

Sandwich Fund, the New Venture Arm of Silicon Valley's Favorite Video Maker - endtwist
http://www.forbes.com/sites/ellenhuet/2015/03/03/meet-sandwich-fund-sandwich-video-venture-firm

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shiven
I don't know about you folks sitting in SV, but from a rank outsider's (me)
view, this sure looks like the tub just overflowed with soap suds!

Cue _poppity-pop_ of a SV bubble about to burst. It's for real now people!

The canary in the coal mine is not only dead, but just re-incarnated as your
VC. I'mma go fetch me some popcorn as the dot-com-bust part deux unfolds.

 _~ We 'll tak' ae cup o'kindness yet, for auld lang syne ~_

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Jack000
does Sandwich have much brand recognition outside of the startup crowd? Most
of their videos have lots of views but it's hard to separate the contribution
of the video alone vs other marketing efforts.

The video production by itself is not worth it imo, but if Sandwich videos
have inherent social proof/viral factor it might be more attractive.

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tlrobinson
I'd argue you don't want "brand recognition" in your advertising agency. I
should think "wow that's a nice video and nice product" not "oh, yet another
Sandwich video".

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TeMPOraL
So from this angle I think they failed. I myself am not a fan of their videos,
so for me it's always "oh noes, Sandwich video again...".

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area51
This is when you call a top to the market.

When service providers start deferring 100% of their fees to cash in on some
future bounty.

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kszx
Possibly.

But Sandwich Video's decision to accept equity is obviously based on an
assumption that start-ups continue to reach high valuations.

So if we're at the top, Sandwich Video is late. In that case, cash out now by
purchasing a video. The service provider will suffer the valuation loss.

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diziet
That's great -- however, for how many companies does a 100k dilution on video
is the right investment?

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kszx
If the video increases your expected valuation by another 100k or more - e.g.
by influencing other VCs' investment decisions - then it's probably the right
thing to invest in.

[This statement is inherently true by the principles of finance.]

