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20VC: From Seed To Series A: The Due Diligence, The Valuations, The Investment Decision Making Process with Steve Schlafman @ RRE Ventures

Aug 3, 2016

Steve Schlafman, a marketplaces, mobile services, and hardware investor at RRE Ventures, discusses the differences between Seed and Series A investments, valuation comparisons, and the importance of detecting small but meaningful markets. He shares insights on due diligence processes, investment decision making, and the role of intuition in VC. Steve also highlights the significance of mentoring in the venture ecosystem and mentions his recent investment in Brightwheel.

24:47

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Episode guests

Steve Schlafman

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Quick takeaways

Moving from seed to Series A involves a shift to more strategic approach in investing.

Seed stage relies on gut instincts, while Series A allows for longer evaluation periods and flexibility in valuations.

Deep dives

Transition from Seed to Series A

Moving from the seed to Series A stage involves a shift from instinctual investing focused on fast decisions and founder relationships to a more strategic approach. At the seed stage, valuations are within a tight band while Series A offers more flexibility due to larger investments. Additionally, Series A allows for a longer evaluation period of companies and markets.

Trust Your Gut in Seed Stage Investing

01:01

Intro

2min

Navigating the Journey from Seed to Series A in Venture Capital

11min

The Role of Intuition in Investment and Decision-Making Process

7min

Exploring the Significance of Mentoring and Knowledge Sharing in the Venture Ecosystem

2min

Discussion on Brightwheel Investment and DesignCrowd Sponsorship

3min

Steve Schlafman is an early stage investor @ RRE Ventures, where he specialises on marketplaces, mobile services, and hardware. Steve is responsible for RRE’s investments in theSkimm, Hightower, TinyBop, Breather, and Managed by Q. Prior to joining RRE as a Principal, Steve was a Principal and rockstar seed investor at Lerer Ventures. Before becoming a venture capitalist, Steve worked at Stickybits Inc. and Turntable.fm, and served as Director of Venture Investments at The Kraft Group. Steve also worked at Massive Inc. and at Microsoft, where he focused on Biz Dev Strategy and Corporate Finance.

In Today’s Episode with Steve You Will Learn:

How Steve made his way into VC from Microsoft, to Kraft to startup to VC?
Why does Steve think Seed to Series A is such a different ball game? What are the different characteristics encompassed within each?
With such little data at seed, what does Steve’s DD process look like? How does that affect his investment decision making process @ RRE?
What is the valuation comparison between Seed and Series A? How is this determined and how has this changed since Steve’s time at Lerer?
Why do the best markets often appear small and become meaningful? How does Steve look to detect these small markets?

Items Mentioned In Today’s Show:

Steve’s Fave Book: Who (Hiring Process), Work (Hiring @ Google), Leading (Michael Moritz)

Steve’s Fave Blog or Newsletter: AVC, Stratechery, The Skimm

Steve’s Most Recent Investment: Brightwheel

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