venturecapital
/venturecapital6075
The home for Farcasters to discuss all things venture capital and early stage finance.
Seeing a resurgence of SPVs of SPVs...
This won't end well my friends...
This won't end well my friends...
[SAVE THE DATE] Our 2nd “VC OFFICE HOURS” at the Crypto Valley Association will be:
📅 on April 3rd, 2025 at 1pm CET (for 60min)
💬 with @luc
🔎 on the topics of “UX in web3 apps" (with a focus on crypto social apps & networks)
It’s your opportunity as a web3 founder to ask your burning questions in that regard. Register now (free) https://members.cryptovalley.swiss/events/175072.
📅 on April 3rd, 2025 at 1pm CET (for 60min)
💬 with @luc
🔎 on the topics of “UX in web3 apps" (with a focus on crypto social apps & networks)
It’s your opportunity as a web3 founder to ask your burning questions in that regard. Register now (free) https://members.cryptovalley.swiss/events/175072.
NEW "EUROPEAN FOUNDERS FELLOWSHIP"
Backed by 20vc, Adjacent, Point Nine
200k for 6.6%
You need to be <25y
https://www.projecteurope.co/
Backed by 20vc, Adjacent, Point Nine
200k for 6.6%
You need to be <25y
https://www.projecteurope.co/
pretty much 80% of what people complain about investing is just them not being able to fabricate IRR numbers really well
3887
Kartik
@slokh·3 days ago
pretty much 80% of what people complain about X is just them not being able to Y really well
Angel investors - you already have deal flow and experience. But every so often, there’s a deal you wish you’d known about.
"I’m just busy, I’ll get the next one," you tell yourself.
Stop.
Join Crossroads, the Farcaster-native angel group to invest in, enable, and amplify the next generation of founders.
"I’m just busy, I’ll get the next one," you tell yourself.
Stop.
Join Crossroads, the Farcaster-native angel group to invest in, enable, and amplify the next generation of founders.
Want to short-cut the process of raising from angels on Farcaster?
587819
Crossroads
@crossroads·4 days ago
Raising capital is tough - but building momentum and bootstrapping distribution? Even tougher.
Crossroads helps founders:
- Spend less time fundraising, more time building
- Go viral and attract early users
- Build credibility fast to jumpstart your raise
Let’s talk - before you’re thinking about raising.
Crossroads helps founders:
- Spend less time fundraising, more time building
- Go viral and attract early users
- Build credibility fast to jumpstart your raise
Let’s talk - before you’re thinking about raising.
From the Nomad Partnership Letters:
JUNE 30th, 2009
Simple, but Not Easy
"When Zak and I trawled through the detritus of the stock market these last eighteen months (around a thousand annual reports read and three hundred companies interviewed) we had four main choices: add to existing holdings, invest in new firms, invest in growth businesses, invest in cigar butts."
What strikes me: 1000 annual reports, let that sink in. The road to great investments is simple, but not easy.
JUNE 30th, 2009
Simple, but Not Easy
"When Zak and I trawled through the detritus of the stock market these last eighteen months (around a thousand annual reports read and three hundred companies interviewed) we had four main choices: add to existing holdings, invest in new firms, invest in growth businesses, invest in cigar butts."
What strikes me: 1000 annual reports, let that sink in. The road to great investments is simple, but not easy.
Last week, the Crypto Valley Association (CVA cryptovalley.swiss) Startup & Venture Working Group held its first "VC Office Hours". Watch the REPLAY 🎦
This was the first session the CVA held for this format since I joined as a new Co-Chair of this working group earlier in 2025.
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This was the first session the CVA held for this format since I joined as a new Co-Chair of this working group earlier in 2025.
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Calling it: this will be the first of a string of VCs going public over the next few years.
https://www.axios.com/2025/02/28/general-catalyst-ipo-venture-capital
https://www.axios.com/2025/02/28/general-catalyst-ipo-venture-capital
acquihires still get the fancy “exit” tag on a portfolio page tho!
