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Bessemer Venture Partners shares their Investment Memos


winjitsu
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Ah, the innocent and cheap times of Internet business childhood. The time when you could invest into a company running 160K monthly site visits and ~1M monthly page views at $13M pre-money. https://www.bvp.com/memos/yelp

 

To be fair Yelp is probably one of the crappiest investments from the list they posted.

 

In 2011, Pinterest was valued at $40M pre-money with 1M monthly unique visitors and 20M page views. https://www.bvp.com/memos/pinterest

(I love how they call a company with 1M/20M monthly "a very early-stage ... company"  ::) )

 

I don't get a deal flow like BVP, but my impression is that nowadays you get pre-revenue, pre-product angel pitches at $10-40M cap. Either this is just crappy deals going to not-big-name angels or it's the price inflation. I think it's both.

 

Where are the memos for the investments that didn't work out?

 

They are not there. But you can look at the list of comparables/competition mentioned in memos and see how they did. Assuming ~5 competitors per pitch, where most did not survive (though they might have been acqui-hired), the outcome is something like <20% blow out return rate. Likely the rate is closer to <10%. To be fair, Pinterest memo assigns 1% probability to Pinterest going public at 850M valuation, so it's not as if the positive outcomes are vastly oversold.

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