When we make a venture investment, we're looking forward. We have a view of what this company could become. What needs to happen. What could go wrong. How big it could get. How long it might take. And ultimately, what a successful outcome could look like. In its simplest form, we're forming a view on three things: The probability, timing and potential size of an exit. Let's call it PTSE™ (trademark pending 😄). There's nothing particularly new about it. In many ways, it's wha

When a venture fund makes an investment, it does not begin with a valuation model; it begins with an assessment of the company. Does this company fit our investment strategy? Do we believe in the management team, the technology and the market? What needs to happen over the next three to five years for this company to succeed? How much additional capital is likely to be required, and where will we sit in the cap table after future rounds? Most importantly, if the company succe