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50 questions: How does the structure of the VC industry impact investment strategy?

By on January 14, 2011

Together with Nic Brisbourne of The Equity Kicker / DFJ Esprit, I am writing a series of 50 questions you should ask when raising venture capital. We expect the series to run for a year, after which we will collate the answers into a book. We view this as a collaboration, so please comment to help make this series even more useful.

Many entrepreneurs don’t take the time to understand or analyse the external pressures facing a venture capital investor. As part of our 50 questions series, Nic Brisbourne explains how the process of raising capital for a fund and the nature of  a closed-end investment fund puts pressure on investment decisions and influences the stage of businesses in which venture capitalists are prepared to invest.

Nic also points out that the investment strategy of a fund can change as it ages,which means that it is really important for an entrepreneur to understand how far through its life-cycle a fund is.

Read more at The Equity Kicker.

About Nicholas Lovell

Nicholas is the founder of Gamesbrief, a blog dedicated to the business of games. It aims to be informative, authoritative and above all helpful to developers grappling with business strategy. He is the author of a growing list of books about making money in the games industry and other digital media, including How to Publish a Game and Design Rules for Free-to-Play Games, and Penguin-published title The Curve: