Venture Capitalist

How important is having a formal business plan when an entrepreneur presents to you guys? I hear totally conflicting opinions on this, from "it's an absolute must" or "don't bother, waste of time."

Asked by JordanBK almost 13 years ago

I am not concerned by seeing an formal business plan. A simple powerpoint/keynote presentation is typically much more effective outlining an opportunity vs. a word-heavy formal business plan. Most importantly, I want to see a product demo, even if just an initial prototype.

Have you ever made an investment with a company that cold-called your firm? Or are all of your investments sourced through referrals? What would you recommend for start-ups seeking investment who aren't "connected' with Silicon Valley?

Asked by Dominique almost 13 years ago

It's very rare for cold calls to lead to investment across the entire VC industry and our firm is no exception. My recommendation is to start by connecting with other entrepreneurs. First, you will learn a lot from people that have been through it before. Even if they can't make an investor introduction, it can still be invaluable to learn about what contributed to their successes and failures. And if they've been through fundraising themselves they likely can also make introductions to potential investors.

Are you and your team gung-ho about the Pinterest model/design, or do you see this as a passing fad?

Asked by JordanBK almost 13 years ago

I believe Pinterest has the potential to be a great company. Most importantly they delight their own users with a highly engaging product. That usage translates into substantial traffic for many web properties, a trend which is likely to grow and even accelerate given the network effects associated with their community. Companies like Pinterest that generate significant traffic (e.g., Yahoo's directory in web 1.0, Google's search engine, Facebook's stream, Twitter's stream) have both strategic and intrinsic value. And the commercial orientation of the Pinterest experience leads me to believe that over the long term a Pinterest user will likely be worth more than a Twitter user, and even possibly more than a Facebook user. That being said, I don't think that copying Pinterest's design for a different vertical is a winning formula. During Twitter's early success there were many copycats, none of which went on to be successful. Product design is absolutely critical in sparking initial user adoption, but over the long term the value is largely in the network of people.

If you had to guess, what percentage of VC's actually have entrepreneurial experience? Can someone be a great VC without it?

Asked by Sunil almost 13 years ago

I don't know what the percentage is. Can you be a great VC without it? Yes, absolutely. Before he was a VC Mike Moritz was a reporter. Bob Kagle of Benchmark? A consultant. Fred Wilson? He became a VC directly out of business school. Does it help to have entrepreneurial experience? Absolutely. But as with most professions in life there is more than one path to success.

I've worked for a prominent advertising / marketing firm for about two years and want to transition to vc, despite a liberal arts degree. I currently work in inbound / outbound marketing w/ a focus on tech startups. What are some solid next steps?

Asked by EPNY over 11 years ago

If you were , say, a small artisanal bakery with a pinch of French bistro and tou needed funding to expand your business, who would you ask?

Asked by Cordon Rouge Bistro about 11 years ago

If you wouldn't mind, give a brief explanation on what a VC is and what an average day is like. I'd like to hear a human's version rather than the dictionary's.

Asked by The Excited High Schooler over 11 years ago