Published Apr 30, 2018

20VC: Why Follow-On Investments Are Always A Better Investment, Why Spray and Pray Investing Is Like The Stock Market & Why Startups Need A Board From Day One with Jerry Neumann

Jerry Neumann, a prominent angel investor, challenges traditional venture capital approaches by advocating for strategic follow-on investments and early board establishment in startups, emphasizing active engagement and founder involvement to maximize returns.

Episode Highlights

Topics covered

Portfolio Construction
01
Investment Strategies
02
Role of Boards
03

Questions from this episode

How can the venture ecosystem change?
Asked by 44 people
How do big acquisitions happen, and what role does venture capital play in that process?
Asked by 33 people
Is it better to make more investments?
Asked by 25 people
Is venture capital capital worth it?
Asked by 1 person

Episode Highlights

Related Episodes

20VC: Greylock's Jerry Chen on The 2 Fundamentals To Assessing Startup Risk, Why Good Investors Have To Be Optimistic & Why VCs Get In Trouble When They Move Outside Their "Strike Zone"
Answers 383 questions
20VC: Why The Days of Spray and Pray at Seed Are Over, How To Compete In A World of Sequoia Seed Funds & Why Price Doesn't Matter with Dan Scheinman, Angel Investor @ Zoom & Arista Networks
Answers 383 questions
20VC: Techstars Founder David Cohen on Why Seed Investing Is A Different Asset Class To Venture, What Makes The Best And The Worst Board Members & Why Every Company Has To Have A Pessimist In The Room
Answers 383 questions
20VC: Why Investors Have The Biggest Problem with Bias, Why Our Job Is To Maximise Risk & Why It Is Essential To Get Good at Losing with True Ventures Founder, Jon Callaghan
Answers 383 questions
20VC: Index Ventures Partner, Mark Goldberg on The Questions Founders Must Ask A Multi-Stage Fund Before Taking Their Money At Seed, Why Most Angels Will Lose Their Money & Why We Will See Our First $100Bn Neo-Bank Shortly
Answers 383 questions
20VC: Why Companies Going Bust Is Part Of The Plan, Why Most VCs Are Later Stage Than They Think & Why Venture Capital Is Humbling with Charlie O'Donnell, Founder @ Brooklyn Bridge Ventures
Answers 383 questions
20VC: Why Spray & Pray Investing Is Wrong, Why Data-Informed VC Beats Data Driven VC & What To Look For When Investing In A Marketplace with Josh Breinlinger, Managing Director @ Jackson Square Ventures
Answers 383 questions
20 VC 008: Startup 101 with Mark Peter Davis
Answers 383 questions
20VC: Why Founders Should Take as Many VC Meetings as Possible, Should Founders Meet Associates, How to Get Intros to the Best VCs, How To Extract the Most Value From Your Investors, Why Post IPO Operators Are the Best Angels with Sam Corcos @ Levels
Answers 383 questions
20VC: Why Signalling Risk is Real, What Founders Need to Know About Taking Multi-Stage Money vs Seed Fund Money, Lessons Scaling to $600M AUM, The Secret to Hiring in VC; Hire People with No VC Experience & How Venture Will Be Disrupted with Rob Lacher
Answers 383 questions
20VC: Vinod Khosla on What Venture Assistance Really Means, Why Many VCs Are Not Qualified To Advise Founders & Why Startups Can Innovate So Much Faster Than Incumbents
Answers 383 questions
20 VC 095: How VCs Find Startups and How To Add Value Once Invested with David Teten @ ff Venture Capital
Answers 383 questions
20VC: From Unsexy Startup to $1.8BN Acquisition with $150M in ARR | Why VCs and Founders are Fundamentally Misaligned | Why Valuations and Fundraising are BS | Lessons from Josh Kushner and Marc Andreesen | Zac Bookman, OpenGov
Answers 383 questions
20VC: NEW FORMAT: Harry Stebbings on Why Seed Pricing is as High as Ever, Why Series A is the Best Place to Invest Today, Why Growth Founders Need to Reshape Expectations, Why M&A Windows Remain Shut and When Will IPO Windows Crack Open
Answers 383 questions
20VC: Why Process is Everything In Good Venture Firms, Why GPs Should Have More Empathy For LPs and Lessons from 32 Years In VC, Chairing Over 25 Boards with Peter Parker, Managing Partner @ Bioinnovation Capital
Answers 383 questions

20VC: Why Follow-On Investments Are Always A Better Investment, Why Spray and Pray Investing Is Like The Stock Market & Why Startups Need A Board From Day One with Jerry Neumann

Topics covered

Popular Clips

Questions from this episode

Episode Highlights

Portfolio ConstructionJerry Neumann, a leading angel investor, critiques the vast portfolio model in venture capital, advocating for a more hands-on approach to maximize returns. He emphasizes the importance of active engagement and maintaining founder involvement in early-stage startups.

Portfolio Construction

Investment StrategiesJerry Neumann explores the significance of price sensitivity in venture capital and the strategic importance of follow-on investments. He shares insights on how these factors influence his investment decisions and portfolio management.

Investment Strategies

Role of BoardsJerry Neumann discusses the critical role of early board establishment in startups and the qualities that make board members exceptional. He highlights the importance of accountability and the dual roles board members play in supporting founders and protecting investor interests.

Role of Boards

Related Episodes