Category Archives: New to Venture Capital

Making Sense of Venture Valuations: Understanding the Basics for Smart Investing

With all the excitement about today’s unicorns – privately held, venture capital-backed companies valued at over a billion dollars – and the anticipated stream of IPO’s this year, smart investors need to understand what venture valuation is all about. We’ll try here to arm investors with that understanding. Valuation Fundamentals 101 Venture capital investing is […]

What It Takes to be a Successful Venture Capitalist

Successful venture capitalists have intuitive and analytical skills. They must be able to assemble and digest large amounts of data – some precise but some pretty vague and incomplete – and integrate all that information in order to make seriously consequential decisions. . . . The venture capitalist must often be a skeptic, as he […]

How Venture Capital Can Help You Avoid Investment Mistakes

Too many investors “vote” repeatedly. They don’t practice the buy-and-hold discipline espoused by Mr. Buffet. On an average day, 3-4 billion shares change hands in NYSE composite trading. Even worse, too many investors rush in following market run-ups and then sell in a panic as prices plunge. In the midst of some recent volatility, small […]

How Venture Capital’s Riches Are Becoming Available to More of Us

Changes in the venture capital playing field will also contribute to making the coming years good ones for venture capital investors and great ones for entrepreneurs. As we mentioned earlier, the accessibility of venture capital investment opportunities is becoming democratized. Today there are roughly a half million individual venture capital investors in the US alone, […]

Even More Opportunities to Win with Venture Capital

Ironically, more traditional venture capital firms like ours, which only allow investments from accredited investors and, even though accessible online, set a higher minimum investment requirement (our new firm VCapital has a minimum individual investment requirement of $25,000), welcome these new (online crowdfunding) firms that are democratizing the industry. Frankly, they are so new relative […]

You Can Find Lucrative Venture Capital Opportunities Almost Anywhere

As awareness of recent venture homeruns has grown, there has been a surge in innovative venture activity. It’s no longer limited to Silicon Valley and Boston’s Route 128. Venture capital activity is flourishing in New York, Los Angeles, the DC metro area, Austin . . . and anywhere where creativity, ambition, and the funds to […]

How to Win in Venture Capital: Avoid FOMO*; Concentrate on Early Stage Investments

(*FOMO = Fear Of Missing Out) As a consumer, you may love Uber. Lots do. But Uber is a vivid reminder of the potential perils of FOMO-driven late stage venture investments. While most early stage venture investments may not evoke your friends’ envy, and each one faces considerable risk of even surviving to maturity. Nevertheless, […]

We Are Bullish on the Future of Venture Capital

We’re bullish on the future of venture capital. For anyone who thinks the greatest innovations are behind us and questions how much is still left to invent, we would argue that the greatest days of innovation and hence of venture capital opportunity are still to come. . . . The tools and technologies that are […]

Unicorns May Be Over-Valued

Interested in the Unicorns? Beware! Many unicorns have already achieved notable marketplace success and will undoubtedly survive and even thrive over the long term. Nevertheless, even in the case of those making considerable strides in the marketplace, some of their current valuations strain credulity. We believe that, in many cases, their late-round investors risk vulnerability […]