This week, we at Tracxn have uncovered some of the most interesting blogs and articles in the VC world. Here is a compilation of them for your weekend read:
Flybridge Capital Partners – Growth vs. Profitability and Venture Returns by Jeff Bussgang
Jeff Bussgang, General Partner at Flybridge Capital Partners, talks about what it takes for VCs to achieve venture returns, and why it is important for VCs that entrepreneurs shift their focus from growth to profitability. Jeff feels that in order for a venture capital fund to be considered a success, they need to deliver on one of two metrics: 1. a cash on cash investment multiple of greater than 3 times invested capital, or 2. a net internal rate of return (IRR) of greater than 15%, and he explains how to do so in this blog.
Find this interesting? Read the full version here.
SaaStr – What is the most challenging aspect for GPs when LPs conduct due diligence on their VC funds and teams? by Jason Lemkin
Jason Lemkin, Founder, SaaStr, shares his view on the challenges GPs face when LPs conduct due diligence on their VC funds. According to Jason there are two main challenges, one being financial, where LPs will want to pour through a GPs track record in as much detail as possible. The other is reference diligence.
Read Jason’s blog here.
Starting today “civilians” can be angel investors — should they? by Jason Calacanis
In his personal blog, serial entrepreneur, angel investor, podcaster and writer, Jason Calacanis, shares his take on the JOBs act coming into effect, its implications, and what it means for both accredited and un-accredited investors. Jason feels that major concern with non-accredited investors investing in startups is that they will be pitched the worst deals, or the worst in terms of deal flow, because top entrepreneurs get to pick their investors.
Read the full version of Jason’s opinion piece here.
Version One – Our Guide to Marketplaces, now summarized in a deck by Angela Tran Kingyens
In the official blog of Version One, Angela Tran Kingyens, Version One’s associate, presents an interesting overview of marketplaces presented in the form of an engaging and easy to read deck. The deck explains about the various facets of Marketplaces including tips on seeding, growing and scaling a marketplace, as well as provides insights on how to work with investors.
Check out the deck here.
Brooklyn Bridge Ventures – Know Thyself, Venture Capitalist: Thoughts on feeling open or closed by Charlie O’Donnell
In his blog, Charlie O’Donnell, the sole Partner and Founder at Brooklyn Bridge Ventures, provides his advice to investors on the importance of being open or closed to new deals. According to Charlie, using personal feelings while judging a deal can be dangerous, and though one can never eliminate all emotions during the process, one needs to be conscious of which emotions are present when making a decision.
Check out the blog here.