3
Dan Romero
@dwr.eth·15:42 07/03/2025
9/10 Coinbase acquisitions are acquihires
12168
lawl
@lawl·00:41 07/03/2025
if there are likeminded risk seeking VC/angel motherfuckers out there who want to build evergreen crypto-culture HMU
"the normal mfer" is one of the best shots on goal at genuine world building in the crypto space and I would love help
we'll win regardless, but teamwork makes the dream work
https://youtu.be/cuqRwvBUpIU?si=_2Po5liVR4iWQYVh
"the normal mfer" is one of the best shots on goal at genuine world building in the crypto space and I would love help
we'll win regardless, but teamwork makes the dream work
https://youtu.be/cuqRwvBUpIU?si=_2Po5liVR4iWQYVh
Base Corp Dev scooping up tech and talent for pennies on the dollar.
you love to see it
you love to see it
2417
Rob Sanchez
@robrecht·21:17 06/03/2025
1020
JAKE
@jake·05:01 06/03/2025
I just discovered this blog post thanks to qrcoin.fun. The author is currently the leading bid. I enjoyed reading it and largely agree with it.
I myself am someone who has been resistant to raising VC in favor of experimenting more quickly and sovereignly, being flexible, frugal, and following my gut.
Feels right.
I myself am someone who has been resistant to raising VC in favor of experimenting more quickly and sovereignly, being flexible, frugal, and following my gut.
Feels right.
To complement my post from yesterday https://warpcast.com/rphgrc.eth/0x977ac9e8 about when a prospective LP asks, 'HOW WILL YOU HANDLE PORTFOLIO CONSTRUCTION AT SCALE?', I was notably thinking about the notorious "reserve strategy", i.e. how much capital a GP allocates from the fund to double down on existing portfolio companies.
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5/25: "Reading between the lines", 25 LP questions that signal their true intent about your VC fund.
When a prospective LP asks
"HOW WILL YOU HANDLE THE PORTFOLIO CONSTRUCTION AT SCALE?"
What does it really mean?
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When a prospective LP asks
"HOW WILL YOU HANDLE THE PORTFOLIO CONSTRUCTION AT SCALE?"
What does it really mean?
🧵 1/6
A common mistake I see founders make in pitches: confusing value prop with GTM.
Value prop = Why your product is compelling.
GTM = Your initial wedge into the market: who you target first and how you reach them.
Your GTM should be informed by your value prop, but they’re not the same. When explaining GTM, it’s worth reinforcing the value prop—but don’t conflate them.
Value prop = Why your product is compelling.
GTM = Your initial wedge into the market: who you target first and how you reach them.
Your GTM should be informed by your value prop, but they’re not the same. When explaining GTM, it’s worth reinforcing the value prop—but don’t conflate them.
Founders, when a VC passes without clear explanations, do you ask for a more detailed feedback?
If yes, does the VC play the feedback game?
If yes, does the VC play the feedback game?
Unironically before you become an Analyst or VC generally you should watch
> Silicon Valley
> The Rehearsal
> Breaking Bad
> Silicon Valley
> The Rehearsal
> Breaking Bad
5774
tldr (tim reilly)
@tldr·12:43 03/03/2025
Rehearsal Sn 1, Ep 1 should be required viewing for all Founders.
If you have ever suffered from overplanning, this can actually cure you. It puts the mirror of comedy right in front of your eyes and you can’t look at yourself the same afterwards.
It’s my favorite exploration of the nature of action, outside of Aristotle and Hannah Arendt.
Insightful ridiculousness. High art.
If you have ever suffered from overplanning, this can actually cure you. It puts the mirror of comedy right in front of your eyes and you can’t look at yourself the same afterwards.
It’s my favorite exploration of the nature of action, outside of Aristotle and Hannah Arendt.
Insightful ridiculousness. High art.
Might make sense for web3 startups more active in this channel.
March 6, 1pm CET, online
March 6, 1pm CET, online
17582
rphgrc.base.eth ↑🔵🎩😺
@rphgrc.eth·10:45 03/03/2025
The Crypto Valley Association (a.k.a CVA, cryptovalley.swiss) introduces "VC OFFICE HOURS" 📚
As incoming Co-Chair of the CVA Startup & Venture Working Group, I'm thrilled to be introducing and hosting for the CVA a new recurring event aimed at connecting web3 startups and scaleups with VCs.
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As incoming Co-Chair of the CVA Startup & Venture Working Group, I'm thrilled to be introducing and hosting for the CVA a new recurring event aimed at connecting web3 startups and scaleups with VCs.
