John Henderson, Principal at White Star Capital, offers advice to early-stage entrepreneurs on conducting reverse due diligence on prospective venture investors.
Insight
John Henderson: Reputation matters tremendously in VC, unlike in early-stage startups
“I think in, in the venture world, your reputation matters tremendously, whereas in a, you know, in a small company, it really doesn't. You just need to build something, and you can be a lot more selfish in that sense.”
Prediction Not checkable as stated
John Henderson predicted in 2015 that blockchain would disrupt the financial industry
“So I'm hugely bullish on Bitcoin. I think, though, in the short term, there will be ups and downs and, you know, maybe a few more scandals. Long term, though, I think the blockchain or, you know, this ledger, public ledger technology will be fundamentally disr…”
Assertion Partly supported
Summly's three-week integration into Yahoo News Digest set a company speed record
“Within, I think it was within three weeks of the acquisition being announced, Summly had been included within Yahoo News Digest, which is their mobile app product, and that, I still think, is the record within Yahoo for the quickest integration ever.”
Assertion Supported
Yahoo acquired Summly primarily to acquihire its core technical talent
“Yahoo was specifically after the technical people in the company. So, you know, they took the CTO, they took the head of the algorithm, they took Nick.”
Disclosure
John Henderson's first angel investment was in crypto news site CoinDesk
“Yeah, well, yeah, so my first angel investment was in a company called Coindesk, which I guess is now the leading news site for Bitcoin and cryptocurrencies.”
Assertion Partly supported
Christian Hernandez advised Summly while serving as Head of Facebook EMEA
“That was through it was through a guy called Christian Hernandez, who ran Facebook for EMEA at the time, and he was an angel investor and advisor to the company.”