The Merits of Bottoms Up Investing - by Brett.Bivens

For venture investors, a clearly articulated investment thesis is part and parcel to a good elevator pitch — the way that those you are doing business with quickly size you up. LPs want to back VCs that possess a strong point of view on the future that they are deploying capital against. Founders, used to being led astray, want confidence that they fit within a VC's investment mandate and are therefore not wasting their time. And in building relationships with other VCs, a clearly articulated thesis becomes a way of developing influence, staying top of mind for co-investors or increasing the likelihood downstream investors will mark up your earlier bets. Tell a better story, fundamentals be damned. To be sure, a cogent investment thesis in the right hands is a powerful thing. As USV's Rebecca Kaden recently noted, the best thesis-driven firms often develop their perspective in a very organic fashion. But the peril lies in the idea some investors have about their own skills in developin

For venture investors, a clearly articulated investment thesis is part and parcel to a good elevator pitch — the way that those you are doing business with quickly size you up. LPs want to back VCs that possess a strong point of view on the future that they are deploying capital against. Founders, used to being led astray, want confidence that they fit within a VC's investment mandate and are therefore not wasting their time. And in building relationships with other VCs, a clearly articulated thesis becomes a way of developing influence, staying top of mind for co-investors or increasing the l