Katie Andresen’s Post

"Multiples" are essential tools in venture capital for quickly analyzing company value, but their role is hotly debated, especially among younger investors. Multiples help investors understand market trends and provide context by comparing terms to peers, though they are not precise valuation methods. As we go forward, over-reliance on crude comparisons risks creating market bubbles and harming returns, underscoring the need for more sophisticated valuation approaches. #VentureCapital

Everyday is a School day 👩🎓 What is the topic this time? Investing The belief that only 10-20% of VC portfolio companies need to be successful to achieve their targeted return rate has always fascinated, and disappointed, me. Therefore, as I move from individual Angel Investing to investing into a VC fund, the questions are becoming more focused but what have I missed? ❔ Fund versus distribution led ❔ History and track record ❔ Investment thesis and strategy ❔ Deal flow acquisition ❔ Hypothesised inflection and liquidity events I am also optimistic to read this article👇 which highlights the need to go back to the basics of venture: staying small, differentiated and focused on delivering returns. https://lnkd.in/eyDqw6Pz What do you see as the predictions for VC in 2025?

Before you shake hands with a venture capitalist, Here are 5 essential steps to take 🤝💼 1. Understand the Exit Strategy: Before accepting any VC funding, consider their exit timeline. Will it align with your long-term goals? For example, are you prepared to sell your company in 5-6 years if needed? 🎯🔄 2. Scrutinize the Term Sheet: Examine each paragraph of the term sheet closely. Most terms will dictate your relationship with investors. Neglecting to read the fine print can be costly—potentially millions of dollars. 📄💸 3. Clarify Expectations: Discuss how the VCs envision their role and your interaction. What kind of support will they offer, and what do they expect from you in return, perhaps at board meetings quarterly? 🗣️🤝 4. Check Their Track Record: Perform a background check, especially regarding investments that didn’t pan out. Use databases like Crunchbase to research the firm and individual partners, noting that practices may vary within the firm. 🔍📉 5. Know the Fund’s Stage: Determine which fund will invest in your company. A new fund might mean less pressure to sell soon, giving you 7-8 years before exit discussions start. Conversely, an older fund nearing its cycle end could push for an exit within 2-3 years. 🕒💰

This week, I had the opportunity to speak with USC Marshall School of Business "Investing in New Ventures" class, taught by my friend and colleague, Carmen Palafox. We discussed one of the most critical (and often underestimated) aspects of venture capital: portfolio construction. It’s not just about writing checks—it’s about balancing the art and science of strategy. From fund size to investment pacing, each decision affects how capital is deployed and, ultimately, the success of the entire portfolio. I shared insights on everything from reserve ratios to the impact of a seemingly small change in valuation—like how a slight jump in post-money valuation can drastically change ownership and returns. The key? Discipline; especially in today’s competitive VC landscape, where crowding and high valuations from 2020-2021 are still felt. Staying disciplined allows you to make informed decisions while navigating the uncertainties of market dynamics. At the end of the day, venture is a long game, and how you manage your portfolio from the outset, sets the stage for long-term success. That, along with a bit of gut instinct and, of course, luck.

As a new starter at Rampersand, it has been fascinating to sit next to Scott Dommett and eavesdrop on —sorry, listen to—him interviewing many, many founders. I was curious about how we determine which #startup ideas proceed through the initial meeting stages to the next step and onto #VCfunding, and he introduced me to the "WDWNTB" framework. It's rigorous and thoughtful and an excellent system for helping ensure we invest in the best companies in our ecosystem. Have a read!

While we review around 2000 startups in a given year, we only choose to invest in around five. So, when assessing a founder or #startup, how do we determine who we think will become a unicorn? 🦄 The "What do we need to believe?" (WDWNTB) framework is our process of stage-gating the various levels of our deal flow funnel. Scott Dommett has detailed the rationale, the concept, and the filters we apply at each stage of the process, and it's well worth a read for a peek under the Rampersand hood! ⚒ #VCfunding #VentureCapital

Navigating the venture capital landscape can be daunting, but it’s a journey worth embarking on. Our latest article explores the essentials of angel investing, highlighting key terminologies, the importance of a solid investment thesis, and evaluating various investment options. This piece is derived from a master class led by Jed N., a seasoned investor and founder of Angel School, designed to equip aspiring angels with the knowledge and skills needed to succeed. Curious to learn more? Dive deeper into the first principles of venture investing on Medium and learn how you too could access this masterclass for free: >>>>> https://lnkd.in/gFRWdHQX <<<<<<

In a follow-up to my post earlier this week on portfolio construction and subsequent questions related to changing interest rates, please see this excellent post from Tomasz https://lnkd.in/gFK9NXwM

Importance of a professional website for venture capital firms. 🌟 Rise and shine, visionary investors and forward-thinking firms! Today, let's dive into the digital realm and explore why having a top-notch website is an absolute game-changer for venture capital firms. 💼💻 In an era where first impressions are everything, your website serves as your digital storefront—a powerful tool to showcase your brand, portfolio, and investment philosophy to the world. A sleek, professional website not only instills trust and credibility but also acts as a magnet for high-quality deal flow and top-tier talent. From captivating design to user-friendly navigation, investing in a stellar website is an investment in your firm's success. So, let's raise the bar and make our online presence shine as bright as our vision for the future! 🚀✨ #ProfessionalWebsite #DigitalPresence #InvestmentSuccess

The VC investment process can often be very opaque. Founders regularly ask us "What are the next steps from here?" To bring clarity to the process, we've pulled together a guide on how we think about new investments. At Rampersand, we think about investing through the lens of our 𝐖𝐡𝐚𝐭 𝐃𝐨 𝐖𝐞 𝐍𝐞𝐞𝐝 𝐓𝐨 𝐁𝐞𝐥𝐢𝐞𝐯𝐞 (WDWNTB) framework. In essence, we identify the critical assumptions needed for your start-up's success and then determine if we can gain conviction in them. If you have any questions about our process or are thinking about raising capital, shoot me a message and let's chat!