Phil Nadel (Managing Director @ Forefront Venture Partners) on distribution advantages

  • As your career progresses, you become a source for more advice. This begins with friends and family and expands outward.
  • Syndicate value primarily comes through customer and talent referrals.
  • Sharing your investment process provides more trust to those looking to back and support you.
  • Syndicates today rely on volume and speed over everything else.
  • Your reputation is on the line with everything deal you send to your LPs.
  • When you invest post-revenue, you are comfortable with a reduction is risk outweighing the small increase in valuation.
  • Founders should be solving for a small pain point that they have suffered through themselves. It’s impossible to understand problems if you haven’t faced them yourself.
  • CAC payback period should be between 6-12 months unless you have higher LTVs / ARPU.