Jainish Rathod

Evaluating a startup's TAM (Total Addressable Market) is crucial to validate its projections. Here's how: Scrutinize Methodology: Understand how they calculated TAM (top-down or bottom-up approach). Ask for data sources and assumptions. Reasonableness Check: Compare the TAM to industry benchmarks and competitor market share. Does it seem realistic? Focus on SAM & SOM: While TAM gives a high-level view, a realistic target is the Serviceable Addressable Market (SAM, whom your startup can reach) and Serviceable Obtainable Market (SOM, your achievable market share). By analyzing TAM and going deeper with SAM & SOM, you get a clearer picture of the market opportunity and the validity of the startup's projections.

Founders are passionate, but non-standard terms can be risky. Here's how to navigate: Clarify: Ask for clear explanations of each non-standard clause. Understand the founder's rationale. Impact Assessment: Analyze how these clauses impact your investment, control, and exit strategy. Expert Help: Consider consulting a lawyer specializing in venture capital to review the terms and advise on negotiation. Remember, open communication and a focus on finding win-win solutions are key.

Venture capital is a long game, and prioritizing quick returns in a volatile market can be risky. Explore Partial Exits: Consider strategic acquisitions of specific portfolio companies for some investors seeking liquidity, while others remain invested for long-term growth. Highlight Non-Financial Value: Showcase the strategic value you add beyond just returns - network, expertise, and operational guidance. Manage Expectations: Be upfront about potential timelines for exits and returns. Underpromise and overdeliver to maintain trust. Remember, prioritizing long-term value creation for the portfolio ultimately benefits everyone.

Sharing confidential information between portfolio companies requires careful handling. Here's how to navigate it as a VC: Strict Confidentiality Agreements: Ensure all portfolio companies sign NDAs before exchanging information. This sets clear legal boundaries. Need-to-Know Basis: Only share information relevant to the specific purpose (e.g., market trends, not competitor specifics). By prioritizing legal safeguards, anonymizing data, and maintaining clear communication, you can facilitate knowledge sharing among portfolio companies while protecting their confidential information.

Impress VCs After a Layoff - Highlight Resilience & Agility: - Demonstrate Hustle & Focus: - Network Strategically: - Become an Investment Thesis: Align your skills and experience with the VC firm's investment focus. Convince them you're the person to solve a specific industry challenge. Bonus Tip: Focus on proactive solutions. Don't dwell on the layoff. By showcasing resilience, focus, and strategic thinking, you can position yourself as a valuable asset to VCs, even after a layoff.

how to effectively convey your exit strategy stance to co-investors: Highlight Alignment with Goals: Could you explain how your exit strategy aligns with the overall vision for the company (growth, impact, etc.)? Show it benefits everyone. Seek Common Ground: You can find areas of agreement, like a timeline for revisiting the strategy or specific milestones for triggering different exits. Finding a balance fosters a stronger partnership. By presenting a data-driven case, highlighting shared goals, and demonstrating openness to compromise, you can effectively convey your exit strategy and work towards a solution that benefits everyone involved.