neumannsol.com

Well, lets for a moment, step into the role of a VC/Angel and see what they look for in a deal:

Core Requirements:

• Management team: Deep domain experience (> 5-7 years)
• Companies with distinctive products with proprietary edge & strong customer appeal
• Localized investments

Investment Guidelines:

• 3-5 years time horizon with 15-20x return (that’s not 15-20% IRR, but 15-20 times their money back!)
• $1m-$5m in investments
• Ongoing Investments
• Equity or Convertibles
• Management should have real skin in the game
• VC’s assume the role of a lead investor

Business Plan:

• Strategic Direction
• Understanding of the Niche Markets & the proprietary nature of the business
• Resumes
• Analysis of the markets: Trends, Competitive climate, etc.
• Distribution channels
• Projections
• Uses of Cash

So, it is vital to have deep domain experience on your team, and an idea which has the potential to generate 15-20 multiples in 3-4 years.

Check out Mark’s blog on getVentures for lots of great info and details.

Still the best readings on macro-economics and markets:

THE STATE OF LONG-TERM EXPECTATION

The whole book, The General Theory of Employment, Interest and Money is a great read.

I will write more on the chapter on long-term expectation soon….

The latest book that I am reading is

Coopetition

by Brandenburger & Nalebuff

Its on game theory, business strategy & competition.

Wikipedia link

Overall, the book is really good and a quick read.

My review on this coming soon…

NeumannSol = Neumann Solutions

Neumann = John Von Neumann

John von Neumann = One of the greatest mathematicians, one of the greatest quantum physicists, one of the greatest computer scientists (before the advent of digital age!) and one of the greatest minds of all times.

Some links

http://mayet.som.yale.edu/coopetition/vN.html 

wikipedia

cs.vt.edu

A fairly decent editorial in WSJ (yes — surprise!). The author talks about the trends in FDI in US.

Yesterday Ford Motor Company announced it will sell its Jaguar and Land Rover divisions to India’s Tata Group. Upon the closing of this transaction, the many Ford associates currently working in these divisions in the United States will join the ranks of Americans who work at insourcing companies — i.e., at U.S. affiliates of foreign multinational firms.

To truly be such a location would require dramatic progress on many fronts: renewing the president’s trade promotion authority; resuscitating the World Trade Organization’s Doha Development Round; passing comprehensive immigration reform. But to start such a journey with a single step, let us all pause to appreciate yesterday’s good news from Tata.

http://online.wsj.com/article/SB120658030582967343.html