Can you play VC Bingo ?
[Article initially published in November 2015 on another platform]
Two years ago, I was a COO, it’s only recently that I became an investor. I picked up the technicalities and jargon very quickly but I’m still learning the codes and habits of the trade.
One of them is what I’ve come to call “VC Bingo”…
When two Venture Capital investors meet, e.g at conferences like WebSummit last week, they usually start the conversation with a few rounds of VC Bingo.
Here is how it goes:
[VC#1] “I heard you’re interested in connected objects, I came across a brilliant Czech guy last week who created Cool Bins out of Patagonia, they do a connected Bin, do you know that guy ?
[VC#2] “mmmh, I don’t think so”
[VC#1] “Oh, really? you should, they’re growing like crazy!”
>>So that’s 1 point for VC1#, now it’s VC#2’s turn to play
[VC#2] “Oh that reminds me, have you come across “Fshr” based in Berlin
[VC#1] “Ah yes, they’re the company doing a tracker for goldfishes, right ?
>>“2–0”, VC#1 wins and the conversation can move on to proper business talk…
Got it ?
You think the rules are too simple and the game too easy because everybody knows an obscure fledging business ?
Think again!
The rules are actually complex and if the chosen startup is really small and has little chance of getting big, it won’t score many points. The winning strategy is weighing your risk by picking the biggest/most promising company that the other player won’t know. . Naming a Unicorn (Private company valued $1Bn or more) that the other player doesn’t know is the equivalent of a Judo Ipon: you automatically win the game.
And finally, like any game, the playing field is a key component.
At C4 Ventures, we believe that investors who are passionate and knowledgeable about their investment theme and ecosystem make successful ones, so we choose very specific investment focus. We invest in Smart Hardware, future of Commerce and Digital Media technologies.
It means that no VC would expect me to know startups outside of this focus area. Vice versa, while I still lose games regularly, I’m starting to be quite good within these themes.
If you’re a VC, you can comment and complete the rules, I’m sure I’ve missed a few!
If you’re the founder of a great startup in hardware and Commerce which is under-appreciated, please reach out… You’ll help me win a few rounds of VC Bingo and more importantly, make great investments for C4 Ventures.
