Venture Capital

Peter and I provide anonymous feedback to a first-time founder. We talk about their revenue numbers, team size, and if this startup should attempt to raise venture capital.

VC rips apart a pitch deck for a very open and honest review. Peter Harris from the University Growth Fund reviews the pitch deck for Appointment.com In this episode learn what a later-stage VC actually thinks about a pitchdeck.

How to Start a SyndicateIn today’s episode we find how one gets into Venture Capital and deep dive into everything about a Syndicate. Some Points Covered in This Episode Include:What is a syndicate, and how is it different from an SPV?What is the appeal of a syndicate?As an investorAs a companyAs a managerHow do syndicate managers/operators make money?Syndicates also charge carry - usually 20% in total. Carry is a cut of positive returns generated by the investment. Example: let's say you invest $1000 in a syndicate with 20% carry. If the investment returns $2000, the syndicate would earn $200 in carry. 20% * ($2000 - $1000).https://angel.co/syndicates/for-investors#requirementsWho are the most common syndicate leaders?Jason CalcanisUberCalmDave EisenbergCoinbaseWarby ParkerTom Williams (from Apple)Layer 6How do you manage a syndicate?AngelListAssureAttorney/AccountantWhat does it cost to start a syndicate?AngeList charges a one-time fee of ~$8,000https://angel.co/syndicates/for-investors#requirementsHidden costs of finding investorsWhat are the SEC/accreditation rules for starting one?Salary of $200k+Net worth of $1M+Work in industryhttps://help.venture.angel.co/hc/en-us/articles/360047682112-What-is-an-accredited-investor-Who should start a syndicate?Who should not start a syndicate?Areas of specialization:GeographyUtah-basedIndustry basedAlumni SyndicatesFacebookAirBNBLet us know your thoughts on a Syndicate? How do you feel about them? What should we talk about next? Give us a follow and leave us feedback.Follow Peter HarrisTwitter: https://twitter.com/thevcstudentLinkedIn: https://www.linkedin.com/in/peterharris1Instagram: https://instagram.com/shodanpeteYoutube: https://youtu.be/Hy9DsuFzTH4Follow University Growth FundWebsite: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfundFollow Jon BradshawLinkedIn: https://www.linkedin.com/in/mrbradshaw/Instagram: https://www.instagram.com/mrjonbradshaw/Twitter: https://twitter.com/mrjonbradshawYoutube: https://youtu.be/spRuy517if0

How is Data Science improving Venture Capital?Jon asks Peter everything about data science. What data sources are they currently using? And how much will it disrupt the functioning of Venture Capital firms.Some Lies/ Points  Covered in This Episode Include:Would you say data science is changing things?What Data Sources are University Growth Fund are using at this point?For seed and early-stage firms, when data is almost non existent, will it be a barrierA venture capital deal pipeline has three key elements: sourcing, benchmarking and value-add. Can Data science help on all three fronts?What are some of the other challenges you foresee?It’s a very intuitive field, do you think backing it with numbers and data will give VCs clarity while making decisions or make them second guess their intuition on                                                things that really matter- word of mouth, integrity, past personal or peer experiences.Things that data can’t support.Often, data from sources such as Twitter, LinkedIn, Pitchbook, Crunchbase, and AngelList are obtained and then pooled and organized. The organization and manipulation of third-party data can be time and labor-intensive. Pooled third-party data that is improved and arranged in a customized manner can eventually become proprietary in nature. Your thoughts?Once VC ventures become data backed, they will need to hire or re-organise teams that can collate and work with such data. How soon do you see that shift comingPS-  it may call for a different talent sourcing model and organizational structure, with resulting implications for the structuring of compensation and incentives.For example, the venture capital firm Social Capital has built an automated system to invest in startups without meeting them. Companies upload data about themselves, and if the firm’s algorithms score the companies well, the firm backs them with an investment. The process was designed to keep bias from entering the equation. By mid-2018, the firm had assessed over 5,000 startups and invested in 60. Most of the investments were in companies based outside the major venture capital markets of the Bay Area and New York, and many were based overseas. About 80% of the companies featured non-white founders and 30% featured female founders. Do you see them as outliers or can that be the upcoming trend?Let us know your thoughts on data science/ AI changing the Venture capital? What should we talk about next? Give us a follow and leave us feedback.Follow Peter HarrisTwitter: https://twitter.com/thevcstudentLinkedIn: https://www.linkedin.com/in/peterharris1Instagram: https://instagram.com/shodanpeteYoutube: https://youtu.be/Hy9DsuFzTH4Follow University Growth FundWebsite: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfundFollow Jon BradshawLinkedIn: https://www.linkedin.com/in/mrbradshaw/Instagram: https://www.instagram.com/mrjonbradshaw/Twitter: https://twitter.com/mrjonbradshawYoutube: https://youtu.be/spRuy517if0

