Scott Kupor explains the new realities of accessing venture capital

Abstract

Purpose

Interview with Scott Kupor, a managing partner at Andreessen Horowitz (AH Capital Management LLC), a private American venture capital firm founded in 2009. Its investments span the mobile, gaming, social, e-commerce, education and enterprise IT – including cloud computing, security, and software-as-a-service industries.

Design/methodology/approach

Kupor’s book, Secrets of Sand Hill Road: Venture Capital and How to Get It (Portfolio, 2019) can be used as a handbook for strategizing about venture capital deals, how to partner with multiple venture capitalists and how to assess new business ideas and market opportunities.

Findings

Kupor was interviewed to obtain a venture capitalist’s perspective on the strategic guidelines for starting up an innovative business.

Practical implications

One of the key issues that VC investors seek to understand is, Why is this particular team best positioned to win the market versus any of the others that might approach the same opportunity? The team in many ways can become more important than the original business idea, particularly since we know the market and product will evolve over time.

Originality/value

Kupor warns that competition is growing more intense. The cost of starting a business is much lower than in the past. However, given the widespread availability of talent, it is unlikely that most startups will have the field to themselves.

Citation

Davidson, A. (2019), "Scott Kupor explains the new realities of accessing venture capital", Strategy & Leadership, Vol. 47 No. 6, pp. 24-27. https://doi.org/10.1108/SL-06-2019-0088