If you have been bootstrapping and think you are ready for investors, you need to learn how investors think. First, please study our free Bootstrapping course and the Investor Introductions page. Then, start looking for entrepreneur – investor fit. Here is my conversation from 2019 with David Lambert of Right Side Capital Management. David Lambert
If you have been bootstrapping and think you are ready for investors, you need to learn how investors think. First, please study our free Bootstrapping course and the Investor Introductions page. Then, start looking for entrepreneur – investor fit. Today, I introduce you to David Lambert of Right Side Capital Management. David Lambert is Managing
Sramana Mitra: You gave a very good and interesting answer to a different question. The question that I was trying to ask you is across the deals that you see, what trends have you seen? David Lambert: The biggest trend is an extension of a trend that we’ve seen the entire time we’ve been investing.
David Lambert: To talk about pivots a little more, we’ve got data across a thousand different companies that we’ve seen evolve over time. The most important thing at these early stages is cash burn. What ends up happening is, if we invest in a company that has $10,000 MRR, they go out of the gate
Sramana Mitra: Pivot is a very tricky thing to manage. It’s a very tricky thing to manage from a cap table point of view. If you need to raise more capital to support a pivot, that means that your early investors didn’t really get a lot of valuation. Nonetheless, that happens. It happens very regularly.
Sramana Mitra: What fund size are you working with to be able to do that many investments? David Lambert: Our current fund is a $15 million to $20 million fund. We have $50 million under management across all our funds. The first fund was launched in 2012. It was pretty much proof of concept. We
Sramana Mitra: What about sectors? Is there a B2B preference? What kind of companies do you like to invest in? David Lambert: Our favorite business model is definitely B2B SaaS. We don’t have a particular focus where we have to invest in. What ends up happening in today’s world is that it takes a lot
Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with David Lambert was recorded in March 2019. David Lambert, Managing Director at Right Side Capital Management, a firm that invests small chunks of capital efficient ventures. The firm is very much in