Over the years, I’ve become more and more convinced that what sets apart great venture capitalists from the not-so-great ones is investment discipline. By default, most all people who work in venture capital are intellectually brilliant and have strong entrepreneurial backgrounds. As such, if everyone is smart, it makes sense to suggest that brilliance alone … More The Pursuit of Discipline in Venture Capital
I was listening to a Freakonomics podcast this week about the major difference between risk and uncertainty. Like most people, I previously assumed risk and uncertainty were essentially the same thing. But after listening to the researchers on this podcast it became blaringly apparent how different the two are. Webster defines risk as the … More Understanding Risk and Uncertainty: Making Wise Decisions As An Entrepreneur
In the past week or so I’ve been asked by a couple up-and-coming VC fund managers what investors really want to know before they’ll invest in a fund. Without much concentration, I think it’s easy to say that most investors want to know about current and past performance. But if you think about this question … More Measuring Investment Performance by Measuring Deal Flow
My wife and I went out with a group of friends and family last night to celebrate my birthday and had a great time. We spent a fair amount of time standing around waiting for our table because the restaurant was crowded and there were several in our group (like 11 or so). Once we … More Caught In The “Dead Zone”
Let me start off by saying that I have nothing against dogs and that in general, I think dogs are great. In fact, ever since we got our dog two years ago, I’ve noticed patterns in his behavior that suggest he might make for a great CEO. To set the stage, I never had any … More The Few Things I Admire about My Dog
Over the last week or so, I have seen quite a few pitch decks from VC fund managers who are either raising a new or follow-on fund investment fund. One of the interesting things about the majority of these meetings is not going page by page through the firm’s pitch deck in its entirety. It’s … More The “Un-Pitch Deck”
Over the last few years there has been an ongoing dialogue amongst pension funds on whether or not actively managed funds are better than passively managed funds. This has been an ongoing topic in the pension world for several years now. Having observed and participated in these conversations I have noticed there are usually two sides … More Mutual Funds, Index Funds, or VC Funds?