Sublime

Bill Payne and I both believe the Scorecard Method is the most useful approach to setting a baseline valuation. The Risk Factor Summation Method is good as a supplemental methodology because it considers factors not always included in investor considerations. The other three methods are also valuable, but should be used in combination with the Scor

Given the inexorability of math, therefore, there is only one other way to hit the 30x target: invest at a lower valuation. So if the initial valuation we agree upon with the company is, say, $1.5 million, our 30x target means that the company will need to be acquired eventually at a terminal valuation of $45 million. And guess what? It turns out t

Angel investing is an area in which the so-called Law of Large Numbers applies. This is a theorem that describes the result of performing the same experiment many times. According to the law, the average of the results obtained from a large number of trials should be close to the expected value, and will tend to become closer as more trials are per

In her 2014 book Blockbusters, Harvard Business School professor Anita Elberse showed how mega hits have become more important across the whole entertainment industry. “Smart executives bet heavily on a few likely winners. That’s where the big payoffs come from,” she writes.

running things, strategy, and deals.

Measured Participation established four broad investment categories:1. Highly recognized growth.2. Less recognized growth.3. Moderate growth.4. Cyclical growth.Windsor participated in each of these categories, irrespective of industry concentrations. When the best values were available in, say, the moderate growth area, we concentrated our investme

THE POWER LAW OF VENTURE CAPITAL