This week’s episode of Built to Sell Radio features Ilya Strebulaev, a finance professor at Stanford and author of The Venture Mindset, who has spent over 20 years studying the decision-making processes of top VCs.
Strebulaev has taught at Stanford’s Graduate School of Business and conducted extensive research into how venture capitalists navigate uncertainty and make investment decisions.
In this episode, Strebulaev shares a detailed account of his research findings, offering practical advice on:
- Distinguishing between a Private Equity Group (PEG) and a Venture Capitalist (VC). These two investors appear similar on the outside but have different investment criteria and business models.
- Surviving diligence. You’ll hear practical strategies for getting through an investor’s examination period.
- Avoiding the sunk money fallacy. Get practical strategies to avoid throwing good money after bad.
- The power of saying no. Discover why successful VCs reject over 100 opportunities for every one they pursue and how this principle can help you make more strategic decisions.
- Navigating high valuations. Understand the importance of setting realistic valuations to avoid down rounds and maintain control over your business.
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Quote of the Week
“Venture capitalists are not gamblers; they are risk reduction engineers, meticulously folding hands that amateurs would play.”
– Ilya Strebulaev
Deals
- Casa Systems is selling its cable business to CommScope, a company that specializes in network infrastructure, for $45.1 million in cash. Casa Systems generated sales of $64 million and an EBITDA of $12.7 million in 2023, implying an EBITDA multiple of just over 3.5 times.
