20VC: Why It Is Good Company Funding Has Been Down 6 Quarters In A Row, Why Unanimity Does Not Work In VC Decision-Making & Why It Is Dangerous To Be A Spreadsheet Investor with Scott Raney, Partner @ Redpoint Ventures
Posted on 17th May 2017 by Harry
Scott Raney is a Partner @ Redpoint Ventures, one of the valley’s leading multi-stage funds with over 434 investments, close to $4bn in assets under management and 136 IPOs and M&A. At Redpoint Scott has made investments in the likes of Twilio, Stripe and Heroku, just to name a few. Prior to Redpoint, Scott was responsible for new products at NorthPoint Communications, and before that Scott worked at Bain & Company helping clients in the private equity and technology industries.
1.) How Scott made his first forays into the world of VC and came to be a Partner @ Redpoint Ventures?
2.) Why does Scott think it is a good thing that we have seen company funding down 6 quarters in a row? What does this mean for startups trying to raise?
3.) What 2 types of companies will continue to find it easy to raise in these markets? What types of companies will struggle to raise? Is there market cyclicality or a return to normal more sustainable times?
4.) Why are investors a lot less willing to take future fundraising risk? How does Scott view the optimal investment decision-making process for a VC partnership? Why does unanimity not work?
5.) Why does Scott believe it is dangerous to be a spreadsheet investor? With the bar being higher today, what are the milestones that startups need to reach in order to be attractive from an investment perspective?
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