Silicon Valley, California, C Baco discussed on Masters in Business


But also helps potentially expand that that the access for that company. So it's not just network density. But then it's the network affect cross pollinating from city to city. You got it quite interesting. Do you have a target for number of investments you're gonna make each year? Or is it really you just kinda take it as it comes. Yeah. We I think we'll do about one hundred hundred and fifty investments out of this fund over the next couple of years, but we're we don't have a specific target. We again are being super opportunistic about about finding great companies in in in in these regions. And you mentioned this fund. My sumptious is this is the setup as a traditional VC g general partners in limited partners any thoughts on is. They're going to be a rise of the rest to resurrect three going to stack that. Down down the years. What happens when you basically say, okay, we're we're filled up. You know, I'm focused on deploying one hundred and fifty million that are limited partners have invested in in in this fund and hope to really make a difference. And obviously create a lot of value in in in in the fund that we're in you know, who knows what the future is going to hold. But we're super excited about about the the the the limited partners trusting us in the capital that we're deploying into what I think are a fantastic array of companies that that showcase the best of of what's going on. And you know, at least forty seven of the fifty states, although we do have investments in California in in New York, but not necessarily in Silicon Valley or. Yeah. And you know, I I've danced around this question. And and you you came close to answering it, but I haven't asked it. So let me just blurt it out. I have to imagine. There are a lot of misconceptions about venture investing. In general, you reference the misconception about your relationship with Silicon Valley, but just being broadly. What do you think is is some of the biggest misconceptions about how venture capitalist operate what they invest in just generally speaking. So I think from the enve- from the capital deployment side. The biggest misconception is that. It's easy. Is that you just you you sit around listening to a couple of pitches. And whenever something if you write a check, and I mean, and you know, we we apply science we apply data to to to our decision making. And you know, and and we we do a lot of work. I mean, we're it's not just come in for pitch and come out thirty minutes later with with the check. Right. I mean, we the the closest we get to that or are in our pitch competitions. But but but for our our our normal investments, we're we're doing due diligence in asking big questions about the market opportunity in an about the founders domain expertise and about. All all sorts of ebbs and flows of the real market opportunity in the business model. I think from the capital receiving perspective. I think the biggest misconception is that. A lot of entrepreneurs have great companies, but they're not necessarily venture back a ball. And I think that there's this this misconception that that venture is is the the financing source of of of kings. And and you know, I was still whenever I start having conversations and top two particularly large audiences of of entrepreneurs, I say the first best source of financing is revenue right revenue. Doesn't take any of your company? You don't have to pay any of it back. And if you can scale your company through everything that's best. But a lot of a lot of folks have really good businesses that just aren't necessarily venture cap- R V C Baco businesses because they're either not growing at a scale or have a broad enough large enough market opportunity. I mean, typically venture capitalists are looking for billion dollar billion dollar businesses. And and we have a specific model to to help. Hel help define what that means. And you look at companies like Uber. It's totally rematch. The taxi dispatch industry period that's a billion. That's e it's easy to see the multi-billion or global unstoppable. But there there lots of lots of really good really small really great small businesses where the proprietors are going to be millionaires. But those aren't necessarily always great venture backup business. Sure. Makes a lot of sense..

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