10 lessons learned breakfast with a venture capitalist
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The document outlines insights from a breakfast meeting with venture capitalist Shawn Grubb, emphasizing key points about venture capital strategies. It highlights the focus on exit strategies by VCs, the high costs of VC funding, and the importance of legal representation. Additionally, it notes that VCs are motivated by incentives linked to fund management fees.
10 lessons learned breakfast with a venture capitalist
- 1. LEARNED: BREAKFAST WITH A VENTURE CAPITALIST SHAWN GRUBB WHEN: ON OR ABOUT MAY 22, 2019 WHERE: THE NATIONAL EXEMPLAR – MARIEMONT, OH 1. Many VCs will promise to take you “public” – but few can actually make it happen 2. $100M might be the magic IPO number – but the industry might be as important 3. A VC is focused on the exit strategy – their strategy, not necessarily yours 4. For a VC – selling to another VC is a viable exit strategy 5. VC funding costs 25 to 35% YOY (on average) 6. VCs abhor risk 7. Be prepared to spend plenty on a solid attorney 8. VC Fund managers receive a 2-3% fee on the size of the fund - thus are incentivized to create a bigger and bigger funds