A good overview of what you would do at a VC firm.
“All private equity groups go about due diligence in their own way, but there are a few key areas entrepreneurs should always expect. At Blackhawk, our due diligence process focuses on three primary areas: market, technology and team.”
Here’s a profile and summary of the von Liebig Center. We are currently in the process of fundraising.
So all that talk about the VC industry’s struggles won’t go away as home run investments are still few and far between. Here’s yet another article on the struggles of the VC industry, particularly in the area of IT.
“..home runs are increasingly elusive. And venture capital is a home-run business, where the top 10% firms make up nearly 80% of the returns. ”
So if 90% of the VC firms are only getting 20% of the returns, that must mean they are downsizing and cutting back. If they are cutting back that means that they may be hiring a different breed of associate - a cheaper one, one that does not have an MBA. So will this pre-MBA VC associate become a new hiring trend?
When I think of Canada, maple syrup and mullets on skates are the first things to come to mind. However, since valuations for domestic ventures have been steadily increasing the past few years in the US - a result of too many VCs and too few breakthrough ventures - Canada (namely Quebec, B.C, Ontario and Vancouver) is increasingly becoming a goldmine for undervalued ventures in cleantech, bioscience and IT.
Since the Canada’s VC industry is still rather nascent and its campuses are burgeoning with technologies AND Sand Hill Road is pretty crowded with Harvard/Standford MBA associates, maybe I’ll look for a gig out there?
Some of you may know that I am basically gearing myself for a career in venture capital. I have a little exposure to it, but I know theres many years before I can really contribute a lot of value. Like Guy Kawasaki says, along with many other people I’ve talked to, its something you do after you’ve built something or gained quite a bit of experience elsewhere. OK, no problem, I will do that. BUT, will this industry even be around after I learn the ropes??
VC is a struggling business, in the US at least, with many leading firms suggesting that you’d be better off buying an index fund than to invest in VC - “Less than 20% of the funds beat the S&P 500.” Details and other reasons for the struggle can be seen here.
This figure and other clues about the downfall of the VC can be seen at Paul’s blog, who is openly bearish about the VC biz.
So say the US VC industry is dying, will these characters be able to transition over to the rest of the world? Will they be able to adapt to the other cultures and ways of doing business elsewhere? Will they have a need to hire a bi-cultural fella like me?
I am going to find out what other VC’s think about the VC industry, domestically and abroad. Tune in.
