Archive | Venture Capital

Investing in early stage startups.

Revisiting What I Know About Switching Costs & Startups

Switching costs are another aspect of a startup’s business model that I pay attention to. Together with Network Effect, Intangibles, Cost Advantages, and Efficient Scale they form the source of economic moats.1 In this post I will discuss switching costs; what they are, how they develop and evolve, and how switching costs can help or […]

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Question Everything; My Remarks At FOCUS100 2014

Background: I gave these remarks at Digital Undivided’s FOCUS100 2014 Conference which was held between October 3rd and October 4th in New York City. A number of investors were invited to explain to the audience how they ought to pitch venture capitalists in order to win funding. Digital Undivided is a social enterprise that develops programs […]

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How an Investor’s Behavioral Traits Might Completely Derail Your Pitch – Part III

This post continues the discussion about how behavioral psychology might affect the outcome of a meeting at which a startup team is pitching to a potential investor. You can get caught up by reading part I and part II. My goal is to offer some advice on how entrepreneurs pitching to early stage investors might prepare to […]

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How an Investor’s Behavioral Traits Might Completely Derail Your Pitch – Part II

This post continues the discussion about how behavioral psychology might affect a pitch. You can get caught up by reading part I. My goal with this series is to offer some advice on how entrepreneurs pitching to early stage investors might prepare to mitigate the problems that might arise due to the behavioral traits of […]

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How an Investor’s Behavioral Traits Might Completely Derail Your Pitch – Part I

Many startup pitch meetings start out on a promising note, but things fall apart during the conversation between the startup and its prospective investor. Sometimes this could have been prevented if the startup team had studied a little bit of behavioral psychology beforehand.1 Traditional finance theory tries to tell us how investors should behave, if […]

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In Early Stage Investing, Should Investors Bet on the Jockey or the Horse?

The horse is too small, the jockey too big, the trainer too old, and I’m too dumb to know the difference. – Charles Howard, owner of Seabiscuit addressing comments about his horse, Seabiscuit and the team of people he had assembled to train and race Seabiscuit. Red Pollard was Seabiscuit’s jockey and Tom Smith was […]

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Why You Should Apply The Less is More Rule of Seduction When You Meet an Investor

Two weeks ago I had a meeting with an entrepreneur who has built an interesting startup. It was our first time meeting one another to discuss his startup. Before we met I had spent about 10 to 15 minutes studying the startup’s website. After doing that I sent him a list of questions that occurred […]

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