🧵 1/4
The Nomad partnership investment returns boils down to a single business model:
“In the office we have a whiteboard with the few business models we know work and understand. Cotsco is the best example of one of them: scale efficiencies shared. Most companies pursue scale, but few share them. It’s the sharing that makes it so powerful. We often ask companies what they would do with windfall profits, most spend it on something or return cash to shareholders. Almost no one replies give it back to customers”
Drawing parallels: In crypto, protocols/products that share their scale network efficiencies with users, returning back the value to them to achieve longer term growth and retention, will win. This is the magic of crypto. It’s never been easier to “share” the efficiencies with users through tokens
“In the office we have a whiteboard with the few business models we know work and understand. Cotsco is the best example of one of them: scale efficiencies shared. Most companies pursue scale, but few share them. It’s the sharing that makes it so powerful. We often ask companies what they would do with windfall profits, most spend it on something or return cash to shareholders. Almost no one replies give it back to customers”
Drawing parallels: In crypto, protocols/products that share their scale network efficiencies with users, returning back the value to them to achieve longer term growth and retention, will win. This is the magic of crypto. It’s never been easier to “share” the efficiencies with users through tokens
"More than 80% [of AI companies] will be losing money for investors five years from now”
V. Khosla
V. Khosla
Let's ban from casts, from X/linkedin posts and from any type of research "average IRR, average MOIC/DPI" in venture capital.
Given power law, these are pure non-sense. We ALL know that. This is just for hypocritical naysayers.
Shall we?
Given power law, these are pure non-sense. We ALL know that. This is just for hypocritical naysayers.
Shall we?
"No one finds conviction in the data room". Particularly true statement for first-time GPs fundraising their debut fund.
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One piece of advice I come back to from @yekim.eth was: “Take the founder call, and use their product at least for 5 minutes.”
It's so simple, yet it's well beyond what most VCs do.
A lot don’t even take calls just because they don’t look good on paper, or in this case, on decks. Most of them don’t even use the product.
It's so simple, yet it's well beyond what most VCs do.
A lot don’t even take calls just because they don’t look good on paper, or in this case, on decks. Most of them don’t even use the product.
There's something that strikes me about Europe's tech ecosystem: our constant need to compare ourselves to the U.S. with regards to innovation, VC funding, and unicorn creation. 🛑 STOP
1/7
1/7
Most VCs have a “core thesis”, a set of trends they follow, sectors, and products they like to invest in. Their “bread and butter.”
Somewhere along the journey, the opportunity to invest into a company outside this scope may arise, it’s a test:
- Will you dismiss the opportunity?
- If you dismissed it, was it solely because it’s outside your scope, or is it truly outside your circle of competence?
- If you pursued it, was it because of external factors, or intrinsic curiosity to learn more about it and truly understand it?
Navigating within your circle of competence is hard, because moments like this test the boundaries. Are you going out of your circle of competence? Or are you expanding it?
Great investors that pass the test of time are always expanding, and “moving” their circle of competence to new territories. Make sure you do it, but be careful.
Somewhere along the journey, the opportunity to invest into a company outside this scope may arise, it’s a test:
- Will you dismiss the opportunity?
- If you dismissed it, was it solely because it’s outside your scope, or is it truly outside your circle of competence?
- If you pursued it, was it because of external factors, or intrinsic curiosity to learn more about it and truly understand it?
Navigating within your circle of competence is hard, because moments like this test the boundaries. Are you going out of your circle of competence? Or are you expanding it?
Great investors that pass the test of time are always expanding, and “moving” their circle of competence to new territories. Make sure you do it, but be careful.
“VC is all about figuring out which questions are the right questions to ask, and since we don’t have a clue what the right answer is, we’re very interested in the process by which the entrepreneur get to the conclusion that he offers.”
-- Don Valentine, Sequoia
-- Don Valentine, Sequoia
Has anyone built a pawn shop onchain?
> physical store
> loans all on mobile/embedded wallet
> repayment not required in person
> KYC managed onchain
> reputation onchain
> physical store
> loans all on mobile/embedded wallet
> repayment not required in person
> KYC managed onchain
> reputation onchain
Gratefulness feels like a key trait to develop as an investor
Sitting across experts to learn new concepts every week requires to step back, and be grateful that an expert is taking the time to teach you something new
Sitting across experts to learn new concepts every week requires to step back, and be grateful that an expert is taking the time to teach you something new
“Assistants” I have configured and use regularly:
- market research partner
- target user(s) personas
- sector specific diligence partner
- contract lawyer
- negotiation partner
I’ve tried unsuccessfully to create a financial analyst.
