• Ultimately, you want someone that has your back. Truely, it’s not about you, it’s about the company but it’s your company. Pick the best VC for you but pick someone that has your back. If you don’t feel it ... even if the brand is right, the background is right, the smiles go on for miles ... pass, find another, even at a substantially lower price ‘cause you’ll be stuck with this dude forever. 45. I just made $30 million dollars from selling a company. How do I start my own venture capital fund with this money? First, put 10% of your $30m aside for the fund. You can lose 10% of whatever you just made without huge stress. You’d still have 90% left. After that, it gets stressful, save the rest for later. If you put aside 20%-30% you may feel a lot of stress as you may lose all the money or worse, lose all the money after a lot of work. OK, so 10% that’s only $3m for a venture fund. That’s too small for a real fund, so do one of three things: 1. Make it an “angel” fund that does 30 investments. This way you can do up to $100k per investment. 2. Get some leverage on AngelList with a syndicate then you might be able to do $250k per investment. That starts to be a real micro- fund, not just angel investments. You can be 1 of 3 investors in a $750k seed round this way. 3. Find a partner or one or a few LPs and get the fund up to $8- $9m, then you can also do $250k per investment. 30 for diversity x $250k = $7.5m. You want to be able to do 30 investments per “fund” so the math will back into how much of a “player” you can be and what role you should take -- micro-VC for $250k check, or value-add angel for $50-$100k. See the maths above as example. SAASTR.COM 40