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From Private Equity to CVC: Steven N. Kaplan, One of the Galaxy’s Top Experts, Shares His Research
- Steven N. Kaplan views venture capital, private equity, and corporate venturing as a spectrum focusing on innovation, optimizing existing businesses, and strategic investments.
- Kaplan's journey into the startup world began when he took over teaching entrepreneurial finance and launched a business plan competition, leading to the Ed Kaplan New Venture Challenge.
- Half of venture investments lose money, highlighting the importance of a strong business model over just a great founder.
- Kaplan's OUTSIDE/IMPACTS framework helps evaluate startups based on their business potential and management team.
- Private equity firms focus on acquiring and improving existing companies, while venture capital invests in building new businesses.
- Corporate venture capital bridges the gap between startups and buyouts, offering industry expertise and strategic insights.
- Effective startup CEO traits identified by Kaplan include execution, strategic thinking, and the ability to get the job done.
- Kaplan stresses the significance of strong corporate governance to prevent business failures like FTX and WeWork.
- Founders should choose board members who challenge them for accountability and strategic growth.
- Understanding venture capital deal structures is crucial for founders seeking early-stage fundraising.
- Kaplan advises founders to be strategic in choosing investors who offer more than just capital, such as support, networking, and long-term guidance.
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