Bonfire Ventures is a venture capital firm that focuses on providing early-stage funding to B2B software startups. The firm seeks to invest in companies that demonstrate strong product-market fit, scalability, and the potential to disrupt their respective industries. Bonfire Ventures offers not only capital but also strategic guidance and a network of resources to support the growth and success of its portfolio companies.

Bonfire Ventures is a leading, early-stage venture capital firm that invests exclusively in B2B software companies at seed stage. We invests deeply in our portfolio companies' success, and strive to be a founder's most responsive, trusted, and helpful advisors throughout their journey. Some of our investments include Disqo, ChowNow, Boulevard, Figment, Spekit and Invoca.

Sideqik

Brainbase

Trustpage

Olivex

Openpath

Bonfire Ventures 🔥

“Portfolio construction is crucial - winning the best deals will not be meaningful if capital is not deployed thoughtfully. 55% of all funds formed don’t return 1x.”

Mark Mullen, co-founder of Bonfire Ventures 🔥, has distilled 30+ years of investment wisdom into a 🔑 resource for emerging and established GPs: "The Art & Science of Portfolio Construction,” created exclusively for Kauffman Fellows. 

The presentation explores fundamental portfolio construction principles and demonstrates a model through a hypothetical $100M seed fund, and two illustrative exit models: one according to portfolio construction and the other deviating – highlighting the impact valuations (ownership) + recycling have on potential returns. 👀

🔍 Key takeaways: 

- Start with a clear thesis, inform your portfolio model accordingly and optimize
If you target certain ownership you have to lead - Do you have skills and $ to lead?

- Portfolio construction is both an art and a science - have a deﬁned strategy, but be open to making exceptions (and accept the role luck plays).

- The VC market has evolved - considerable crowding and competition remains from ‘20/‘21, differentiation / unique competitive advantage is important now more than ever.

- Portfolio construction involves many considerations and requires a holistic approach - but the most important (and often underemphasized) component is valuation.

- There is no deﬁnitive playbook, and models will adapt and evolve over time through market and technology cycles.

Defining your portfolio construction strategy is mission critical for success in venture capital. In fact, at the end of the day, it’s really a GP’s entire job – but understanding the nuances can be highly complex.

📈 Access the full presentation here for a breakdown and the illustrative models: https://lnkd.in/gCKUA5Dp 

Huge thank you to Mark Mullen for sharing his knowledge and allowing us to extend this resource to the #OpenLP community. 

#VC #VentureCapital #portfolioconstruction

I'm speaking at SuperVenture US West on April 8-9, 2024 at the Hilton Los Angeles Universal City, Los Angeles!

Register now and use the code FKR3555EMSPK to save 10%: https://lnkd.in/eAGe4nmk

#SVUSWest SuperReturn

COM:BONFIREVC

Bonfire Ventures

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