Common Lies VCs HearTruth or optimism. VCs hear multiple people talk about their plans, their business and they toe the line of sometimes being overly optimistic that it could be a lie. Here is what not to say, or how to frame it differently next time. Some Lies/ Points  Covered in This Episode Include:Saying your market is a huge number/ some ridonculous billion $ industry, but the fact is you dont know whats the sub sector or specific part of the market you are targetingAll we need is get 3% of the marketOur contract with a “big company” is going to be signed ANYTIME NOW.But the truth is that the process is much longer. So over committing your  investors is no good. Play low key when talking about accomplishments, and surprise with newsThere is no competition. No one else can do what we can do OR we have the first mover advantageThey mis- estimate the sales plan. Give an unrealistic time period- 45-90 days of sales cycleMy projection is conservative. Is it really?Let us know what are the common lies you have heard? What should we talk about next? Give us a follow and leave us feedback.Follow Peter HarrisTwitter: https://twitter.com/thevcstudentLinkedIn: https://www.linkedin.com/in/peterharris1Instagram: https://instagram.com/shodanpeteYoutube: https://youtu.be/Hy9DsuFzTH4Follow University Growth FundWebsite: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfundFollow Jon BradshawLinkedIn: https://www.linkedin.com/in/mrbradshaw/Instagram: https://www.instagram.com/mrjonbradshaw/Twitter: https://twitter.com/mrjonbradshawYoutube: https://youtu.be/spRuy517if0

Is Venture Capital Slowing Down?A quick look at the sudden decline in the numbers. Looking at the numbers from Q4 and Q1 to analyse if there is a shift or worse a slow down coming. What do you think?Questions Covered in This Episode Include:In Q1, 4,822 VC deals were closed totalling $70.7 billion, which was far below the $90 billion of VC investment in Q4 2021. Are you seeing the trend too?Why do you think that’s happening?Are q2 numbers going to be alarming?Looks seed funding actually saw a boost of 14% while late stage funding is down by 19%. Is there a telling sign of something? Why do you think that has happenedThe big reason for these numbers have been low activity on mega deals. Do you think people are getting averse to bigger risksOverall why do you think 2022 will be still a good year for the VC industry/ better than few years“The value of technology stocks began to decline in late 2021, a slide that continued into 2022, leaving many tech shops trading at a stiff discount to their recent valuation highs.”- Do you think VCs love for tech will shiftHow are these dwindling numbers going to change the VC ecosystem- Let us know what you think about the shift? Do you predict a slow down too?. What should we talk about next? Give us a follow and leave us feedback.Follow Peter HarrisTwitter: https://twitter.com/thevcstudentLinkedIn: https://www.linkedin.com/in/peterharris1Instagram: https://instagram.com/shodanpeteYoutube: https://youtu.be/Hy9DsuFzTH4Follow University Growth FundWebsite: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfundFollow Jon BradshawLinkedIn: https://www.linkedin.com/in/mrbradshaw/Instagram: https://www.instagram.com/mrjonbradshaw/Twitter: https://twitter.com/mrjonbradshawYoutube: https://youtu.be/spRuy517if0

