I'm totally bogged down right now from my current workload between my job (CRE lending - bulge bracket) and studying for the GMAT. I came across an open analyst position at a VC firm that I would love to work for that is involved in finance, technology, and real estate. This company has been the only VC firm i've keep my eyes on aside from looking at other traditional real estate PE firms once I finish with my GMAT in 2 months.
It's been awhile since I dove deeper into learning the fundamentals how the venture capital industry underwrote deals and how their models work. Would anyone be so helpful to point me in the right direction where I can get up to speed on modeling and due diligence for the venture capital world?
Also, any PDFs/papers/research/memos related to the VC world would be awesome.
I'd subscribe to the following 3 newsletters: Stratechery Pro Rata (recent PE/VC deals) CB Insights
Those will give you good insight into what is happening in the market right now and how to think about a scalable technology business.
Would also research the trendy buzzwords these days namely: AI, blockchain, machine learning.
Also would recommend learning more about the concept of "network effects". Very important concept in VC investing and technology businesses in general. Union Square Ventures has some good articles: https://www.usv.com/blog/investment-thesis-usv
Thanks packmate , those are all great resources that I do already follow. I also enjoy listening to Exponent.
I haven't run through the math behind cap tables and other venture related valuation exercises. Would you be able to point me in a direction where I could find a blog or website detailing how these valuations work? For the RE side, adventuresincre.com is a great resource for learning how to model various real estate transactions, so hoping to find something equivalent on the VC side.
I don't have a specific website for learning about cap table valuations specifically, but this link will provide you a fairly well organized excel model to work through cap table analysis.
http://www.s3vc.com/resources/s3-venture-cap-table-template/
Thanks packmate
One:
Here is an older thread (August 2017) about real estate VC that another guy and I wrote some lengthy replies in.
Two:
Some books you should read:
The second one is a bit lengthier and more academic, but it has a relatively strong section on structuring.
Three:
Other web resources:
Four:
Shift the way you think about venture. I don't mean this derogatorily. Maybe you're pressed for time and it's an informal forum, but the way you write conveys that you know little about VC. Deals aren't "underwritten", they're "done" or "funded". 'Due diligence' is a term few people utter. It's 'industry research' and 'reference checks'.
What I'm trying to say is that it's really important to show in all your interactions with the fund that you 'get it'. VC is such a qualitative game. They need to know that you understand all the nuances, speak the language, are conversant on not only deals and industry trends but also on the how people talk ... because that's a thing founders assess. If you look like a square, the fund isn't going to want to hire you because the fund doesn't want to look square.
Read this post I made also in August 2017.
Hey APAE,
Would you happen to know of a good model online that incorporate option pricing? Thanks!
Term Sheet is now written by a lady named Polina Marinova. Erin left about 7-9 months after Dan.
Thanks
You've already got a badass list from APAE up there.
If you're looking for some more layman reading:
Quora.com is a great treasure trove of VC information. Specifically insights directly from the mouth of the horse of some top VCs. SaaStr is very focused on SaaS, but it's ran by Jason M. Lemkin who is a Venture Capitalist and two time founder.
Those two resources are great for more general reading, and less deep dive.
mastering the vc game by jeffrey bussgang and the masters of private equity and venture capital by robert finkel and david greising are other good books to add to what APAE already mentioned
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