Thesis & Presentation

Your thesis appears well-defined and focused. Here are some points to consider: 1. **Geographic Focus**: Concentrating on India can be advantageous due to the growing healthcare and life sciences sector and untapped opportunities. 2. **...

Your thesis appears well-defined and focused. Here are some points to consider: 1. **Geographic Focus**: Concentrating on India can be advantageous due to the growing healthcare and life sciences sector and untapped opportunities. 2. **Sector Focus**: Healthcare and Life Sciences are promising sectors with significant growth potential, especially in a market like India. 3. **Track Record**: Highlighting your experience mentoring startups and their success in raising funds and achieving growth strengthens your credibility. Ensure your thesis clearly articulates how these elements will drive superior returns.

Your fund's thesis appears well-defined and focused. Here are some points to consider: 1. **Geographic Focus**: Concentrating on Latam, particularly Costa Rica, can be advantageous due to potentially lower valuations and untapped opport...

Your fund's thesis appears well-defined and focused. Here are some points to consider: 1. **Geographic Focus**: Concentrating on Latam, particularly Costa Rica, can be advantageous due to potentially lower valuations and untapped opportunities. 2. **Sector Focus**: Agri-tech is a promising sector with significant growth potential, especially in regions with strong agricultural industries. 3. **Network Leverage**: Leveraging a network of 50 VCs for co-investment and 30 large U.S. corporations for exit opportunities is a strong strategy, enhancing both funding and exit prospects. Ensure your thesis clearly articulates how these elements will drive superior returns.

Venture Studios and accelerators are very different approaches, so pick one. Also, from an LP's perspective, you need to show that you've been successful at helping or investing in working moms who have created large companies. Being an ...

Venture Studios and accelerators are very different approaches, so pick one. Also, from an LP's perspective, you need to show that you've been successful at helping or investing in working moms who have created large companies. Being an entrepreneur yourself is not correlated to you being a great investor from the LP's perspective.

Here is a template 1 pager: https://fndri.com/383hpyP  One of the best ways to setup a one-pager is to distill down the main slides in your deck into separate sections on the page. 

Here is a template 1 pager: https://fndri.com/383hpyP  One of the best ways to setup a one-pager is to distill down the main slides in your deck into separate sections on the page. 

If your fund is optimized to fund companies from your accelerator, then it could make sense to make it the focal point of your thesis. If you do mention the accelerator, provide metrics for how succesful alumni have become. This way LPs ...

If your fund is optimized to fund companies from your accelerator, then it could make sense to make it the focal point of your thesis. If you do mention the accelerator, provide metrics for how succesful alumni have become. This way LPs make a clear connection for why the fund will over-perform by specializing on investing in accelerator participants.  On the other-hand, if the accelerator is just one source of deal-flow amongst many, experiment with a different secret sauce.

Though it's usually difficult to get attribution for your work from your previous employer, you should ask. Otherwise, you can't mention your achievements because LPs will ask for proof during the DD process. In addition, consider speaki...

Though it's usually difficult to get attribution for your work from your previous employer, you should ask. Otherwise, you can't mention your achievements because LPs will ask for proof during the DD process. In addition, consider speaking with your co-workers to see if they are open to becoming a reference. The most likely solution here is that you will have to find something else to mention in your secret sauce in your thesis. 

Below is a list of the different slides needed in a standard fund presentation. We recommend that you follow the guidelines exactly to build the early versions of the deck, then refine the presentation with feedback from pitching LPs. N...

