In this episode, we're excited to have Chris Van Dusen from the venture capital world join us. He brings a wealth of experience from both the VC and entrepreneurial worlds. He shares his unique journey through sales, marketing, and three successful business exits. Chris also talks about Solyco Capital, his firm that prioritizes smart capital over mere funding, and their approach to matching investors with the right opportunities.

Tune in as we dive into venture capital strategies, how to navigate investment rounds, and the balance of assessing venture potential. He and Pete also discuss the realities of selling a business and the unexpected lessons learned from being an angel investor. Whether you're an entrepreneur looking to perhaps one day sell your business, or are already an investor in the HALO space, Chris's perspective absolutely offers a fresh take!

On funding and valuation, Chris states, "To qualify for your Series B, you'd ask . . . did I hit those goals? And secondarily, am I on glide path for the next big growth or step function of my business? If the answer is no, then you're not going to get this larger, new valuation. If the answer is 'maybe, but I need a little bit more time,' maybe you do what's called an extension round . . . it's maybe the same valuation because you really haven't hit it, but you're very close."

Key themes discussed

• Private Equity Fund Term Sheet Dynamics
• Series B Funding and Valuation Criteria
• Regrets of Angel Investing
• Pandemic-Proof Investment Strategies
• Entrepreneurial Struggles and Successes
• Navigating Pivots in Startups
• Challenges in Selling Businesses
• Entrepreneurial Deal Insights

A few key takeaways:

1. Smart Capital Over Just Capital: Chris emphasizes the importance of "smart money" versus just having capital. He elaborates on how smart investors not only provide funds but also strategic guidance and support to help companies scale.

2. Flexible Investment Strategy: Instead of raising a fund and sticking to a mandate, Solyco finds great assets first and then raises capital specifically for each venture. This allows them to be more flexible and diverse in their investment choices.

3. Value and Growth Stages: Chris discusses the importance of each investment stage from Seed to Series A, B, etc. He stresses that value isn't automatically created and validated at every stage; instead, growth and meeting KPIs are crucial for valuation increases.

4. Portfolio Theory in Investing: While angels often invest in single deals that can be risky, professional investment firms use portfolio theory, investing in multiple ventures to balance risks and potential rewards. This allows them to absorb losses more efficiently while aiming for high returns from successful ventures.

5. Relationship Building and Board Involvement: Chris highlights the importance of having seats on the board or being deeply involved in the companies they invest in, to have a better understanding of the business and to support strategic pivots if necessary.

Resources:

• Chris Van Dusen: https://www.linkedin.com/in/chrismvandusen
• Solyco Capital: https://www.solycocapital.com/
• Prospect Wizard: http://www.theprospectwizard.com
• Promotion Vault: http://www.promotionvault.com
• HigherDose: http://www.higherdose.com