Venture Fund Economics
Morgan Flager, John Dirvin, Cat Dizon, and Chris Traylor sit down in this interactive panel to educate founders on the economics of venture capital funds and help place themselves in the shoes of investors to better understand their decision-making process.
What you’ll find out
- What are the economics of venture capital funds?
- What are investors thinking when they’re looking at a startup?
- How do venture fund economics play out in the real world?
Key takeaways
- “It’s good advice to start a relationship with a VC firm sooner, I think a lot of people think ‘okay, they just need time to understand my business’ and that’s going to take 5 or 6 months. Some of that is true, but I think the bigger thing is just establishing credibility with a Venture Capital firm.” — Morgan Flager, Silverton Partners
- “Round sizes are really unique to your company and your set of circumstances. So what I encourage you to do is a bottoms up analysis to develop your plan, and your round size be a function of that plan.” — Chris Traylor, Flywheel Ventures
- “There is such a thing as dumb money and smart money. Just because you have found an investor, and to Chris’ point, do your diligence. We do our diligence and our founders, the founding team that product. Equally founders need to do their diligence on their VC and investors. Just taking a check you may not be aware of the investors expectations of you. You could add someone at your table or your board that maybe isn’t the right fit.” — Cat Dizon, Active Capital
Who you’ll hear from
About Austin Startup Week
Started in 2011, Austin Startup Week is a celebration and showcase of everything entrepreneurial in Austin. Each year, we bring entrepreneurs, local leaders, and friends together to connect, collaborate and grow through our educational tracks, mentor office hours, startup showcases, and networking mixers.
About Capital Factory
Capital Factory is the center of gravity for entrepreneurs in Texas, the number one startup state in the U.S. Thousands of entrepreneurs, programmers and designers gather day and night, in-person and online for meetups, classes and coworking. With boots on the ground in Austin, Dallas and Houston, we meet the best entrepreneurs in Texas and introduce them to their first investors, employees, mentors and customers. According to Pitchbook, Capital Factory has been the most active investor in Texas since 2010.
