What we're blogging

  • Why We Prefer Priced Rounds

    In the past several years LaunchCapital has seen a significant increase in the use of convertible notes at the seed stage. The initial rationale for their usage made sense given the seed fundraising . But, as the standardization of seed stage terms has improved markedly in the past several years, the value of a priced round… Continue

  • Talking It Up: Launch Capital and Betaworks Voicecamp 2017

    “Alexa, turn on kitchen.” “Alexa, timer set 16 minutes.” It may seem like I’m talking to air, but I’m not; these are words I utter literally every day to my Amazon Echo in my kitchen. I’ve had my Echo since it first came out and I hopped onto its waitlist for purchase. When it first… Continue

  • Finding the Next Big Thing: The Pace of Sector Growth is Fast and Furious

    Back in 2011 when I first joined Launch Capital, we started a project to see if we could find untapped markets that would prove to be huge markets and produce huge wins but find them early enough so that we could get ahead of the wave and get our bet(s) in before everyone else figured… Continue

  • Qualities of an Awesome Investor

    Some of our team and I were having a chat about what does it take to be an awesome investor. When I first started investing back in 2006, I was arrogant enough to think that, being a veteran from Yahoo and having worked on so many web products, that I was good enough to invest… Continue

  • Early Stage Investing Take 2: CBInsights Updates Their Funnel and We Update Our Model

    Earlier this year, I wrote Angel Investing at Today’s Market Rates is a Losing Proposition where I presented a model for angel investing and showed that essentially index investing into the early stage set of startups at a market rate of about $6M pre-money put you at a loss after 5-6 years of about 22.6%…. Continue

  • Early Stage Marketplace Investing

    One of our Launch Capital staff, Ed Coady, pinged me the other day regarding marketplaces and asked me how does one find the next big marketplace startup at the seed stage. We both remarked that there are a ton of posts on marketplaces and what makes them successful – BUT they are all written as… Continue

  • The Tweetstorm that Spawned the 10,000X Startup

    This interesting tweetstorm by Dave McClure caught my eye. It was regarding entrepreneurs not wanting to accept a 2x return clause on notes and the high valuation caps on those notes that are running around the Silicon Valley right now. Then at the end Sam Altman of Ycombinator jumps into the fray, who replied: .@davemcclure… Continue

  • The Customer Adoption Problem for Health Startups

    We can all agree that for today’s internet startups, customer acquisition is one of the biggest issues they face. The world is so crowded with apps, things to do, things to grab your attention and waste time – it’s one of the hardest problems to solve to break through the noise and get someone to… Continue

  • All About US Investors for International Startups

    A few weeks back I gave this presentation to a group of Kazakh entrepreneurs at the Silicon Valley Innovation Center. They wanted to know about US investors, what they look for in investments, how to find them and how to create a situation where they might invest in a startup coming from another country. While… Continue

  • Upstream and Downstream

    In mentoring startups, I have noticed two things have come up recently: 1. Entrepreneurs keep remarking to me that investors are looking for multi-tens or hundreds of billions in market size. I believe this is one of the results of the explosion of startups we have seen over these last few years, as investors at… Continue

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