Discussing global investments, storytelling & salesmanship, and which emerging markets to keep an eye on.

  1. Build what you know and optimize on key learnings. Given his experiences internationally, as a founder, and as an investor at Plug and Play, Mo built Adapt to be a generalist pre-seed and seed stage fund with a global mandate that can invest within 24 hours.
  2. When investing internationally, learn about the regulatory bodies of international markets and be sure to understand consumer behavior and technology adoption in emerging markets.
  3. Know how to swim without learning how to swim. As a founder or emerging manager, learn quickly and be adaptable to the curveballs thrown your way.


Talking near monkhood, the Midwest & the Wild West of private market investing

  1. Don’t follow in anybody’s footsteps. Build a thesis and venture capital firm that is authentic to you, your passions, and your experience, not just what you see in the market
  2. As a VC fund manager, provide a key value add for your portfolio companies. Push your founders to grow outside their comfort zone as a mission-aligned partner for your investments as opposed to just a fund manager or venture capitalist.
  3. When building a 506(c) or rolling fund, use your network and connections to publicly advertise to potential LP investors. …


Talking secret clearance, Twitter, and diamonds in the rough

Mac Conwell of RareBreed Ventures
https://www.bizjournals.com/baltimore/news/2020/10/19/investor-from-tedco-launches-early-stage-vc-fund.html


Part 4: Managing Your First Fund as a Business and Building Fund II, III and Beyond

  1. 95% of VC funds fail. In addition to your passion and commitment, bring operational experience to juggle investing, fundraising, and running your small business.
  2. In the VC model, labor is a scarce resource. If you build a larger Fund II or III, consider the toll a higher volume of deals will take on your labor force.
  3. Most VC funds are under-diversified. You’re going to learn as you invest and the world will evolve as well — give yourself enough flexibility to readjust, adapt, and take advantage of the opportunities that come your way.
  4. When you’re in Fund I, you’re…


A Guide For Emerging Managers

Part 3 of 4: Pursuing Leads & Getting to Yes

  1. Tap into your 1st, 2nd, and 3rd degree network to cast a wide net when looking for potential investors to build support before your search becomes more targeted.
  2. Set deadlines and create a sense of urgency to quickly build momentum and get LP commitments.
  3. Communication is key when fundraising and managing your fund. Even if a lead goes cold, foster that relationship and stay in contact.


Taxation services built into your private equity software

  1. Give early access to your CPA to rough out your return before your K-1 comes in.
  2. Make sure your CPA knows private market investor filings, IRS Section 1204, and 1244 for capital gains, better tax discounts, and interest on loans.
  3. Use software to keep your K-1s in one place, and provide access for an accountant to upload and download the files needed, view your schedule of investments, and registrar.
Photo by Markus Winkler on Unsplash


Here are 5 keys to choosing the right investment software for you.

Choose a service that:

  1. Automates current events and news about your portfolio companies & potential investments.
  2. Works with your budget. Emerging managers don’t have a lot of cash to spend, so make sure the value outweighs the cost.
  3. You can imagine logging into daily. Onboarding time and user experience are important considerations.
  4. Provides actionable insights for you as a private equity investor so you can make better, faster, and more informed decisions.
  5. Integrates with your tool stack. Eliminate manual processes and make sure all of your information is in one place when needed.


How do you manage your portfolio post-investment, monitor effectively, and add value to your portfolio?

  1. Use a collaborative and connected tool that automatically works in the background to collect data and make your post-investment management effective and efficient.
  2. Use a service that makes sure you never lose deal docs, pitch decks, or legalese. Bonus if it’s integrated with your other post-investment tools.
  3. Use data collection services that track startup KPIs automatically so you don’t have to request updates all the time.
  4. Execute timely actions and be a value-add investor. It’s best to receive regular updates on your portfolio and in platforms that you use the most, like email.
Photo by fabio on Unsplash


How to go beyond a check as a private equity investor

  1. Investors can’t really correlate what success is with a company until it happens, but you can always help. That means going beyond the check as a consultant, an advisor, a mentor, a shoulder to cry on, or anything else a startup might need.
  2. Track KPIs to share timely insights and signals with the team. This way you can connect before there’s an issue, get ahead of the problem, and have a hand in resolving it.
  3. Share your passion for the product and make timely introductions to potential co-investors, customers, and employees.
  4. Don’t miss out on a round. Understand cash…


Important KPIs for any early stage investor

  1. The KPIs to track and figures to hit when performance tracking can change based on stage and sector. It’s more important to understand how the metrics serve the specific goals of the startup and whether they indicate that the company has the growth, sales, and customers to reach the next level before the zero cash date.
  2. For early stage investors, it’s important to learn how “revenue” is tracked when you don’t have any. For startups, pick three metrics to measure early & often to quantify value and product-market fit.
  3. Be sure to understand their sales method. There is not…

Theron McCollough

The Founder VC; founder/CEO at fiifi.co; past Managing Director @SVB_Financial #startups, Investor at Forum Ventures

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