Comments on: The Categories of Risk in the VC Brain http://larrycheng.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/ Some thoughts on VC, some on tech, and some on other stuff. Thu, 17 May 2012 23:16:10 +0000 hourly 1 http://wordpress.com/ By: Tommy luca http://larrycheng.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1321 Thu, 19 Nov 2009 13:35:57 +0000 http://larrycheng.wordpress.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1321 Thanks for making me to know the various risk of VC brain which I have not come acrossed so far. Its quite interesting to read this article.I am very glad to see such information which I was searching for a long time. Still I would like to know about the various risk in detailed manner.

]]> By: larrycheng http://larrycheng.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1038 Mon, 05 Oct 2009 21:55:09 +0000 http://larrycheng.wordpress.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1038 Michael – I can’t say unilaterally which is worse. If a big player is dominant in the market, you better have something special. I’m not so worried if a big player is playing in a market, but not yet dominant. Young companies can out execute big players more times than not – just because they’re more nimble. If there is early stage activity, and VCs are getting behind the space, that’s a cause for concern. I’m more tolerant of early stage competitors if the space is not one that is being well covered by VCs.

]]> By: larrycheng http://larrycheng.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1037 Mon, 05 Oct 2009 21:53:16 +0000 http://larrycheng.wordpress.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1037 There are varying degrees of thought on this Vicki. Some VCs ascribe to investing in A+ markets/products with the belief that the management team can be supplemented or improved over time. Others are ardent believers in investing behind the “jockey” – i.e. good teams will figure it out. Though, I think everyone believes a great team can’t fix a terrible market – and ofcourse, ideally you have both market and management.

]]> By: Michael Raybman http://larrycheng.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1036 Mon, 05 Oct 2009 21:24:23 +0000 http://larrycheng.wordpress.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1036 This is some very helpful info. There are bits and pieces on the topic, but rarely as structured.

To clarify your point on competitive risk, which is worse – big players already dominating the market, or too much early stage activity?

]]> By: SUMAN GOHAIN http://larrycheng.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1025 Sun, 04 Oct 2009 04:57:53 +0000 http://larrycheng.wordpress.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1025 Very insightful

]]> By: Vicki J. Brown http://larrycheng.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1016 Fri, 02 Oct 2009 14:23:33 +0000 http://larrycheng.wordpress.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1016 Very interesting analysis. The question I have is: Given a choice, do VCs prefer to invest in companies that have an “A” product/market opportunity and a “B” management team? Or in companies that have a “B” product/market opportunity and an “A” management team? I would guess the smartest ones do as you suggest above — choose an “A” opportunity and build a new “A” class management team. Thoughts?

Vicki J. Brown
VP of Marketing
mindSHIFT Technologies, Inc.

]]> By: Alan W Silberberg http://larrycheng.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1012 Fri, 02 Oct 2009 07:50:09 +0000 http://larrycheng.wordpress.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1012 Larry, This is an excellent compilation – especially for the entrepreneurs seeking guidance. In some ways, it almost seems like you just provided the blueprint for what a business plan really should look like. In answering each of these 9 questions, most entrepreneurs will be in one of two places. Either full understanding of the dynamics of their business that will translate to funding and market fruition – or the Realization that they are not even close.

Thanks for an insightful post.

Alan W. Silberberg
CEO, You2Gov

]]> By: Twitter Trackbacks for The Categories of Risk in the VC Brain « Thinking About Thinking [larrycheng.com] on Topsy.com http://larrycheng.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1011 Thu, 01 Oct 2009 16:53:56 +0000 http://larrycheng.wordpress.com/2009/10/01/the-categories-of-risk-in-the-vc-brain/#comment-1011 [...] The Categories of Risk in the VC Brain « Thinking About Thinking larrycheng.com/2009/10/01/the-categories-of-risk-in-the-vc-brain – view page – cached Venture capitalists often talk about different kinds of risk. It’s worth asking the VC’s you meet with what types of risk they feel most comfortable or uncomfortable taking. All VC’s… (Read more)Venture capitalists often talk about different kinds of risk. It’s worth asking the VC’s you meet with what types of risk they feel most comfortable or uncomfortable taking. All VC’s have their preferences and it’s a good way to assess whether your company is a good fit for that particular VC. Here are some of the big categories of risk in the VC brain: 1. Product risk. Will the product actually work? This is a risk that is inherent in early stage companies, especially those that are pioneering novel science or technologies. Any early investor in A123 Systems for example was clearly willing to take product risk. (Read less) — From the page [...]

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