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My analysis

I have personally seen 2,684 companies that are b2b, seed stage and based in Europe. Of those, I’ve met in person or had a call with almost 600. Unlike the larger number, these 600 are companies where I’d at least spent time speaking with the founders and understanding the company, so I felt it was a better data set to use for this analysis.

In this analysis, I’m hoping to propose a method for venture investors to reduce the learning cycles and base those faster learnings on far more data points.

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MORE IDEAS FROM THE SAME ARTICLE

I paired the dataset of c. 600 companies and why I said no to them with publically available data on the total amount each company raised since we passed and divided by the number of months since then. This allowed me to roughly compare the many companies on a level playing field, regard...

My main two learning’s here are that a) we should not be investing in small markets, even with a great team and b) we should usually avoid investing in companies with highly competitive markets unless we think the team is incredible.

Firstly, that at the seed stage, product and business model are not good reasons for rejecting a company. C.50% of the investments we make at frontline are Pre-Product and C. 75% are Pre-Revenue. Potentially it is not that relevant at this stage of a company’s development to have...

Frontline has always tried our best to price investments at what we feel are fair prices reflecting where the team, product, and the market are. We have not lost investment to a VC that was pricing a deal at a similar level as us, but we have lost deals to other VCs who were pricing it materially...

Weak founders have only raised 30% of the average and a 12th of the capital that my portfolio has. On the right-hand side of the chart, you can see each rejection reason but just selecting the companies where I marked in our system as liking the founders a lot. They on average raised 2–3X the ave...

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From a venture capitalist’s point of view, the ideal entrepreneur:

  • delivers sales or technical advances such as FDA approval with reasonable probability,
  • tells a compelling story and is presentable to outside investors,
  • recognizes the need for speed to an IPO for liquid...

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60% Were Not First-Time Founders

  1. Among the founders of billion-dollar startups, almost 60% were not first-time founders.
  2. In a randomly selected group of startups that had raised a minimum of $3 million in venture capital funding but didn’t reach unicorn status — the typical picture for a seed-funded startup — about ...

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Modern Day Cowboys

Today’s venture capitalists look more like bankers, and the entrepreneurs they fund look more like M.B.A.’s.

The U.S. venture-capital industry is envied throughout the world as an engine of economic growth.

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published 8 ideas

I am passionate about Investment and most importantly investing in businesses directly. Had a conversation with the VC Lab on the formation of my new Venture Capital firm and I needed to compare my fundraising strategy with what I can find on the internet, and that led me to this article by Harvard Business Review (One of my favourite places to go lol)

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