1. Internal transactions; 3 legged stool = Decision making auth, performance eval, comp. structure #MCF10 Shane:VCs invest in less than 1 % of new companies Zider:"On average, good plans, people, and businesses suceed only 1 in 10 times" Odds?! The Horizon Problem: Time lag between action and result/feedback. #MCF10 "VC's prefer A-teams with second class ideas than B-teams with first class ideas - it is all about execution" But remember: 98% of stock price chances can in some way be explained by macro factors. #MCF10 The VC must address information asymmetry (adv. selection, moral hazard), slack and general risk (market, tech, team, etc.). #MCF10 What gets measured gets done! What is worth measuring? Does it reflect a strategic intent? #MCF10 You need to plan on an exit. Trade sales, IPO, Systemic Liquidation (Solvent closing), MBO/LBO, Private Equity Fund. Remember links between strategy and budgets. Text doc and spreadsheet must work together, when handing in the business plan to a VC! #MCF10 One tweet summary: Cash>everything else, VC fills void btw banks&mrkt, invest in high growth indust., adress risk w/ contracts etc.