Below is a list of the different slides needed in a standard fund presentation. We recommend that you follow the guidelines exactly to build the early versions of the deck, then refine the presentation with feedback from pitching LPs. NECESSARY FUND SLIDES: • Title: Displays the name of the fund, date of last update, and contact information of key individuals. • Thesis: Provides the one sentence investment Thesis. • Team: Introduces Managing Partners with a picture and three short bullets on each. • Team (Continued): Introduces Partners and Venture Partners with a picture and three short bullets on each. • Value Add: Describes the unique value that the fund offers to portfolio companies to generate LP returns. • Market: Demonstrates the market attractiveness through a simple chart, table, or statistic. • Track Record: Showcases 1-3 relevant deals with logos, few word descriptions, value added, and markup achieved. • Pipeline: Highlights 1-3 potential deals by sharing a general overview of the company without sharing specifics. • Allocation: Tabulates the number of deals by stage along with estimated investment, valuation, and ownership details. • Returns: Exhibits anticipated returns from hypothetical portfolio companies categorized by exit sizes. • Liquidity: Illustrates up to three projected fund outcome scenarios using multiple or IRR, possibly through a pie chart. • Economics: Provides a table outlining fund economic terms like Minimum Investment Amount, Management Fees, and Carried Interest. • Thank You: Provides the fund's tagline, target closing date, and contact information for the General Partners. • Disclaimer: Contains legal disclaimers to mitigate liability. OPTIONAL FUND SLIDES: • Deal Warehouse: Highlights 1-5 completed deals that will be transferred into the fund with company logos, brief descriptions, relevance to thesis, and investment terms. • Strategy: Describes how you will access the market for the best returns. • Operations: Explains any unique operational processes or systems. • Competition: Identifies relevant firms focused on the same markets with differentiation points. • Partners: A list of partners, possible as a logo pile, to improve the credibility of the fund. • Advantages: A list of items that help the fund to stand out. • Appendix: Houses updated old slides or additional research and data pertinent to the market segment.

No. Most government backed VCs massively underperform because the government's objectives are often mis-aligned with the VC (to perform really well). Also, the government's bureaucracy and processes force the GP to dedicate an enormous a...

No. Most government backed VCs massively underperform because the government's objectives are often mis-aligned with the VC (to perform really well). Also, the government's bureaucracy and processes force the GP to dedicate an enormous amount to activities that are not related to investing or providing value add to their portfolio, which further reduces performance. 

Don't put people in your team slide that are not confirmed in general. It is sufficient to have 1 individual on the team slide.

Don't put people in your team slide that are not confirmed in general. It is sufficient to have 1 individual on the team slide.

Value Add - Describe your value add in more detail, possibly with some examples on how you have executed in the past.  Thesis - Add your 1 sentence thesis here and nothing else. Track Record - Demonstrable stats to show your previous ...

Value Add - Describe your value add in more detail, possibly with some examples on how you have executed in the past.  Thesis - Add your 1 sentence thesis here and nothing else. Track Record - Demonstrable stats to show your previous investment track record only with investments that are on thesis. 

I used to work in a (now-defunct) venture studio, and we used to be part of the Global Startup Studio Network (GSSN), now known as Morrow. Here's a white paper published by Morrow--that, of course, will be in favor of venture studios as ...

I used to work in a (now-defunct) venture studio, and we used to be part of the Global Startup Studio Network (GSSN), now known as Morrow. Here's a white paper published by Morrow--that, of course, will be in favor of venture studios as an asset class worth investing in. Here, too, is an article published by Polymath Ventures, a successful venture studio in Latin America. These articles are not as objective since they come from proponents of venture studios, but they might at least show you one perspective that is good to know more about. The challenge would be to find something that's more objective and, in Mike's words, credible and authoritative from an objective and detached standpoint.

Limited Partners are 'limited' on purpose. The limitations protect the LP, GP and the fund. If a limited partner were to make an investment decision for the fund, they would loose their limited partner protections.  To answer your quest...

Limited Partners are 'limited' on purpose. The limitations protect the LP, GP and the fund. If a limited partner were to make an investment decision for the fund, they would loose their limited partner protections.  To answer your question directly, you can say something like this in your own words: " Thank you so much for suggesting this investment. We will review it via our process." Then, if the if the investment is way off thesis and does not fit the return profile for the fund, just pass on the investment as normal. 

It's a major advantage for the fund manager to be located in the target geography of their portfolio because it allows for much faster response time, it enables them to win competitive investments and it allows them to develop the necess...

It's a major advantage for the fund manager to be located in the target geography of their portfolio because it allows for much faster response time, it enables them to win competitive investments and it allows them to develop the necessary network to succeed. 

For distributed teams, pick the country or region where most of the active team members are located and where most of the deals are being done. If one team member is likely to be the most active in the team, then you can also pick the ci...

For distributed teams, pick the country or region where most of the active team members are located and where most of the deals are being done. If one team member is likely to be the most active in the team, then you can also pick the city where that team member is based.  It should be noted that distributed teams in venture face a harder operating environment that may negatively affect returns. For example, deal decisions for the top opportunities need to be made quickly, and time zone differences can slow decisions down. In addition, partners may have different tax and regulatory burdens based on where they live, which will impact the fund operating costs and overhead. Lastly, since venture teams normally last 16 years or more, the required cammaraderie can be hard to build and develop when people live far away from one another. 

