Asking if a Startup Idea is Good

Recently an entrepreneur was walking by in the hall and asked if I’d listen to the latest idea he was working on. Sure, I said, and we talked for a few minutes. Upon asking me if I liked the idea, I immediately thought on Fred Wilson’s tweetstorm and said that it doesn’t matter if I…

B2B Tech Incubator Entrance Requirements

Over the past couple years I’ve had the chance to talk with several entrepreneurs that are interested in setting up a tech incubator. At the Atlanta Tech Village, we don’t call it an incubator because there’s no equity component. One of the tech incubator discussion topics was around entrance requirements, especially in a B2B context, with…

VC Managing Partner Economics – Round 2

After yesterday’s post on Venture Firm Managing Partner Economics, I received a number of good comments and thoughts. Parker Conrad, founder/CEO of Zenefits, offered up that the economics for a VC change dramatically when managing multiple funds simultaneously. So true. Here’s how the economics might look with multiple funds under management: Fund 1, with $100…

Venture Firm Managing Partner Economics

Recently I was talking with an entrepreneur about his goals and aspirations. He offered up something I don’t hear too often: once he sells his company he wants to become a venture capitalist. We dug into it more, especially the economics, and analyzed how it might work out. Here’s an example scenario of a venture firm with a $100…

50 $5k Bets or 5 $50k Bets

Recently I was talking to a successful entrepreneur that wants to start doing some angel investing. As part of this initiative, he wanted to initially invest roughly $125,000 per year for two years ($250k total). He said he was looking at a variety of strategies and debating between two approaches: 50 $5k Bets – Invest…