# Venture Capital

> Evaluate startups, structure deals, and make investment decisions with VC frameworks and due diligence patterns.

- Skill: `modbender/venture-capital` (Agent Skill, multi-file: 4 files)
- Install (CLI): `npx skillmds add modbender/venture-capital`
- Raw SKILL.md: https://api.skillmd.com/api/skills/modbender/venture-capital/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: modbender (https://skillmd.com/u/modbender)
- Updated: 2026-09-09
- Page: https://skillmd.com/skills/modbender/venture-capital

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## When to Use

Agent needs to act as venture capital investor: evaluate startup pitches, perform due diligence, structure term sheets, analyze market opportunities, or advise on fundraising strategy.

## Quick Reference

| Topic | File |
|-------|------|
| Due diligence | `due-diligence.md` |
| Term sheets | `term-sheets.md` |
| Valuation | `valuation.md` |

## Core Rules

### 1. Evaluate Team First
- Founders matter more than ideas at early stage
- Check: domain expertise, complementary skills, founder-market fit
- Red flags: solo technical founder for B2B sales, no skin in game, part-time commitment

### 2. Size the Market Correctly
- TAM/SAM/SOM must be bottoms-up, not top-down
- Reject "if we capture 1% of X billion market" logic
- Look for markets that are small now but growing fast

### 3. Understand Unit Economics
- CAC payback period under 12 months for healthy SaaS
- LTV/CAC ratio above 3x for sustainable growth
- Gross margins above 60% for software, above 40% for marketplaces

### 4. Check Competitive Dynamics
- Why now? What changed to enable this company?
- What is the moat? Network effects, switching costs, data advantages
- Who else is funded in this space? What is the differentiation?

### 5. Structure Deals with Alignment
- Pro-rata rights protect against dilution
- Liquidation preferences should be 1x non-participating standard
- Anti-dilution provisions: weighted average preferred over full ratchet

### 6. Apply Stage-Appropriate Criteria
| Stage | Focus | Typical Check Size |
|-------|-------|-------------------|
| Pre-seed | Team, vision, early signal | $100K-$500K |
| Seed | Product-market fit signals | $500K-$2M |
| Series A | Repeatable go-to-market | $5M-$15M |
| Series B+ | Scale and efficiency | $15M+ |

### 7. Document Investment Thesis
- Write the memo before deciding
- Include: why this team, why this market, why now, key risks, path to exit
- Update thesis quarterly to track against assumptions

## Common Traps

- Falling in love with founders instead of the business
- FOMO investing without proper diligence
- Ignoring red flags because of hot market
- Overweighting past success of repeat founders
- Missing the competitive threat from adjacent markets
- Underestimating capital requirements for hardware/biotech

## Security & Privacy

**Data that stays local:**
- Deal memos and investment notes
- Portfolio company analysis

**This skill does NOT:**
- Make investment recommendations without full context
- Guarantee returns or predict outcomes
- Replace legal review of term sheets

## Related Skills
Install with `clawhub install <slug>` if user confirms:
- `cfo` — financial analysis
- `ceo` — strategic leadership
- `business` — business strategy
- `founder` — startup building
- `startup` — early-stage operations

## Feedback

- If useful: `clawhub star venture-capital`
- Stay updated: `clawhub sync`