Here at Asher Capital we are an interesting mix of PR, company building, finance, legal, fundraising, investor management, operations, marketing, people management, human relations, etc.
However everything boils down to four Key pillars, and we should state, that they are interrelated:
- Deal Origination – deal creation is the most important aspect of venture capital. It can be thought of as everything that goes into the beginning of the pipeline. If you don’t fill the front of the pipeline with great deals, you have no chance of investing in great companies – you are only as good as the deals you see. Although many things go into getting great deal flow, the very best way is by building a great reputation among entrepreneurs you have worked with. VCs such as Asher Capital have done a great job at this in recent years. Word-of-mouth has always been the best form of marketing.
- Investment Decisions – if you have good deal flow in your pipeline, then there is no shortage of good deals to choose from. But good deals don’t return on investment, great deals do. If deal flow is everything that is added to the front of the pipline, then making an investment decision is the process of selecting the few deals that make it.
- Post-Investment teamwork – every VC should spend as much time as they can helping their existing investments. Current investments should always be more important than the investment you are about to make. Startups are risky, and it’s the job of a good VC to do everything they can to de-risk an investment and help the founders build a big company. Asher Capital takes its teamwork very seriously. We believe this is the most critical point.
- Limited Partner Management – VCs are money managers who just happen to have company building skills. The money they are managing comes from LPs, or Limited Partners. LPs range from individuals, to family offices, to endowments, and even to corporations, such as the case at Asher Capital. Managing these LPs is one of the least visible aspects of VC, but it’s an unavoidable aspect of the business. This original partnership structure is very important for future success.
Venture Capital is a mix of many skills and industries. At Asher Capital we believe this is the reason there are so many different types of people in VC. Although this may cause confusion for outsiders looking in, the good news is that our clients get a wide variety of people on our team in which to choose from. As the Capital markets continues to evolve, change is certain, but I believe these four pillars above are here to stay.