In a recent survey of limited partners, only 17% were interested in generalist VC funds. 83% of limited partners prefer specialist VC funds. The specialization is normally in an industry, such as healthcare, and also potentially a sector...

In a recent survey of limited partners, only 17% were interested in generalist VC funds. 83% of limited partners prefer specialist VC funds. The specialization is normally in an industry, such as healthcare, and also potentially a sector, such as precision medicine. The industry and the sector chosen by a manger to focus on has to (1) have enough dealflow to find top companies and (2) have enough potential to generate venture returns, which means that any one investment can have a 20x+ return on investment. Media is not considered an industry with venture returns by both GPs and LPs. 

Below are some high-level definitions with ranges. Please note that the metrics vary by region and sector. Pre-Seed Traction: Idea -> Early Signal of Product-Market Fit Product: Prototype -> Customer Product usage Team: Founders -> Cor...

Below are some high-level definitions with ranges. Please note that the metrics vary by region and sector. Pre-Seed Traction: Idea -> Early Signal of Product-Market Fit Product: Prototype -> Customer Product usage Team: Founders -> Core Founding Team Revenue: No Revenue -> First Paying Customers/Pilots Seed Traction: Paying Customers -> Product-Market Fit with Core Customers Product: Early User Retention -> Growth in Product Usage Team: Core Founding Team -> First Employees  Revenue: First Paying Customers/Pilots -> Expanding Customer Base

For the thesis, use the place where the fund is being launched in and where it plans to make investments. LPs generally do not like to invest in multiple countries, as funds are a pass through vehicle. Most LPs prefer to invest in a spec...

For the thesis, use the place where the fund is being launched in and where it plans to make investments. LPs generally do not like to invest in multiple countries, as funds are a pass through vehicle. Most LPs prefer to invest in a specified country or region.

First get the story and narrative right. Then use the projections to complement the story via your Returns and Liquidity slides.

First get the story and narrative right. Then use the projections to complement the story via your Returns and Liquidity slides.

A higher multiple company that's on thesis will be more attractive to an LP then one without a multiple. You should show those in your Track Record slide. Then, maybe consider using another example company in your Value Add slide.

A higher multiple company that's on thesis will be more attractive to an LP then one without a multiple. You should show those in your Track Record slide. Then, maybe consider using another example company in your Value Add slide.

Sexual health and well-being.

Sexual health and well-being.

There are some merits to this strategy, but there are limitless VC strategies that can work as well.

There are some merits to this strategy, but there are limitless VC strategies that can work as well.

You can highlight this startup if you don’t have anything better.

You can highlight this startup if you don’t have anything better.

You must highlight only track record that is on thesis. 

You must highlight only track record that is on thesis. 

1. Yes most LPAs have a carve out for formation 2. It really depends on your strategy. Either way you should consider showing 3 scenarios (high, medium, low)

1. Yes most LPAs have a carve out for formation 2. It really depends on your strategy. Either way you should consider showing 3 scenarios (high, medium, low)

This is for LPs, some of whom have investment committees with large institutional representatives on them, which are frequently accountants. I would avoid humor, as your deck will be shared with people like this.

This is for LPs, some of whom have investment committees with large institutional representatives on them, which are frequently accountants. I would avoid humor, as your deck will be shared with people like this.

Generally, Limited Partners prefer if you lead rounds, as this work justifies the management fees and carry.

Generally, Limited Partners prefer if you lead rounds, as this work justifies the management fees and carry.

If you can show that you helped the companies increase their value by 3x in a short period of time, that is valuable track record. However, it is not as valuable as any investing track record.

If you can show that you helped the companies increase their value by 3x in a short period of time, that is valuable track record. However, it is not as valuable as any investing track record.

You can put advisors in your deck but not their carry percentage

You can put advisors in your deck but not their carry percentage

1. Before you do this, look into if there are similar issues acts like ITAR and CFIUS in the US. A lot of space companies will face this challenge because governments will try to protect a lot of the secrets because they affect national ...

1. Before you do this, look into if there are similar issues acts like ITAR and CFIUS in the US. A lot of space companies will face this challenge because governments will try to protect a lot of the secrets because they affect national security. If the 2nd country also has a form of ITAR, then this may pose a risk. 2. Pre-Seed basically includes angel, So call it Pre-Seed.

Just because people are saying stuff like this, it doesn’t mean it’s good. In fact, it isn’t, especially relating to your thesis. If you are going to do a network pitch, position it around the thesis. Having 50 advisors that are on thes...

Just because people are saying stuff like this, it doesn’t mean it’s good. In fact, it isn’t, especially relating to your thesis. If you are going to do a network pitch, position it around the thesis. Having 50 advisors that are on thesis is much better then 500 ‘connections’

Yes, that’s what we mean.

Yes, that’s what we mean.

you should have low - medium - high scenarios and ideally in the medium you should have a realistic pathway to ~5x

you should have low - medium - high scenarios and ideally in the medium you should have a realistic pathway to ~5x

It’s common for confidants to become LPs. Ideally, you speak with confidants that are HNW individuals.

It’s common for confidants to become LPs. Ideally, you speak with confidants that are HNW individuals.

30 minutes are good 1st call. Setup a professional pitch studio with great lighting and camera if you can.

30 minutes are good 1st call. Setup a professional pitch studio with great lighting and camera if you can.

For an individual deal, you always show the blended IRR, unless the invested capital came from different sources, such as different funds.

For an individual deal, you always show the blended IRR, unless the invested capital came from different sources, such as different funds.

It doesn’t matter that much for fundraising, and, more importantly NEVER disclose who your LPs are. That being said, you will likely have some conflicts of interests that you will need to work out with these design partners.

It doesn’t matter that much for fundraising, and, more importantly NEVER disclose who your LPs are. That being said, you will likely have some conflicts of interests that you will need to work out with these design partners.

VC Lab is designed to help people launch enduring venture capital firms. VCs invest in company equity and not in other assets. The program will be sub-optimal for non VC firms.

VC Lab is designed to help people launch enduring venture capital firms. VCs invest in company equity and not in other assets. The program will be sub-optimal for non VC firms.

Exits, subsequent funding rounds and revenue growth are the best startup metrics for a Thesis in order.

Exits, subsequent funding rounds and revenue growth are the best startup metrics for a Thesis in order.

Usually Net because it’s designed to give the LP a sense of what the return on their capital will be.

Usually Net because it’s designed to give the LP a sense of what the return on their capital will be.

Yes, you can include VPs on your Team slide

Yes, you can include VPs on your Team slide

No it's not because VPs are part-time members of the fund and LPs don't put much weight on their experience. 

No it's not because VPs are part-time members of the fund and LPs don't put much weight on their experience. 

You should include succesful angel investments that are also on thesis. 

You should include succesful angel investments that are also on thesis. 

If your deck is already awesome, then you can test ideas like this. Otherwise, focus on making the core deck awesome.

If your deck is already awesome, then you can test ideas like this. Otherwise, focus on making the core deck awesome.

They are fundamentally different models. With an accelerator - the entrepreneurs come up with the ideas and you provide limited resources. With a venture-studio, you came up the ideas and you provide resources to help. You will have a lo...

They are fundamentally different models. With an accelerator - the entrepreneurs come up with the ideas and you provide limited resources. With a venture-studio, you came up the ideas and you provide resources to help. You will have a lot of complexity with respect to managing various conflicts of interest. Try to focus one model for V1. It sounds like you’re doing a venture builder. Focus on that for now.

You can invest up to ~20% off thesis. But just because you can, it doesn’t mean you should. In the scenario above you should AVOID it. It is CRITICAL that your first investments are on thesis because that’s how you PROVE the thesis to f...

You can invest up to ~20% off thesis. But just because you can, it doesn’t mean you should. In the scenario above you should AVOID it. It is CRITICAL that your first investments are on thesis because that’s how you PROVE the thesis to future LPs that will come into subsequent closings.

Read VC Lab's General Solicitation guide: https://govclab.com/2022/06/28/general-solicitation/

Read VC Lab's General Solicitation guide: https://govclab.com/2022/06/28/general-solicitation/

If the contact that you asking for feedback from is not excited about what you are doing and not engaged to learn more, then your Thesis is not good enough. Most of the time, specific feedback is not useful. Measure success of your Thesi...

If the contact that you asking for feedback from is not excited about what you are doing and not engaged to learn more, then your Thesis is not good enough. Most of the time, specific feedback is not useful. Measure success of your Thesis by their engagement. If they are not a “yes,” then they are a “no.” Paul spoke about this in the webinar today.

This is called a Seed investment. 

This is called a Seed investment.