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ACADEMY: What are the advantages of investing in startups?

Posted by Tanya Prive on Jun 14, 2016 11:00:00 AM

 

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Topics: Venture Investing Academy

ACADEMY: Why is venture important in a portfolio?

Posted by Tanya Prive on Jun 10, 2016 11:00:00 AM

 

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Topics: Venture Investing Academy

ACADEMY: What is the "Portfolio Effect?"

Posted by Erica Duignan Minnihan on Jun 7, 2016 11:37:00 AM

 

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Topics: Venture Investing Academy

ACADEMY: What is venture investing?

Posted by Erica Duignan Minnihan on Jun 7, 2016 11:30:00 AM

 

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Topics: Venture Investing Academy

ACADEMY: Why invest in Startups?

Posted by Erica Duignan Minnihan on Jun 3, 2016 11:00:00 AM

 

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Topics: Venture Investing Academy

What is a “Down-Round”?

Posted by Erica Duignan Minnihan on May 20, 2016 1:30:00 PM

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Topics: Venture Investing, Down-Round

What is Runway?

Posted by Erica Duignan Minnihan on May 19, 2016 2:00:00 PM

Runway tells you how much time a company has before it proverbially “crashes and burns” or for the more optimistic, how long it has to “get off the ground”. This means, how many months can the company continue to cover overhead and salaries before it runs out of cash and needs to close down. Hopefully the company will either reach cash flow break even, or some sort of inflection point in growth that will encourage follow on investment before that point.

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Topics: Venture Investing, Runway

Why Do Co-Investors Matter?

Posted by Erica Duignan Minnihan on May 18, 2016 4:00:00 PM

 

As an early stage investor, finding a great company is only half the battle. As in life, in investing “it takes a village” as they say. And that is why companies are very careful about who they invite to be on the cap table. Certain investors can add a lot of strategic value to a startup, providing the “grown up in the room” to young teams by harnessing their experience through service on the board or in an advisory role.

Unless you want to be single handedly responsible for driving the growth of the company and an eventual liquidity event, make sure you have some high quality co-investors in the round. Beyond the ability to use their experience to help your founding team avoid startup pitfalls, experienced value add investors can also help the company find funding for follow on rounds.

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Topics: Venture Investing, Co-Investor

What are Exit Multiples?

Posted by Erica Duignan Minnihan on May 17, 2016 4:00:00 PM


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Topics: Venture Investing, Venture Investing Academy, Exit Multiples

Why is Venture Important in a Portfolio?

Posted by Erica Duignan Minnihan on May 17, 2016 12:00:00 PM


For high net-worth individuals with investible assets of $1 mm or more, adding venture investments to your portfolio can be a very smart move. Just as you probably counterbalance your investments in public equities with a certain amount of very stable assets, such as bonds, and cash equivalents that are intended to preserve capital but provide low returns, adding a small amount of high-risk, high-return assets can enhance the performance of your portfolio.

But you ask, how is that possible? Well it’s a little thing called portfolio theory. As you add uncorrelated assets (assets that don’t necessarily move in the same direction at the same time) to your portfolio, you tend to enhance your risk adjusted return. Which means, that for the amount of risk you are taking, you are being better compensated with the return on your investment.

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Topics: Venture Investing