Grays Sports Almanac for Venture Capital

Picture of Grays Sports Almanac and Eisaiah Engel's head going into a worm hole.
Picture of Grays Sports Almanac and Eisaiah Engel's head going into a worm hole.
Read this investment hypothesis before it disappears on 10.21.18.

Executive Summary

Grays Sports Almanac for Venture Capital proposes a new risk management model for venture capital. In this investment hypothesis, I outline why a venture fund might beat the odds by purchasing 2,208 to 4,416 warrants on startups. Startups would operate under a governance framework called the Founder Friendly Standard, which gives entrepreneurs control of their companies. In exchange, the venture fund would have the option to exercise warrants for 15 years—purchasing discounted equity only in the startups that become successful.

Beat the odds with a new asset class of warrants on the Founder Friendly Standard.

Credit Suisse discovered that companies where founders have a large ownership interest—like Nike, Alibaba, Berkshire Hathaway, and Google—outperform their peers by 400 basis points per year. Credit Suisse calls these companies the CS Family 1000. They are an “asset class with a compelling investment case” (Klerk et al., 2017).

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What is the Ray Dalio “All Weather Portfolio” for individual investors?

ray-dalio-all-weather-portfolio-eisaiah-engel

I imagine you landed on this page because you read the Ray Dalio interview in the Tony Robbins book, Money: Master the Game, and you’re trying to remember what percentage (%) of stocks, treasury bonds, gold, and commodities are in the All Weather Portfolio – adapted for individual investors.

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I’ll be the Sean Parker to your Mark Zuckerberg

Sean-Parker_Mark-Zuckerberg

When I was in my 20s, I met Gk Parish-Philp, a co-founder of DivX. I asked him how to get investors for my startup. He said, “You don’t want investors. They’ll take too much control.”

“That can’t happen to me,” I thought.

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