VC Portfolio Support Strategy
Shortening VC Learning Cycle
Hope you all are doing great and having a great time.
This week's newsletter covers pieces around building a successful portfolio support strategy.
Some of the relevant content related to VC portfolio strategy that I have recently come across and presently using it in my work at Moonshot Ventures:
Bloomberg Beta Open Source Operating Manual: https://github.com/Bloomberg-Beta/Manual/blob/master/1%20-%20Manual.md#the-deal-terms
Different kinds of Portfolio support strategy in the VC world:
Act as a Hedge fund - invest and leave the portfolio - in theory, it is a more scalable strategy. E.g., Correlation Ventures
Mentor strategy -systematic, standardized support - this is the best working strategy - Historically proven approach - it's a relatively low cost
Portfolio Operator Strategy - requires a significant investment of capital - a lot familiar in PE world
Main themes/areas of support:
Outsourced Financial Services - especially for tech startups
Service Providers - PR firms, legal firms, SEO firms - it takes a lot of money in advance - late-stage VCs do that
Templates of how to build your company
Listen to David Teten's thoughts on Portfolio Support Strategy:
A lot of VCs call these as beyond capital support as "platform," e.g., https://www.frontline.vc/platform, and many are calling it a platform approach to VC.
Research/ White Paper on Portfolio Strategy: https://www.caia.org/sites/default/files/membersonly/The_Lower-Risk_Startup.pdf
Beyond capital: VC firms use their Platform strategy as an additional differentiator in a market that has become over-competitive. https://openviewpartners.com/blog/truth-vc-value-add/#.XarPsJIzbB
Occasionally, he blogs about the responsible investing, tech for good, venture capital, investment thesis, conscious capitalism, collaborative consumption, community, and humane lifestyle. To read his blogs, please visit humane.network.