We continue our VC Fundamentals series with Company Building — everything that happens after you write the check. We catalog the different categories, strategies and tactics for VCs to "add value" to their portfolio companies, from direct involvement to portfolio services to simply doing nothing (often better than many alternatives!). For both of us, this is the best and most fun part of being an investor, and we hope that shines through in this episode. Here's to building great companies!
Sponsors:
Topics Covered:
The goals of Company Building:
(Obviously) add value to your investments
(Less obviously) increase your odds of finding/winning your next investments
The four categories of company building:
"Direct" work by the GPs
"Active" platform and portfolio services teams
"Passive" brand halo effect
Simply "doing nothing"
Activities you actually do:
Board work (both governance and strategic/operational planning)
Planning and orchestrating future financings and exits
Recruiting, closing deals and "selling"
Cofounder/executive disputes and departures
Pivots and company shutdowns
And perhaps the most important company-building advice of all: Don't Freak Out.
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