The merits of value investing, especially in public markets, have been long espoused — thats the stuff legends are made of in that domain. Even late stage private equity follows largely the same route. Venture investing, on the other hand, is all about having the right momentum — how fast can you go from no product to a beta to some customers to sales rampup. The difference perhaps arises due to higher state of uncertainity in venture markets, as well as higher return expectations.
The difference should be understood while pitching to potential venture investors. It is important to demonstrate and plan for momentum, rather than worry too much about the specific valuation, or try and give that up too early. Venture investing is not about getting a 10% lower valuation. Its about getting a 50% faster company.
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