Posted by: Dr Churchill | November 12, 2012

100x returns

People ask me a lot of questions about what is fundable in Venture Capital’s daily routine?

What is the intelligence at the Business level of Venture Capital?

What are the technology companies one can safely gamble on?

What are the valuations of successful start ups, pre-money, post money, seed rounds vs exit value?

And what is the preferred gambit to success?

All oxymoronic questions but human beings are fundamentally creatures of contradictions and I have to answer them none the less in earnest.

So here it goes:

Ventures are an interesting thing…

It is a pure numbers game when an infinitesimal number of the entrepreneurs get any funding at all.

Clearly far less than one percent of submitted companies and Biz-plans ever get answered back and a tiniest even percentage ever get funded.

That is when you are outside looking in.

From the inside it’s a totally different picture.

There is a dearth of quality companies worth fighting for — let alone throwing money at to grow.

It’s like Life. And it’s only fair to be like species’ adaptation. Because “The fittest” will always survive. Not the strongest, not the smartest, not the prettiest or the ones with most money, most downloads, most talent, most shit — but the ones most able to CHANGE.

Got That?

Simple eh?

Yet the super analytical engineering types out there don’t get the majesty of Life’s strategy.

So to those of you failing to understand this:

Lighten Up.

Don’t be a courtier.

Be not afraid to suck.

Don’t make a practise of it, but we all suck from time to time.

Pano says: Productize – Iterate – send it out the door.

Follow the three Panoisms and remember the three Human Greatness endowments:

Three Panoisms

1) Know thy Market

2) Know thy Product

3) Know thyself

Three Human Greatness Endowments:

A. Be Courageous

B. Have a Heart

C. Don’t Forget to use that HEART

That’s All.

Now Go out and Execute on that plan you have – fully knowing that everything is at stake – and that the world will change all that.

Same as You want to change the world – See who is stronger.

No Worries.

Sense, feel, love and open up to what is great out there.

Be Organic.

Don’t be a Mindfuck.

Follow you heart – it’s got more intelligent neurons going to your brain that the other way around…

Nobody’s gonna judge you.

Be a little Zen about it.

Let things happen to you instead of micromanaging the events of your existence.

Strategize carefully all you want.

If only to learn the skills of strategic thinking but be aware that Life will trash all your carefully laid plans and will get you laid instead.

Sit back and enjoy the moment – sex is good for you – and the oxytocin makes you smarter to deal the next go round.

But when thinking VC as a way to scale… mimic nature.

Don’t be needy.

To augment your chances best to bone up on the Math of money dynamics.

Understand Value Exchange…

Vision the Future of your enterprise…

Strengthen your basic arithmetic of what it takes to game the system…

Learn from all – Do the cool stuff all advisers tell you and Coach yourself to exhaustion…

But then forget all of it.

And only then you might get a glimpse of the Future…

Because the way to see the future is to create it.

And the best way to do this is to not care a bit about getting funded …

but rather built a product people will want to use and pay good money for this or

create value in the ecosystem you are pursuing.




I know it’s counterintuitive but there You have it.

Intelligence isn’t always vested in the herd mentality either.

Be an outlier.

However, don’t drink all the Cool Aid by yourself either.

Put down the straw and stop snorting whatever it is that keeps you up all night coding…

Tread Carefully if the Business or Product doesn’t have a 10X return on seed investment upon exit or it promises an 100X return on the Biz Plan.

As always the TRUTH is in the middle.

The Golden Rule of Investing in Ventures is somewhere in between

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