VC Adventure

MAY 5, 2022

I’m observing that IRR is a metric that is becoming an increasing focus in venture, replacing fund return multiple as the key metric of success. I understand the draw of IRR, and – as a fund draws to a close – there’s no question it’s an important metric. This is a mistake. Many will not.

IRR 116

IRR Metrics Valuation LP 116

View from Seed

MARCH 19, 2015

He’s dubbed the approach “ pretotyping ,” and it shares many of the same principles as both its similar-sounding (if later-stage) cousin, prototyping, as well as the more well-known lean startup movement. The right metrics are key to identifying The Right It. AS: Good question.

Product 120

Product Technical Review Marketing Lean 120

K9 Ventures

JUNE 5, 2015

Almost two years ago, in a private/closed meeting with K9 Ventures’ LPs only, I claimed that: What was being referred to in the press as the “Series A Crunch” was not because fewer Series A deals were being done, but because there were too many Seed deals being done. Seed stage was super tough. Pre-Seed is the New Seed.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

K9 Ventures

OCTOBER 10, 2017

A follow-up post, titled The Seeds Have Changed: An Epilogue , on June 5, 2015, explained this further: Pre-Seed is the New Seed. If the Micro-VCs are looking for Series A-like metrics, what does a company do when it’s just getting started? Or if the traction is not yet interesting enough to attract a full Seed round?

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

View from Seed

JUNE 16, 2015

And that product is a highly engaged seed-stage investment where we are usually the lead or co-lead in a round and will often take a board seat. In my opinion, VCs shy away from directly answering the questions pertaining to “at what point a company is fundable” or give a generic answer regarding revenue.

Boston 120

Boston Syndicate Syndication eCommerce 120

Hippoland

AUGUST 31, 2018

Then I asked him about his metrics, which are good, but they are were not at series A level. Also, to be clear, pre-seed doesn’t mean that one just thought up an idea yesterday and has done nothing. There’s a lot of work to do to prepare to raise money at this pre-seed stage. This was surprising to me.

Pre-Money Valuation 90

Pre-Money Valuation Valuation Silicon Valley Early Stage 90

Hippoland

AUGUST 31, 2018

Then I asked him about his metrics, which are good, but they are were not at series A level. Also, to be clear, pre-seed doesn’t mean that one just thought up an idea yesterday and has done nothing. There’s a lot of work to do to prepare to raise money at this pre-seed stage. This was surprising to me.

Pre-Money Valuation 48

Pre-Money Valuation Valuation Silicon Valley Early Stage 48