Venture Capital 101 : The Guide for Everything you Need

Pages
- Venture Capital 101 : The Guide for Everything you Need to Know
- Table of Contents
- What is Venture Capital?
  Venture Hierarchy
  Who Invests Where
  Funding Stages
  How Do VCs Make Money
- On Breaking into Venture Capital
  What VC Look For: Skills You Should Have
  Where Should I Work?
  On Sourcing Companies
  How To: Source Startups
  How to Cold Outreach a Founder (Template)
  On Writing Investment Memos
  How To: Write an Investment Memo
  Investment Memo Template
  On Evaluating Companies/ Due Diligence
  How To: Evaluate Startups
  Building a Brand
  On Finding A Venture Job/Internship
  Venture Job Board
  Venture Capital Cold Outreach (Template)
  Venture Scouting & Fellowships
  How to Ace the Venture Interview
- Congrats! You Got the Job - What to Expect & How to Succeed
  Venture Compensation $$$
  How to Prepare for Your 1st Day on the Job
  A Day in the Life of a VC
- Templates, Resource, Podcasts & More
  Templates
  Investor Deal Flow CRM Template
  Personal CRM Template
  How to Cold Outreach a Founder (Template)
  Venture Capital Cold Outreach (Template)
  Resources & Links
  Venture Capital Terms 101

Venture Capital 101 : The Guide for Everything you Need

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How To: Evaluate Startups

When I was at GSV, our venture framework on determining companies to invest in was categorized by the 5 P’s. You can read more about it

here⁠

Although I no longer work at GSV, their 5 P’s, their simple framework on how they evaluate thousands of companies each year has stuck with me in my journey of talking to founders. You can read about their definition of the 5Ps but here is my top 4 P’s.

People: The most important thing I look for is the team and founders. Ideas and businesses can change but in the early stages, the team is what is the most important. I want to invest in people that not only can be a great leader when the company is doing well, but an even better leader during tough times. I also want to invest in people who have the right skills and experience to execute on their vision. I want to invest in people who are passionate about their business and have a clear vision for what they want to achieve & invest in people who are passionate about their customers and solving their problems.

Product: The second thing I look for is the product. I want to invest in products that are solving real problems for real people. These products should have a clear value proposition and are differentiated in the market. I also want to invest in products that have a great user experience and are easy to use.

Potential: Invest in the moonshot companies. The best VCs are visionaries that are able to “predict the future” in some sense or the other. What could be a market that doesn’t exist today could be the next big thing 5 years from now. Don’t be afraid to invest in companies willing to swing for the fences.

Purpose: I want to invest in companies that have a clear purpose and are making a difference in the world. I want to invest in companies that are solving big problems and are making a positive impact that will have lasting impact on how our world operates.

Check out other Investment Fund Rubrics

⁠

Argon VC⁠

⁠

Forge Venture Rubric⁠

⁠

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