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Ryan Caldbeck @ryan_caldbeck
, 10 tweets, 3 min read Read on Twitter
1/ What drives decisions for (bad) VCs. This is going to be fun.
2/ Who else is in the round: At least half of VCs actively just admit they are influenced by who else is in the round. Why? They have a lot of reasons related to more smart people around the table. I’ll give another: you don’t get fired by co-investing with @sequoia
3/ What their partners think: Not a lot of VCs have the courage and capacity to do a deal that their partners don’t like. That deal goes bad and it isn’t a joking “I told you so.”

It’s “Thanks- let’s make you a venture partner for a year as you transition out.”
4/ What entrepreneurs they respect think: VCs think entrepreneurs that have done well are really good at spotting talent and opportunities. I would love to see data on founders being better stock pickers.
5/ What @TechCrunch thinks: Hype. I know everyone is laughing and no one believes this is real. And then there are a portion of VCs that are staring at their shoes, sheepishly kicking the dirt right now because they know they are more likely to invest if there is good TC article.
6/ KPIs: Yeah…….this low. Key Performance Indicators (ideally revenue but usually some other derivative metric) are something VCs still look at to make sure they aren’t completely off base- but it doesn’t play as big of a role as 2-5.
7/ Market size (as long as it resonates with their perception): Tell them that drones will be a $10b+ mkt in a few yrs? Ohhs and awwws. Tell them personal care is a $100b+ market today? Crickets. (they dont care or believe you).……
8/ Were there 3 random interactions in the previous week with the investor and product or the investor’s spouse and the product? Here is my $5 bet. VC hears about a product at Madera, from another entrepreneur, and from their spouse? 8x more likely to invest after those 3 pts.
9/ Other awards/press/hype- just reinforces the messages above. Ton of influence by hype in tech vc. Would love to see the data on this too.
10/ The existing system is broken.

It is that clowny decision making criteria that helps give me more conviction that systematic VC is the future.

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