The Lower-Risk Startup: How Venture

Capitalists Increase the Odds of Startup Success

Lots of venture capitalists claim to add value to the companies in which they invest.
But how do they do it?
Certain VCs are aggressively building out a focused portfolio operations skill set and
recruiting more people with operational backgrounds
Focus on TOPSCAN framework.
The portfolio operator strategy has potential to boost returns
VCs have five main resources with which to increase portfolio company value: cash,
brand, industry network, funding network and in-house expertise.
There are three common categories of VCs in terms of attitude and practices toward
investing and portfolio company support
Financiers: Im a banker, not an operator.
Mentors: I try to be the CEOs consigliore.
Portfolio Operators: We have a structured, standard process for adding value.

 How can VCs decide which role of the three (Financier ,Mentor, or
Portfolio Operator) they should choose?
Evaluating
Evaluating
Evaluating
Evaluating

cash resources
brand resources
network resources
in-house resources

Conclusion
The venture capital industry fulfils a crucial role in our financial system.
VCs could have even more impact if they could improve their success rate.
The crucial factor in achieving higher efficiency is to understand your assets and
choose a strategy that leverages your strengths and mitigates your weaknesses.
Those VCs who are honest in their introspection and act accordingly are far more
likely to be effective stewards of investor capital.