In the mid nineties I made my first angel investment for $5,000. Since then I have worked on multi-billion dollar transactions and everything in between. My life has come full circle in many ways as I set up Amasia (cross border vc) last year, and I’m excited to be back to my roots in venture investing.
Well I love working with inspiring entrepreneurs and bleeding edge technology, but the most compelling aspect of venture investing for me is the alignment of interests.
In later stage private equity transactions, the pie is relatively fixed, so the best way to take home more reward individually is to fight for a larger portion of what is available in a given deal.
But in venture, the overwhelming majority of reward flows from the process of making a very small pie into a very large pie, so entrepreneurs and investors are more focused on finding the right partners to get from point a to point b, rather than fighting over a couple extra points here or there. There is no doubt negotiation between parties, and of course there can exist differences of opinion and eventually contention in some cases, but generally in the venture world interests are much more aligned than they are in later stage PE. This leads to a more fun, collegial flavor to all the interactions I have with entrepreneurs on a day to day basis.