What am I missing?
- market research partner
- target user(s) personas
- sector specific diligence partner
- contract lawyer
- negotiation partner
I’ve tried unsuccessfully to create a financial analyst.
What am I missing?
What's one question you have about venture capital?
For anyone who wants to go raise a fund, here are a few things I’ve observed over the years investing as an LP:
Approach it just like a startup.
1. Make sure you have a compelling and differentiated value prop.
2. Demonstrate traction (i.e., a track record with DPI, not just paper gains).
1/3
Approach it just like a startup.
1. Make sure you have a compelling and differentiated value prop.
2. Demonstrate traction (i.e., a track record with DPI, not just paper gains).
1/3
A key concept from Margin of Safety: Buffet’s “Don’t loose money”
Let’s assume 2 investors. Investor A is charismatic, edgy, snappy. Investor B is thoughtful, slow, conservative.
Over a 10 year timeframe, investor A has returned 15% on average for the first 9 years, followed by a -20% loss on a market drawdown in the final year.
Investor B has been consistent, generating 12% returns on the first 9 years, followed by a 6% return on the market drawdown final year.
Who ended up making more returns? And who had less risk along the way?
The value of $100 invested in investor A would turn into $281, while, that same dollar in investor B would be $294.
It’s hard to grapple with this, investor A was in magazine covers, raised more money more easily, racked in more fees, and even made his LPs happier for a longer time (the first 9 years). Investor B went against the current.
Extrapolate over longer horizons and find this effect compounds further.
Let’s assume 2 investors. Investor A is charismatic, edgy, snappy. Investor B is thoughtful, slow, conservative.
Over a 10 year timeframe, investor A has returned 15% on average for the first 9 years, followed by a -20% loss on a market drawdown in the final year.
Investor B has been consistent, generating 12% returns on the first 9 years, followed by a 6% return on the market drawdown final year.
Who ended up making more returns? And who had less risk along the way?
The value of $100 invested in investor A would turn into $281, while, that same dollar in investor B would be $294.
It’s hard to grapple with this, investor A was in magazine covers, raised more money more easily, racked in more fees, and even made his LPs happier for a longer time (the first 9 years). Investor B went against the current.
Extrapolate over longer horizons and find this effect compounds further.
2/25: "Reading between the lines": 25 LP questions that signal their true intent.
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https://warpcast.com/rphgrc.eth/0x6f0cc66e
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https://warpcast.com/rphgrc.eth/0x6f0cc66e
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IMO space economy is more interesting than AI/crypto
Need some crypto companies to start launching payloads or rockets soon.
Need some crypto companies to start launching payloads or rockets soon.
Thoughtful thread by @rphgrc.eth about why people often prefer co-invests to fund LP allocations.
I’d add that there’s an often overlooked psychological draw to the “adventure” element of the asset class - as per its original name “Adventure Capital.”
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I’d add that there’s an often overlooked psychological draw to the “adventure” element of the asset class - as per its original name “Adventure Capital.”
(1/3)
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I came across an interesting discussion on "The Other App" recently that made me reflect on the dynamics of co-investing in private markets, and in VC in particular.
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1/25 | "Reading between the lines": 25 LP questions that signal their true intent.
When a prospective LP asks "COULD YOU REDUCE YOUR MANAGEMENT FEES?", what does it really mean?
When LPs begin negotiating standard market terms (usually 2/20 in VC) without first expressing strong interest in the core strategy, they're likely fishing for terms to pass around.
About this series of posts: https://warpcast.com/rphgrc.eth/0x6f0cc66e
When a prospective LP asks "COULD YOU REDUCE YOUR MANAGEMENT FEES?", what does it really mean?
When LPs begin negotiating standard market terms (usually 2/20 in VC) without first expressing strong interest in the core strategy, they're likely fishing for terms to pass around.
About this series of posts: https://warpcast.com/rphgrc.eth/0x6f0cc66e
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Over the next few weeks, I'll share insights from fundraising for OliveCapital.vc, that might help other first-time GPs evaluate their LP conversations more effectively.
What's one question you have about venture capital?
