BVP Released Internal Investment Memos

Bessemer Venture Partners' release of their internal investment memos for iconic startups like Shopify and LinkedIn offers a rare glimpse into how even top investors underestimated massive growth potential. This provides invaluable learning for founders and investors alike on the nuances of early-stage investment analysis and the inherent uncertainties in predicting unicorn success.

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Even top-tier investors can significantly underestimate a startup's future potential, highlighting the importance of making calculated risks and focusing on value-add post-investment.

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Studying these released investment memos offers invaluable insights into the analytical processes and decision-making of experienced investors.

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The release of BVP's internal memos is a rare opportunity for founders and operators to gain a deeper understanding of what investors look for and how they assess potential.

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Bessemer Venture Partners released their internal Investment Memos on Series A investment in Shopify, LinkedIn, Pinterest, Twilio Inc. and others.

For the uninformed, an Investment Memo is an internal document proposing an investment with the deal team’s analysis and why they feel it’s a winning investment.

BVP’s own estimates stated that the best outcome for Shopify will be a valuation of USD 400 mn with a 3% probability of achieving it. Today, Shopify is valued at USD 115 bn!

Seems, even the best investors are nowhere close to getting the outcome of their investment right. Best one can do is make a calculated risk assessment, invest, add value where necessary and hope for the best.

There’s a goldmine of information in these memos. Makes for a good weekend read.

BVP Investment Memos

Having written several investment memos myself, there’s clearly a lot to learn from this goldmine of a release.

Onward.