ngmoco was a hugely successful mobile games business that exited last year for $400m and in the entertaining video below Neil Young the founder and CEO talks about some of what he learned. In addition to a couple of the old chestnuts that are worth remembering (commitment is everything, try to raise money when you don’t need it) he gives an example of value add from one of his investors, Mike Maples. This description is from Vator.tv:
On stage, at a recent Vator splash event, Neil Young, the founder of ngmoco, recounted a pivotal moment where Mike Maples, one of his angel investors and board observers, made a key insight about their business model: (right around minute 20:30) – having an experienced entrepreneur and angel investor at the table at that moment added a tremendous amount of value.
I highlight this example because this sort of value add from VCs is hard to describe in the abstract and why most people talk about introductions when describing how their VC has helped. I believe that good-great VCs add a lot more value via this sort of insight and advice than they do through their rolodexes.
UPDATE – the video was autoplaying on page load and after 30mins of trying I gave up trying to work out how to stop it and decided to simply post this link instead. Sorry to anyone who suffered an ad blast.