Part of the reason you need to do so many investor meetings is to be able to iterate on your specific messaging. This is a growing trend.

Metrics 48

Metrics Revenue Business Model Differentiation 48

Hearpreneur

JANUARY 29, 2017

Back in the day, when I worked for Xerox, it was a true differentiator from the typical copier salesperson. Today, as a business owner, my clients are savvy CEOs who truly value and respect this core philosophy that I practice. I find that it is a game changer for the relationships I establish, both personally and professionally.

Entrepreneur 48

Entrepreneur LLC Cofounder Montana 48

Hippoland

JUNE 19, 2018

One of our portfolio companies called The Pill Club, for example, sends women birth control right to their doors. And I think there can many more schools that can be established with a differentiated approach to drive the cost of education down for young people. They rank up there with the Ivy Leagues et al.

San Francisco 48

San Francisco California Cost Software 48

Hippoland

JUNE 19, 2018

One of our portfolio companies called The Pill Club, for example, sends women birth control right to their doors. And I think there can many more schools that can be established with a differentiated approach to drive the cost of education down for young people. They rank up there with the Ivy Leagues et al.

San Francisco 48

San Francisco California Cost Software 48

Version One Ventures

NOVEMBER 1, 2020

GOAT for sneakers or V1 portfolio company SuperRare for digital art). New opportunities have emerged in this space with direct-to-consumer (DTC) brands trying to create differentiation and tilt marketplace dynamics in their favour (e.g. Strong buyer mindshare, as buyers are often collectors and passionate about their collections.

Non-Compete 166

Non-Compete Networking Differentiation Lead Generation 166

reidhoffman.org

NOVEMBER 12, 2013

It doesn’t matter whether an entrepreneur is in our portfolio, whether we’re considering an investment, or whether we’re casually meeting for the first time. But with so many investors still licking their wounds from the dot-com bust, many focused on proven business models, such as advertising or e-commerce.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

YoungUpstarts

JUNE 16, 2013

“With new business models comes the need for new technologies. Exploit Technologies has been working with A*STAR Research Institutes and partner organizations to develop portfolios of enabling technologies to help strengthen the sector’s competitiveness. Image credit: Exploit Technologies, A*STAR ].

Singapore 140

Singapore Asia Technology Networking 140

Steve Blank

SEPTEMBER 26, 2018

Google has been investing in a broad healthcare portfolio, Amazon has been investing in pharmacy distribution and Apple…? This by itself is a key differentiator for the Watch as a healthcare device. Apple has been focused on turning the Apple Watch into the future of health screening and diagnostics. to the iPhone.)

China 67

China Technical Review Software Review Algorithm 67

Transformify

JANUARY 21, 2020

Freelance jobs are becoming attractive to more people than ever before as some see them as a source of extra income while for others it is a small business of their own completely under their control. Freelance Platforms Business Model. What differentiates TopTal from the other freelance platforms is their vetting process.

Philippines 90

Philippines North Korea Cuba Bangladesh 90

techcrunch.com

FEBRUARY 19, 2010

Researchers divided the portfolio companies into six stages and startups are still operating a loss in each of the first four. Those categories represent roughly 84% of all portfolio companies. That means the vast majority of privately held companies are still very dependent on venture money to stay in business.

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62

Hearpreneur

JUNE 26, 2016

1 – Business Model. Our business is unique because our business model addresses 2 major shifts in the fashion industry today: 1) the rise of fast fashion and its affect on major more traditional fashion companies like Gap, J. Photo Credit: Stefanie Tacata. crew, Aeropostale, etc.

Entrepreneur 92

Entrepreneur Technical Review Harvest Portfolio 92

Lightspeed Venture Partners

DECEMBER 3, 2010

Real time web usage outpaces business models. Similarly, the check-in services are attracting experimental budgets from national retailers as well as forward thinking small businesses who are eager to attract new customers into their stores, and reward regular customers. A Lightspeed Portfolio company. gross margin.

Internet 113

Internet eCommerce Advertising Flash 113

VC Cafe

JANUARY 16, 2011

My-i Toolbar enables operators to offer a differentiated and branded user experience across mobile Internet devices, to increase awareness of new mobile data services by promoting operator and third party content, and to generate revenues from targeted advertising. Rad Data Communication.

Mobile 103

Mobile Securities and Exchange Commission Flash IP 103

Reid Hoffman

JANUARY 13, 2021

And one and two are, “I don’t want to do the deal,” with one being, “I really don’t want to do the deal,” and two is like, “I don’t think it should be part of the portfolio, but look, if the rest of you think it’s kind of a good idea…fine. Maybe even what your business model is in its mature, large form. Now, scale it up.”

Incubator 36

Incubator IPO Networking Cofounder 36