Posted on January 28, 2013 @ 10:53:00 AM by Paul Meagher
One of the most successful venture capital funds is Union Square Ventures.
They have backed many successful next-generation companies such as Twitter, Zynga, and Tumblr. It is worth checking out
their current portfolio of investments.
Part of their success in backing winners is due to their focus on making specific types of investments. They target companies with "large networks of engaged users". Union Square Ventures promotes thesis-driven investment versus just looking for good deals to come across their desk. According to partner Fred Wilson:
You've gotta have a thesis that is well articulated and well understood among the partnership ... and it is why we are doing so well right now.
Investors might ask themselves whether they have a particular investment-thesis. Entrepreneurs might ask themselves whether their investment proposal fits the investment-thesis of a successful venture capital organization in your industry. If you are building web applications, for example, it might help your chances of finding funding if you can demonstrate that you have "large networks of engaged users".
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