Thesis Driven Investing

Bill Burnham has written one of the most important pieces on venture capital investing that I have seen in a long time. 

It’s about the rise of "thesis driven investing" and he decline of "deal flow investing".

I cannot emphasize how right Bill is with this post.

Before Brad (also Burnham but not related) and I raised Union Square Ventures 2004, we spent almost nine months developing an investment thesis for the fund.

We have stuck to that thesis and it has proven to be incredibly valuable.  We know exactly what we are looking for, we go out and find companies that fit our thesis, and we help the entrepreneurs understand how to use our thesis to impact their strategies.

This post from Bill illustrates exactly why blogging is so powerful.  I read all the trade publications on venture capital.  But none of them has captured this developing trend in the venture business.  You have to be in the business to understand what’s happening.

Thanks Bill.  Great post!