Venture Capital News Roundup

Dan Primack interviews USV’s Fred Wilson at the Upfront Summit:



Amit Karp of Bessemer Venture Partners discusses what the crash of LinkedIn means for how VCs assess potential investments and value SaaS companies. Link

LinkedIn’s stock crash is significant not only because of the extensive valuation drop, but also because it is difficult to find a satisfactory explanation for such a large downgrade by so many brokerages. Yes, lowering the guidance for 2016 should be reflected in the stock price. However, nothing substantial has really changed. LinkedIn still enjoys the same underlying network effect and core business, and it is impossible to see how it can be replaced as the dominant professional network in the next 5–10 years.

Josh Elman writes about building a growth model and ladder of engagement, outlining the key questions you need to answer. Link

The key is a hook that will pull people in, and that it’s natural to get them to adopt the product and get to its core purpose. This is the onboarding or adoption process. During adoption, sometimes these steps require other users to be involved such as friends, sometimes it’s downloading an app, sometimes it’s verifying a credit card, sometimes it’s following your first people or content. Understanding adoption and what you need a user to do before they can really get the most out of your product is key.

Mark Suster of Upfront VC makes the case for companies like Uber to go public citing works by Niall Ferguson and Jared Diamond to make his case.Link

Venture capitalists are chasing rising cybersecurity spending. The MIT Tech Review outlines why this is happening and whether the investor attention has already driven prices too high. Link

Alex Iskold of Tech Stars writes about how to get investors to actually commit to participating in your round of funding. Link

Jason M. Lemkin writes about Y Combinator and why scaling to 2,000 startups a year and giving away advice and content for free is not going to hurt the accelerator. Link

Listening to: