NVCA facilitated a recent research around what matters in a VC firm brand – both what entrepreneurs value, versus what VCs think is important.
Note that this is a US based study. Overall the study reinforced the importance of VC firm brand, but highlighted the differences in what entrepreneurs value (entrepreneur friendly, trustworthy, collaborative, value add) versus what VCs focus on (thought leadership, hands-on). Third party recommendations and word-of-mouth amongst entrepreneurs matters. Entrepreneurs seem to be far more influenced by lead partner reputation and next by firm’s reputation (where as VCs think of those and portfolio reputation as relatively balanced triad). Message for VC firm and partners – develop your brand in line with what your audience wants; Be out there.
It will be interesting to get perspectives from entrepreneurs in India on where their views might be different. For example, the whole incubator/accelerator phenomenon in India is extremely “hands-on” and entrepreneurs seem to appreciate it (or is it just lack of choice?) How are the influencers in emerging market like India different from those in a developed market like US?
Opinions?
- Promoters or Entrepreneurs – A choice for Private Equity players - August 3, 2019
- Startup Marathon Mindset - March 25, 2019
- What’s your Customer Culture? - March 4, 2019
The investment model to copy (“Shuiti”) for India ?
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From an outsider looking, Quality, experienced international CEO’s message maps will attract the VCs it will be you searching them out, piling $$$ into such as flipkart does not necessarily create sustainable economies of scale in markets restricted by GNP.
“If you’re in the elite, “use it or lose it.” You have a privileged ability to mobilize capital. Really know the formula that got you there and vigilantly watch for signs of change.”
Read Here.
Talking about positioning not capability:
I think that a lot of folks of my age won’t be looking for VCs for thought leadership naturally…
I will tell you this by simple example:
Fred Wilson might have added more value to entrepreneurs than any other Indian VC. CEOs will NATURALLY consider Fred Wilson any day for more help in thought leadership but not Indian VCs.
Nothing to do with capability..