conviction

Definition

A VC's strong belief in an investment thesis despite contrary evidence or market skepticism. The confidence to write a check when everyone else thinks you're insane—sometimes brilliance, often delusion.

Example Usage

She had deep conviction in vertical SaaS for funeral homes, a thesis that seemed bizarre until the company hit $50M ARR.

Origin

Investment management philosophy emphasizing concentrated positions

Fun Fact

High-conviction investors typically make fewer, larger bets—the opposite of spray-and-pray strategies—and are either spectacular winners or catastrophic losers.

Source: Investment philosophy and portfolio management theory

Related Terms

Beginner

bootstrapped

Building a company with personal savings, credit cards, and stress ulcers instead of venture capital—either a badge of honor or an excuse for slow growth, depending on your exit results. It's entrepreneurship on hard mode.

🚀 Startup / VC

Intermediate

fully diluted

A calculation of ownership percentages that includes all possible shares—options, warrants, convertible notes, and that napkin the founder signed in 2009. The number that reveals how little of the company you actually own.

🚀 Startup / VC

Intermediate

rolling close

A fundraising approach where a startup accepts investor commitments and transfers shares on multiple dates instead of a single closing. It's like a progressive dinner party for term sheets.

🚀 Startup / VC

Advanced

tiger cub

Venture funds started by former Tiger Global partners or investors, inheriting their aggressive growth-at-all-costs investment philosophy. They're the offspring that learned well from their parent's playbook.

🚀 Startup / VC

Beginner

bridge round

Emergency funding meant to tide a startup over until the 'real' funding round happens, often at desperate terms. Named after a bridge because you're hoping it doesn't collapse before you reach the other side.

🚀 Startup / VC

Intermediate

micro-VC

A venture fund typically under $50M that invests small checks in very early-stage startups. They offer founder-friendly terms and actual attention, mainly because they can't afford fancy offices or ignore their investments.

🚀 Startup / VC

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