Misunderstood Venture Capital TermsIf you don’t understand all the terms, and especially the ones that are part of your fundraising journey, it can cost you big bucks. In today’s episode we discuss such real life examples where real time mistakes were made. Questions Covered in This Episode Include:What is Liquidation preferenceHow are Participating Preferred different from Non Participating Preferred StocksWhat terms work the best for you as an entrepreneur What is a clean term sheet and what are the benefitsUnderstanding Anti- Dilution Clauses with another real life exampleWhat to choose when you have to decide between a higher valuation vs structure?Understanding Convertible Note vs SAFEWhat is a Standard Price RoundWhat is the next inflection point for a businessLet us know the terms you had a hard time understanding, or still don't understand. What should we talk about next? Give us a follow and leave us feedback.Follow Peter HarrisTwitter: https://twitter.com/thevcstudentLinkedIn: https://www.linkedin.com/in/peterharris1Instagram: https://instagram.com/shodanpeteFollow University Growth FundWebsite: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfundFollow Jon BradshawLinkedIn: https://www.linkedin.com/in/mrbradshaw/Instagram: https://www.instagram.com/mrjonbradshaw/Twitter: https://twitter.com/mrjonbradshaw

How to Find a VC MentorSome of the most successful people attribute their success to their mentors. If you want to speed up your learning process, find one! But the question is not only - how to find a mentor but what kind of mentor should you seek. Questions Covered in This Episode Include:How does an entrepreneur build his networkWhy is it important to find a mentorWhat kind of mentors should you seekHow service plays an important role in finding a mentorLet's discuss some real life examples where it has benefited usHow to find such opportunitiesHow to reach out to them in the best possible wayHow to have asks that are easy to respond toFollow Peter HarrisTwitter: https://twitter.com/thevcstudentLinkedIn: https://www.linkedin.com/in/peterharris1Instagram: https://instagram.com/shodanpeteFollow University Growth FundWebsite: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfundFollow Jon BradshawLinkedIn: https://www.linkedin.com/in/mrbradshaw/Instagram: https://www.instagram.com/mrjonbradshaw/Twitter: https://twitter.com/mrjonbradshaw

How To Start a Venture Capital FundIf you have ever wondered about starting a VC fund but felt overwhelmed. Jon speaks to Peter Harris who started a fund with his partner a couple of years ago. He breaks it down for us and shares his suggestions. Questions Covered in This Episode Include:Peter, you and your partner started a fund 7 years ago. How did you do it?Where did you start?How much does it cost?How is it structured? What is the process of raising the fund?Can you consider taking a bank loan?Are you responsible for contributing?Can you start one if you are not rich? How crucial is having a network of rich friends and family?What happens if you don’t have rich friends?What is front loading and how can you use it?What are some things to keep in mind when forming a fund?LegalCash flow considerations Ask why would they invest Follow Peter HarrisTwitter: https://twitter.com/thevcstudentLinkedIn: https://www.linkedin.com/in/peterharris1Instagram: https://instagram.com/shodanpeteFollow University Growth FundWebsite: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfundFollow Jon BradshawLinkedIn: https://www.linkedin.com/in/mrbradshaw/Instagram: https://www.instagram.com/mrjonbradshaw/Twitter: https://twitter.com/mrjonbradshaw

How do VCs Make Money?Some of you might be intrigued to understand how a VC fund runs. How do they make their money? Peter breaks down all that in this episode and all clear out the air if VCs are rich.Questions Covered in This Episode Include:Peter, everyone wants to know how VCs make money? ( Carried interest and management fee)How important is it to be rich to be a Venture Capitalist?What is the average salary of a VC? (Partner/Analyst)Sometimes people criticise venture capitalists because they get rich off of management fees and not fund performance Does deal performance that you lead affect individual compensation?Are they overpaid?How does the compensation structure affect how you make invest decisionsFollow Peter HarrisTwitter: https://twitter.com/thevcstudentLinkedIn: https://www.linkedin.com/in/peterharris1Instagram: https://instagram.com/shodanpeteFollow University Growth FundWebsite: https://www.ugrowthfund.com/LinkedIn: https://www.linkedin.com/company/university-growth-fund/Instagram: https://instagram.com/ugrowthfundFollow Jon BradshawLinkedIn: https://www.linkedin.com/in/mrbradshaw/Instagram: https://www.instagram.com/mrjonbradshaw/Twitter: https://twitter.com/mrjonbradshaw