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Venture Capital and the descent into irrelevance

Portfolio Planning July 9, 2010

The bigger the risk, the bigger the reward. Elemental finance: you assume the amount of risk suitable for an expected payoff. You assume bigger risk and its bigger payoff with the full caveat that there is an equally big downside loss that could happen. Invest in a money market and get slow, steady, decimal-point-% returns; [...]

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Human capital risk, now that’s real risk

Portfolio Planning June 24, 2010

You commonly hear an equity firm or VC partner claim, we invest in the people and when it comes to costs, human capital usually represents nearly 70% of all operating costs.  Human capital risk is the real risk, but most investment firms don’t focus investment decisions and deal valuation not on quantifying the people or [...]

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Sam Thompson, Vice President, Progress Partners

Impact May 19, 2010

“Toby regularly demonstrates a noble ability to think on his feet when offered the challenge. He has a sound ability to quickly ramp up with a team, conceptualize process, communicate the options back to the room, and then provide actionable dialogue. “When a business or team becomes out of sync with it’s market, customers or [...]

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Human capital assessments – the symptom or the disease

Organization Behavior April 14, 2010

The drive to evaluate operations and to contain costs is mistakenly applied as an operational issue across the board.  Too often human capital assessments are lumped into the systems theory world of process and become a technical asset for management’s diagnostic view for cuts.  The result becomes an assessment or evaluation process that is really [...]

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Why Startups Should ALWAYS Compromise When Hiring? — Never!

Organization Behavior August 12, 2009

Reading a blog on the venture capital website Start Up Hire called: Should Startups Compromise When Hiring? I found a reference to a blog Dharmesh Shah, Chief Technology Officer & Founder of Hubspot* and Onstartups.com, wrote, “Why Startups Should ALWAYS Compromise When Hiring?”. I posted a comment to the blog as I felt Start Up [...]

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The VC’s missing formula: human capital discounted cash flow

Portfolio Planning August 5, 2009

What valuation models measure human capital ability to meet financial and strategic business goals? What formulas are used to measure human capital contribution to profits? What are the human capital risk factors you justify when you build your financial statements and projections?  Accounting’s assignment of assets and liabilities and financial management’s current or pro forma [...]

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