State of VC – Southeast Spotlight

Executive Summary

Venture capital in the U.S. continues to flow at historically high levels, largely driven by later stage deals, with total invested capital on pace through August for an all-time record in both the Southeast ($4.2B) and nationally ($70B). Exits have declined moderately, primarily due to lower corporate M&A activity, though the Southeast received a significant bump from PetSmart’s $3.4B acquisition of Chewy. The bright spot of exit ac... Read more

Convertible Debt, SAFEs and Equity

I frequently field questions from entrepreneurs and angel investors about Convertible Debt, and more recently about SAFEs (Simple Agreement for Future Equity).  This is a topic that many have written about, so I thought it might help to do a quick post summarizing Vocap’s perspective and then provide some links to more thorough pieces written over the years. If you are new to venture investing, these topics can seem confusing and complicated.  Building ... Read more

Forecast Modeling for Early Tech Co’s

As technology venture investors, we are presented with a wide variety of forecast models.  Given that we typically lead or participate in Series A / Series B rounds, we are often evaluating companies that are still relatively young (read: lean).  Understandably, many of these companies have yet to establish a dedicated finance function, so the task of developing a forecast model can fall – at least in part – on the CEO or some other, more operati... Read more

When NOT to Take VC Investment

I recently came across a good article by Jonathan Friedman at LionBird about why VCs pass on 'good' companies.  The gist of it is that the VC model is based on slugging percentage, not batting average (i.e. a few big hits carry the returns while the rest can essentially fail).  Accordingly, leaders of ‘good’ companies need to get their spiel down to convince VCs why they are ‘grea... Read more

Unicorn Obsession

My daily reading habit is kind of like my workout habit; some days, it just doesn’t go as planned.  For proof of this, you need only look at my unread email count (a scary 2,557). I got a little spotty in my TechCrunch reading over the summer, so this past weekend I circled back to some old  articles and stumbled upon Greg Sand’s (Costanoa Venture Capital) June post on ‘The R... Read more