Assemble.VC is Boston’s newest venture fund that strives to create a high value experience for new ventures by not only investing in sustainable ideas but also providing mentorship through a community of experts they call assemblies. Our speaker series gave us an inside look on the mindset of a venture investor but also how startup venture capital firms gain trust and invest in various companies.
A day in the life of a Venture Capitalist:
Everyday a venture capitalist deep dives into the varied business plans and proposals that need their attention. When there are certain deals finalized there are pitch meeting scheduled and for existing firms in the VC portfolio a venture capitalist needs to research the legal and market barriers for the business. VC’s also spend a lot of time in their advising and mentoring the firms they invest in since it is essential for an investor to know the changing internal and external environments relating to each of their firms.
What are Pitch Meetings Like?
As explained by Michael Skok, pitch meeting have 3 stages starting with a complete go through of the pitch deck after which there is a in-depth analysis of the business’s financial plans and lastly a discussion on the equity stake of each owner.
What are the most important factors VC’s consider while investing in firms?
Venture Capitalist want to see how clear you are about knowing who your customers are and how competitively distinct are the benefits (value propositions) you are presenting your customers.
Secondly, they want proof that you are actually doing what you suggest you will do so show a minimum viable product or a market test that proves the validity of your idea.
When asked what is more important, the entrepreneur or the idea C.A Webb mentioned that a not so great idea is still more likely to work with an awesome entrepreneur behind it but a great idea would not work if there isn’t a great mind behind it. So be sure to be that passionate entrepreneur willing to go above and beyond in making your idea successful.
As budding professional, how can you position yourself to enter the field of Venture Capital?
Through their extensive research at Assemble, Michael Skok and C.A Webb emphasized the importance of entrepreneurs wanting investment from former entrepreneurs. Thus one way to position yourself is by starting a company of your own and going through the experiences your future firms will go through. Other methods include doing a co-op or internship at Venture Capitalist firms or showing your involvement in the startup community by being involved with incubators like IDEA or MassChallenge or working with Startups.
The point is to make sure to know what you are doing and finding ways to actually achieve it whether you want to make a business or invest in one.