Regular Investor Updates

After investing in a number of startups over the years, it’s clear that entrepreneurs need some guidance around regular investor updates. At the most basic level, investors should be updated on a regular basis either monthly or quarterly, both to help the investor understand how things are going as well as to let the investor…

Thoughts on Zombie Startups

Ever watched the show The Walking Dead? Every episode zombies appear and mayhem ensues. Even years after the apocalypse started, zombies (called walkers in the show) are still roaming around doing their thing. Well, the startup world has a similar challenge with zombie startups (minus the gore and killing part). Zombie startups are startups that…

Venture Fund Cash Flow Considerations

Continuing with yesterday’s post on the insider view into the venture world, there’s another element of venture funds that I didn’t understand and that’s around cash flow. At first, it seems like if a venture fund is $50 million, then they have $50 million to put to work immediately. In reality, it’s much more complicated. Here…

Viewing the Venture World as an LP

After we sold Pardot, I decided to invest in a few venture funds as a limited partner. While I want to receive great returns (e.g. 3x cash on cash), I’m even more interested in understanding how venture works and what it looks like from the inside. After a number of conversations, quarterly updates, and annual meetings,…

Challenges with Heavy Startups

The Lean Startup methodology has been popular for several years now and promotes a simple, iterative process to find customer demand and build a product around it in a customer-centric manner. Now, the opposite of a lean startup is a heavy startup where the entrepreneurs think they know what the market wants, raises a ton of money…