Jigar Patel ’13
My Experience
NYC seed is an early-stage venture capital firm that invests specifically in NYC-based startups. It provides seed capital to startup companies with an innovative idea, an attractive market, a sustainable business model, and a dynamic team. My primary responsibilities for the summer were to identify startups in NYC that both satisfied the aforementioned criteria and filled a gap in NYC Seed’s existing portfolio. We discovered these companies through direct contact, referrals, startup pitch events, and searching the web. Afterwards, we performed due diligence on the startups’ proposed solution, its competitive landscape, the market size, and the founding team’s background and skillset. I was also responsible for contacting the founders and setting up a meeting to discuss the venture in greater detail. With the approval of Owen Davis, the managing director, we invited the teams to come pitch to NYC Seed investors at the monthly board meeting.
My other responsibilities included the planning of NYC SeedStart, a 3-month accelerator program focused on enterprise technology solutions. I helped create the marketing documents, update the website, and reach out to potential VC partners. I even had the opportunity to drive up to Saratoga Springs to present to the board of Upstate Venture Association of New York (UVANY) to ask for their participation and assistance in spreading the word about the NYC SeedStart program.
I was able to utilize skills gained in my Venture Capital Investment Decision Making class to better identify and analyze companies worth investing in. It helped me understand how VC investment deals are structured. Utilizing cap tables, I was able to analyze the startups’ financial projections and determine whether it could provide an attractive return on investment. I was also able to understand which investment vehicles to use (convertible debt vs. equity investments) and how to create the term sheet.
The biggest challenge was taking on the investor role and talking to successful entrepreneurs, who at times were older and much more experienced. I had to fully understand NYC Seed’s investment philosophy and explain our value proposition to incoming entrepreneurs. The position also required me to be gain a deep understanding of the current startup landscape and quickly discern investment opportunities.
The biggest takeaway for me was the importance of networking. The ability to expand your network within the VC community allows you to stay on top of attractive investment opportunities and participate in syndicate deals. The VC industry is relatively small with a limited number of firms. I learned that building healthy relationships with other investors is the only way to succeed in this business. As a summer associate, I had the opportunity to expand my network and build personal relationships with many of the prominent VCs in the city.
