An ecosystem innovation fund, or “EIF,” is a seed fund for startups. EIFs are a hybrid of corporate venture capital and the US government’s Small Business Innovation Research grant program, or “SBIR.” EIFs combine the best from both models to create a new vehicle for large companies to invest in innovation in their digital ecosystems.Continue reading
A new standard for optionality to beat the odds
Grays Sports Almanac for Venture Capital proposes a new risk management strategy for venture capital. In this book, 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.
In 2017, Forbes published an article called, “Group of White Men in Patagonia Vests Confused for VC Fund, Raise $500 Million.” It took a while for me to realize the article was satire. A year later, researchers from Harvard, IESE, and Yale unintentionally corroborated the Forbes story with the finding that luck and past success are the winning factors for startup investors—not skill (Nanda et al., 2018). Luck and past success can cause venture capitalists to become overconfident and tinker with their portfolio companies. This can be a problem for entrepreneurs and for limited partners (often pension funds and family offices) who trust venture capitalists to invest wisely.Continue reading
The Prospect Theory eMindset is a one page summary of Prospect Theory–chunked into simple facts, questions, and visualizations.Information is presented in parallel. Readers can jump around in whatever way “fits” their brain best. Many discover this is a faster way to learn than reading sentence by sentence.
Check out these articles I just wrote to read through the B.S. on resumes. There’s a way to identify real talent before you even talk to a candidate.
Just wanted to mention some exciting points while I’m in the middle of writing an article on effective Pre-Interviewing techniques.
Fishing for “A” Candidates in a Digital Pond was a small publication I wrote in November of 2008. It was supposed to be “a guide to recruiting top talent to your firm by having intriguing conversations over social networks and RSS.”
While some of the ideas are obsolete now, here are some interesting concepts that could tweaked to fit today’s digital landscape. Especially page 12.