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How VCs Calculate Their Average Check Size 💰 Take 2 minutes, and you’ll get it. Let’s break down a hypothetical $𝟏𝟎𝟎𝐌 fund making 𝟐𝟎 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬—a quick way to see how average check size is determined: 𝐒𝐭𝐞𝐩 𝟏: 𝐅𝐮𝐧𝐝 𝐒𝐢𝐳𝐞 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐢𝐨𝐧 (𝐀) - Fund size = $100M 𝐒𝐭𝐞𝐩 𝟐: 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭 𝐅𝐞𝐞𝐬 (𝐁) - Management fees = 2% of $100M = $2M/year over 10 years = $20M - Adjusted Fund Size (A - B) = $100M - $20M = $80M 𝐒𝐭𝐞𝐩 𝟑: 𝐈𝐧𝐢𝐭𝐢𝐚𝐥 & 𝐅𝐨𝐥𝐥𝐨𝐰-𝐎𝐧 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐒𝐩𝐥𝐢𝐭 - Follow-On Investment = 50% of Fund = $50M - Remaining Amount for Initial Investments = $80M - $50M = $30M 𝐒𝐭𝐞𝐩 𝟒: 𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐂𝐡𝐞𝐜𝐤 𝐟𝐨𝐫 𝐈𝐧𝐢𝐭𝐢𝐚𝐥 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬 - Remaining Net Amount / Number of Companies = $30M / 20 = $1.5M 𝐒𝐭𝐞𝐩 𝟓: 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐅𝐨𝐥𝐥𝐨𝐰-𝐎𝐧 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 - VC aims to invest $2 in follow-on for every $1 in initial investment. - Planned Follow-On Investment = 20 companies * $1.5M * 2 = $60M - Adjusted Follow-On Investment (limited by available funds) = $50M 𝐒𝐭𝐞𝐩 𝟔: 𝐀𝐝𝐣𝐮𝐬𝐭𝐞𝐝 𝐂𝐡𝐞𝐜𝐤 𝐒𝐢𝐳𝐞 𝐰𝐢𝐭𝐡 𝐅𝐨𝐥𝐥𝐨𝐰-𝐎𝐧 - Adjusted Average Check Size = Adjusted Follow-On Investment / (Number of Companies * 2) = $50M / (20 * 2) = $1.25M A͟ ͟c͟o͟u͟p͟l͟e͟ ͟o͟f͟ ͟o͟t͟h͟e͟r͟ ͟t͟a͟k͟e͟a͟w͟a͟y͟s͟:͟ - The follow on can be $40M (50% of adjusted Fund-size) - Follow-on capital typically wouldn't be reserved for all 20 companies - Fees typically step down after year five or so Boom that's it! Shoutout to my friend Fazlur Shah for inspiring this post! He’s one of my favorite follows for more numbers-driven insights. #startups #venturecapital #entrepreneursip ____ Enjoy this? Follow Kevin Jurovich for daily startup & VC insights and the occasional meme. ✌️

When you really understand the user pain points 👀

Happy Birthday Matt Bamber 🎉 Your passion for making the world a better place to live through your initiatives is truly inspiring! Thank you for the opportunity to be part of the frontend developers team and create GetaApp.io as a frontend developer! I'm so grateful to be part of your team and to see how your vision comes to life. Feliz aniversário! 🎉 🎉 🎉

On this day 16 years ago, Airbnb launched. Today it's worth $73 billion 😳 These are 5 rejection emails they got when raising at a $1.5M valuation: On June 26, 2008, co-founder & CEO Brian Chesky and the team were introduced to 7 well-known investors & venture capitalists in Silicon Valley. The founders were trying to raise $150,000 at a moderate $1.5 million valuation. That means for a $150k check you could have bought around 10% of Airbnb. As of today, that could be worth $2-4 billion. Each 🤯 Below are 5 rejections the co-founders got after chasing VCs multiple times. The other 2 did not even bother to reply… 😬 All the investors were really smart people, with tons of knowledge and experience. They knew the space and thought they could anticipate the future. Yet, they still disregarded this opportunity, and the rest is history. Next time you have an idea and it gets rejected, think of these emails. P.S. check out 🔔linas.substack.com🔔, it's the only newsletter you need for all things when Finance meets Technology. For founders, builders, and leaders.

We all feel stuck sometimes. But don’t let sometimes turn into forever: Don’t be afraid to start over even if: ↳ You worry about repeating past mistakes. ↳ You feel uncertain about the future. ↳ You fear being judged. Starting over can be scary. But momentary fear is better than lifelong regret. Here are 6 ways to rewrite your story: 1/ Ask Yourself What Needs To Change. ↳ What is missing? Purpose, happiness, or freedom. ↳ When did you experience them last? Use that to help you search for what’s next. 2/ Prepare Your Exit Plan. ↳ Carefully plan the timeline of your transition. ↳ What do you need to do first? Take the first step now. 3/ Test Out Your Interests. ↳ Want to do something new? Try it out as a side hustle. ↳ Learn from experts on social media. Use your free time before making the leap. 4/ Learn From Mistakes. Be Kind to Yourself. ↳ Mistakes are the greatest teachers. We do not learn without them. ↳ Forgive yourself for your past decisions. You cannot change the past, only the future. 5/ Be Curious. Keep Your Mind Open to Learning. ↳ There are no stupid questions. Ask away. ↳ Starting new things gets scarier with age. Embrace the beginner's mindset. 6/ Celebrate Small Wins. ↳ Acknowledge your milestones. Build momentum and confidence. ↳ Interviewing for something new is worth celebrating. Remember: Every ending is a new beginning. Use these tips to rewrite your own story. --- Quote Credit: Tamara Kulish --- ♻ Repost to help others make change. ➕ Follow me (Will McTighe) for more like this.

In May 2025, thousands of international entrepreneurs, investors, media and leaders will gather in Vancouver to connect the tech world at our newest event: #WebSummitVancouver.