How Hambrecht Uses Machine Learning to Up its Venture Hit Rate 3X

Venture capital is a “hit business.” The relatively few hits pay for the flops. And it's the tantalizing possibility of a mega-hit that animates the industry, that keeps investors dreaming, prospecting and writing checks. For venture capitalists, it’s the hits and the mega-hits that make the high flop rate tolerable. But is frequent venture failure inescapable? Could a probabilistic approach…


Cool Kids in the Kingdom of Venture Capital

The kingdom of venture capital was largely built on the grounds that a startup’s founding team, above all else, is the greatest predictor of success. Success breeds success, so the prophecy goes. First and foremost, most VCs seek startups with founding teams that have been successful (i.e. been acquired or gone IPO) in the past. These founders are the “cool…


Guest Post: Filling the Black Hole to Rejuvinate the US Economy

Guest Post by author Zak Cassady-Dorion

The black hole of financing, the ‘missing middle’, and the ‘opportunity gap’ all refer to the same thing.  There are a huge amount of entrepreneurs with great ideas and great businesses who are not able to grow sufficiently because they don’t have access to capital.  Properly funded, these businesses could go a long ways to help rejuvenate the US economy.  According to one source, over 700,000 fledgling companies that start in the USA each year don’t qualify for traditional bank, PE or VC financing.  Even for the handful that do qualify, the terms of the deal are often onerous and collateral requirements keep them from bringing their innovative solutions to the market place. (more…)


Revenue-Based Funding by Corporations

There’s a difference between traditional venture capital and corporate venture capital.  While standard VCs are primarily concerned with financial goals (i.e. a high IRR%), corporate venture capital (CVC) groups such as Intel Capital, GE Capital, and the J&J Development Corp. have dual goals: financial and ‘strategic’ value.  CVC investments must somehow assist the core business of their parent companies in addition to creating financial returns. (more…)


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