In my previous blog post, I spoke about how I felt that my investment thesis was shallow and poorly thought out. And as a result, my sourcing strategy was unfocused. So, I decided to sharpen my pencil and rewrite it. I have gone down the rabbit hole in researching what makes an outstanding investment thesis. As a result, I have come across some great resources from prominent technology investors that I’d like to share.
The first is the evolution of the thesis from Union Square Ventures. It is incredible to see how the firm has adapted itself to the market.
Union Square Venture Thesis 1.0: “We invest in Large networks of engaged users, differentiated through user experience and defensible through network effects.”
Union Square Ventures Thesis 2.0: “As the market matures, we look for less obvious network effects, infrastructure for the new economy, and enablers of open, decentralized Data.”
Union Square Ventures Thesis 3.0: “USV backs trusted brands that broaden access to knowledge, capital, and well-being by leveraging networks, platforms, and protocols.”
A16Z needs no introduction as they revolutionized how VC firms operate. They have several areas of focus. I grabbed their thesis on B2B SaaS, as that is my wheelhouse.
A16z Enterprise Investment Thesis: “We back entrepreneurs who build technology for the next generation of an enterprise. Many of us are former founders, and collectively, we have achieved exits of over $4 billion with our own companies. Now, as investors, we invest in technology—from satellites to open source to security—that transforms the way the world does business.”
Scale Ventures Video– This video shows how Scale VC positions itself in the market and speaks to founders about it.
David Rosskamp– David Rosskamp dives into the different types of investing from different perspectives.
Stay in Your Overlap– Great visual tool on how to explain what you like in a deal.
I took these findings to my biggest “beltlooper” and former partner, Jim Armstrong, founder of JDA Software. We hashed out some ideas and have come out with an outline of how DWP will position itself. Of course, there is much more work to do, but I am excited to develop and share!
