Mark Mullen is Co-Founder and Managing Partner at Bonfire Ventures, discussing portfolio management and liquidity strategy when investing across venture capital.
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“Ventures illiquid. You kind of end up having a barbell mentality where you have a lot of illiquid investments And then maybe some real liquid stuff, for example, in the stock market or just cash.”
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More from Mark Mullen
Opinion
Mullen: VC Funds Should Be Required to Publish Quarterly Returns Publicly
“I wish everybody would have to post their returns publicly every quarter. Competition. Let's see what everybody, let's see the hands people are playing. You know, this business is very opaque, right? You can be a VC and never have a return for like 10 years.”
Mark MullenJun 24, 2021▶ 38:2020VC: Optimising Investment Decision-Making in Compressed Fundraising Timelines & A Deep Dive on Portfolio Construction, Price Sensitivity and The Importance of Ownership with Mark Mullen, Co-Founder @ Bonfire Ventures
Insight
Mullen: Seed Pro Rata Signaling Risk Has Become Far Less Relevant
“One of the reasons that it was important to commit to doing your pro rata was there was this thing called signaling risk, which people were worried about. And that still is relevant today, but less relevant.”
Mark MullenJun 24, 2021▶ 17:1720VC: Optimising Investment Decision-Making in Compressed Fundraising Timelines & A Deep Dive on Portfolio Construction, Price Sensitivity and The Importance of Ownership with Mark Mullen, Co-Founder @ Bonfire Ventures
Disclosure
Mullen Went Negative Cash to Buy Stocks and Crypto in March 2020
“And for the first time ever last March, I went negative cash and I went big into the market and big into crypto.”
Mark MullenJun 24, 2021▶ 5:5720VC: Optimising Investment Decision-Making in Compressed Fundraising Timelines & A Deep Dive on Portfolio Construction, Price Sensitivity and The Importance of Ownership with Mark Mullen, Co-Founder @ Bonfire Ventures
AssertionPartly supported
Mullen: Series A Rounds Expanded to $20M on $80M Pre-Money
“What's interesting, what you're saying, though, is valuations have jumped, as we all know, and also the amount of capital the A firm is putting in. So where the A round three years ago should be six at 24, it's now 20 at 80, like you're saying.”
Mark MullenJun 24, 2021▶ 14:2120VC: Optimising Investment Decision-Making in Compressed Fundraising Timelines & A Deep Dive on Portfolio Construction, Price Sensitivity and The Importance of Ownership with Mark Mullen, Co-Founder @ Bonfire Ventures
Disclosure
Bonfire Passes on Full Pro Rata in Preemptive Series A Rounds
“Yeah, and to be honest, like, we're not, in those situations we're talking about, we're not perhaps taking the entire prorata we have, ok? So, we are managing that capital.”
Mark MullenJun 24, 2021▶ 16:1820VC: Optimising Investment Decision-Making in Compressed Fundraising Timelines & A Deep Dive on Portfolio Construction, Price Sensitivity and The Importance of Ownership with Mark Mullen, Co-Founder @ Bonfire Ventures
Opinion
Mullen: Multi-Stage Venture Firms Cannot Scale Hands-On Seed Portfolio Support
“How does a company like Sequoia invest a six hundred million dollar seed fund? How do they write a two million dollar check, let's say in a seed round, and then actually give you the full Sequoia team behind? Maybe they do that. I'm not saying they don't. I'm …”
Mark MullenJun 24, 2021▶ 18:2520VC: Optimising Investment Decision-Making in Compressed Fundraising Timelines & A Deep Dive on Portfolio Construction, Price Sensitivity and The Importance of Ownership with Mark Mullen, Co-Founder @ Bonfire Ventures
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