Greylock partner offers up his VC outfit's investment framework Speaking about Funding Online Video Ventures at NewTeeVee Live 2008's VC Panel entitled "Online Video Investment Trends" James Slavet (partner at Greylock) explains their valuation framework for investments, whose foundations stand on three pillars:Identify teams which have strong product leadership and instinctive comprehension of the markets that the pursue.Pursue market components/segments that are large, growing, and of strategic importance.Favor business models that scale with capital efficiency (i.e. increasing returns-to-scale).Within online video, there are a few trends that Greylock finds interesting. One is the migration of professional video content to the web, which may emphasize how material originally produced for SD broadcast/cable/satellite becomes re-purposed. James cites the statistic "25 percent of the views generate 95 to 98 percent of the revenue". ... [ Read more ]