VC by the Numbers discussed “Triple Crowns” and why these make for the best investments as compared to “unicorns”. In this blog (and in my book) I argue unicorns are overrated on a regular basis.

What are “Triple Crowns” ? From Unicorns are overrated, Triple Crowns are Better:  These are the financing that met these three conditions:

1.”Realized a cash-on-cash multiple of at least 10X, and
2. Realized an IRR of at least 100%, and
3. VCs invested at least $1M. “

Correlation Ventures studies have shown that while unicorns make up some 3% of ventures financings since 2006, triple crowns make up only 2%. CV’s David Coats expresses his belief that the focus on unicorns and later stage-greater need for financing is an unhealthy trend for the VC industry.

How are you training for 2019 ?

Since we’re still at the beginning of the year, are you implementing anything new and exciting in your workout ?

A buddy of mine talked to me about Spartan SGX or Spartan Strong Classes and told me to try it out. Here is the link for those type of classes. (these are 90-minutes long)

Winter[fell] is here in 2019

In 2017, I wrote a best-read post on the Season 7 of the Game of Thrones. The expectations are high for this year’s final season. Let’s remember:

“The common shares are overvalued by 58 percent on average, and for almost half of unicorns “fair valuation” dips below the billion-dollar threshold.”

“Whether or not we will see a crash on anything like the scale of the bursting of the Dot Com bubble is similarly difficult to say with certainty, depending as it does on which dominoes fall first and how hard investor confidence is hit. But suffice it to say, there will be some major casualties.” -IS

Reference: Gornall, Will and Strebulaev, Ilya A., Squaring Venture Capital Valuations with Reality (February 27, 2018). Stanford University Graduate School of Business Research Paper No. 17-29. Available at SSRN.

Quote of the day: “You never know what is enough unless you know what is more than enough.”-William Blake