What is DCF? Discounted Cash Flow (DCF) is an analysis method used to measure the present value of an investment, asset, or security. The DCF model provides us with the value an investor will reasonably pay for an investment considering their required ROI on...
The deal memo is an essential document for venture capitalists when considering an investment deal. Typically, after hearing a pitch, a VC will put together a memo to document their thought process around the deal. This document is vital for several reasons: It...
The Term Sheet is the most important document when investing in a startup. This legal document sets the terms for the current funding round and lays the foundation for terms set in future rounds, making it crucial to get the negotiations right. These negotiations can...
One of the essential elements in a venture capital firm is the investment thesis. The thesis can come in many varieties, from broad and loosely defined focuses to a specific vertical and company stage. On the other hand, some investors choose to allocate capital...
When considering an investment, it’s essential to understand the size of the opportunity. To find this information, both VCs and founders will conduct an exercise called market sizing. This post will define what market sizing is, why investors and founders...
One of the biggest differentiators between private investors and fund performance is their deal flow. This fact is especially true today, as more money has moved from the public markets into venture capital through micro-VCs, crowdfunding, and corporate venture...
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