1Mby1M Virtual Accelerator Investor Forum: With David Lambert of Right Side Capital Management (Part 5)

David Lambert: To talk about pivots a little more, we’ve got data across a thousand different companies that we’ve seen evolve over time. The most important thing at these early stages is cash burn.

What ends up happening is, if we invest in a company that has $10,000 MRR, they go out of the gate burning $40,000 to $50,000 a month. They probably raised a round where they’ve got 10 months of runway. Just a few months in, the company is starting to stress about the cash wall that they’re going to hit.

Roundtable Recap: May 9 – Spotlight on African Startups and Venture Capital

During this week’s roundtable, we had as our guest, Eghosa Omoigui, Managing Partner at EchoVC Partners, a firm focused on the African market. It was a fascinating discussion.

The Westland Concept

As for the entrepreneur pitches, up first we had Rui Jorge Romao from Coto, Portugal, pitch The Westland Concept. Rui wants to build a sustainable clothing brand.

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1Mby1M Virtual Accelerator Investor Forum: With David Lambert of Right Side Capital Management (Part 4)

Sramana Mitra: Pivot is a very tricky thing to manage. It’s a very tricky thing to manage from a cap table point of view. If you need to raise more capital to support a pivot, that means that your early investors didn’t really get a lot of valuation. Nonetheless, that happens. It happens very regularly.

Here’s a question that is a slightly more subtle question. I was actually coaching one of our premium members yesterday. This is a B2B SaaS company that has a couple of paying customers and has three POC’s going on right now. Their paying customers are not in the vertical where they think they’re going to build the bulk of their business.

1Mby1M Virtual Accelerator Investor Forum: With David Lambert of Right Side Capital Management (Part 3)

Sramana Mitra: What fund size are you working with to be able to do that many investments?

David Lambert: Our current fund is a $15 million to $20 million fund. We have $50 million under management across all our funds. The first fund was launched in 2012. It was pretty much proof of concept. We still did over 250 investments out of that fund.

Sramana Mitra: Have you seen exits?

1Mby1M Virtual Accelerator Investor Forum: With David Lambert of Right Side Capital Management (Part 2)

Sramana Mitra: What about sectors? Is there a B2B preference? What kind of companies do you like to invest in?

David Lambert: Our favorite business model is definitely B2B SaaS. We don’t have a particular focus where we have to invest in. What ends up happening in today’s world is that it takes a lot less capital to build a successful B2B SaaS business than it does to build a consumer business.

1Mby1M Virtual Accelerator Investor Forum: With David Lambert of Right Side Capital Management (Part 1)

Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with David Lambert was recorded in March 2019.

David Lambert, Managing Director at Right Side Capital Management, a firm that invests small chunks of capital efficient ventures. The firm is very much in line with the Bootstrapping to Exit philosophy we’ve been discussing.

Sramana Mitra: Tell us about you. Tell us about Right Side. Let’s get acquainted.

442nd 1Mby1M Entrepreneurship Podcast With Vikas Choudhury, Pivot Ventures

Vikas Choudhury is Managing Partner at Pivot Ventures, and President at Reliance Jio. He is one of the earliest Angel investors in India, and invested in early successes like InMobi and Myntra. We discuss the evolution of the Indian startup and venture capital industry.

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438th 1Mby1M Entrepreneurship Podcast With Cristobal Perdomo, Jaguar Ventures

Cristobal Perdomo is Co-founder and General Partner at Jaguar Ventures, a venture fund that invests in Latin America. 

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