Science Is Eating VC
Science Is Eating VC
Is VC a Science or an Art? There is no room for debate now! It’s becoming mostly a science! How come? Well, read Steve Blank’s post about: “The Investment Readiness Level” and you will agree.
I have attended Venture Capital Training at Harvard, I have enrolled at Kaufman Fellows Program, and I have met several US and international VCs to learn more about the VC world. None of these have ever provided such a scientific approach or a process to make an investment decision.
So if you are managing an accelerator, or a seed/early stage venture capital fund, I think you must attend Steve’s seminar: Lean LaunchPad for Incubators/Accelerators
With the exponential development of our time, I believe that in only 3–5 years, VC as we know it will disappear! A new era of VC will emerge out of the startup management science that Steve Blank and others are working on.
Imagine this:
- - In 3–5 years, Entrepreneurs will go to VCs asking them to connect the startups metrics accounts (like RJMetrics or KISSMetrics) into the VC’s software while still at the acceleration phase, or for a month or two.
- - The VC’s software has a huge database of historic Startups’ data such as: CAC, CLT, LTV, Churn Rates, ARPU, Viral Coefficient and growth rates for specific industries at specific stages, say seed, early, growth, or at 1,000 users, at 10,000 users, at 100k users, etc… or at MVP1, MVP2, etc…all tied to specific valuations for benchmarking purposes.
- - VC firm’s software will be smart enough to detect a star company from 100’s attached to it before actually becoming a star and then suggest a valuation and an amount to invest in it for a given period of time.
- - Of course, it’s not gonna be that blinded, I mean the VCs will still need to meet the team and make sure they want to be partners with them and visa versa.
Moreover:
- - Startups will connect their metrics accounts to crowd investing platforms.
- - When a startup is ready for investments, notifications will be sent to top active investors on that platform to invest immediately!
- - And then member VCs will also be notified to start talking with these startups.
