This feature from TechCrunch looks at the top 10 cities worldwide for supergiant VC rounds for over $100M. US-based companies have raised 168 supergiant rounds than their Chinese counterparts, but Chinese companies raise much bigger rounds. For this week’s posts, click on the paragraph links. >>>
Sramana Mitra: What is the definition, in your case, of late seed and early Series A? What metrics are you looking for?
Kelly Perdew: Typically, there’s an MVP. They’ve found a problem where they’ve either built a solution for and have started selling that to more than one client. They’ve raised some money. Usually, it’s in the $200,000 to $500,000 range that helped them to get to that point. Frequently, that’s friends and family, credit cards, and maybe one or two angels.
Interestingly enough, a lot of our deal flow comes from the ecosystem itself. Techstars, YCombinator, and 500 Startups are already curating lots and lots of entries to select the company that they think could be the most viable. Criteria in terms of where we want to invest is they have some revenue >>>
Sramana Mitra: It sounds like you’ve created more of a content business.
Nick Shaw: Yes. I would say we’re in the education business. We give people the education on what they need to eat, when, and how much.
Sramana Mitra: An online learning kind of program. What’s the form factor of how you distribute this?
Nick Shaw: Early on, it was all Excel files. We recently changed it to PDF format. It was originally all on email. We’ve since changed. Now it’s all downloadable right on our website. A person orders, and within a few minutes, they’re able to get their files. It’s right in their account. >>>
By Guest Author Marylene Delbourg-Delphis
Peter Cappelli, Professor of Management at Wharton School and Director of the Wharton’s Center for Human Resources endorsed Marylene Delbourg-Delphis’ book Everybody Wants to Love Their Job: Rebuilding Trust and Culture, saying “The energizing culture of the start-up world can be imported to even the biggest organizations. A powerful case for bringing the human element back into management.”
Startups are inspirational for many reasons. The “human element” is definitely one of them. >>>
Marylene Delbourg-Delphis is a serial technology CEO, executive consultant and board member who has focused on avant-garde products throughout her career. >>>
Sramana Mitra: Are you chasing unicorns?
Kerry Rupp: No. The other thing about our business is that we are looking for capital-efficient companies that aren’t likely to need a Series C and maybe not even a Series B to get to their exit. We are expecting these companies to be able to see an acquisition exit in a three to five-year window. It’s really in the range where most exits happen. The data will show you that despite all the excitement of unicorns and the potential of the few that make it, most exits happen between $40 million and $70 million.
We’re looking for companies who can see a pathway to being large enough that they can be appealing acquisition targets for $100 million exits in a >>>
Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Kelly Perdew was recorded in June 2018.
Kelly Perdew is Co-founder and Managing General Partner at Moonshots Capital, a firm that has a unique investment thesis of supporting military veterans. Very interesting insights.
Sramana Mitra: Let’s start by having you share a little bit about your background as well as the background of your fund. What is the investing focus? How big is the fund? What kind of investments are you making? >>>
Sramana Mitra: What did you learn about how many clients could each coach service?
Nick Shaw: A lot of it depends on the coach. All of our coaches were either in school or professors. Currently, we have over 25 coaches – 20 of them have Ph.D.’s, seven are registered dieticians and one is a family physician. This isn’t necessarily their full-time job. How many clients they can take on varies a little bit. Some may want to keep it relatively small. A good rough number to cap it at is probably a hundred at any given time. That would be an outlier. The average is 40 to 50.
Sramana Mitra: Is there anything else that is strategic in how you have scaled this business besides figuring out a reliable way to pair the customers with coaches who can then customize their training routine for this $100 to $150 per month price point?