Insight on discussion with Tiffine

  • Deploying USD40 million per year
  • Deploying USD1-2 million per company
  • Estimated number of companies deployed is 20
  • Looking for companies that can return 10X of investments
  • Looking for companies that has potential to be big versus companies that are sold off as features
    • Companies sold off as a feature will fetch a maximum of USD30 million
    • Companies with successful exists should fetch more than USD50 million
  • Expectations
    • Seed stage to pull in USD 1 million dollar revenue a year
    • Series A to pull in USD 10 million dollar revenue a year
  • Company that has been around for 7 years without remarkable growth is not exciting for VCs trying to hit their own target
  • VC take the pitch deck provided by Founders and translate these pitch deck into a investment memo which gets forwarded to all her partners
  • At the early stage, VC fund not just the idea but their assessment of founder’s ability to pivot fast to another idea that could return 10x if current idea does not work
  • At latter stage, VC ok funding for 3X returns but deploying larger amount of capital

Key takeaways

To make the job of a VC easier do the following:

  • Make it obvious how this company is going to return at least 10X the capital deployed
  • Paint how big the company could potentially grow by describing the size of the market it is going after
  • Structure the pitch deck in such a way that it could almost be just copied and paste into an investment memo


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