Venture capital is a simple business but it’s not an easy business. When a new analyst or associate joins us at AgFunder, it usually takes 9-18 months to calibrate to this reality. The most frequent mistake I see founders and new VCs make is that they focus too much on the idea. They focus on the utility of the product or service without thinking about how big it could. For VC funds, outcomes generally need to be really big, especially when you factor in the high failure rate of early-stage startups. This puts ultimately puts investments into two buckets: those that are “venture backable” and those that are “not venture backable”.
The Tyranny of Venture Capital Math
The Tyranny of Venture Capital Math
The Tyranny of Venture Capital Math
Venture capital is a simple business but it’s not an easy business. When a new analyst or associate joins us at AgFunder, it usually takes 9-18 months to calibrate to this reality. The most frequent mistake I see founders and new VCs make is that they focus too much on the idea. They focus on the utility of the product or service without thinking about how big it could. For VC funds, outcomes generally need to be really big, especially when you factor in the high failure rate of early-stage startups. This puts ultimately puts investments into two buckets: those that are “venture backable” and those that are “not venture backable”.