July, 2012

Genuine VC

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How to Evaluate Firms for a Seed VC Syndicate

Genuine VC

There are essentially two distinct basic strategies for startup entrepreneurs to raise a seed round of capital: Subscription approach – An entrepreneur sets a structure (usually a convertible note) and recruits individual angel investors who subscribe to the round, all without a term-driving lead investor. Term-driving investor approach – An entrepreneur finds a lead (quasi-)institutional venture investor to price and set the structure/dynamics of the round, working together to bring in addition

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VC Paradox: The Best of Times & Worst of Times (Part I)

Genuine VC

In the past few weeks, we’ve seen extremely positive headlines about the surge in VC fundings like “ Venture Capital Hits Highest Level Since Dot-Com Bubble.” It must be the best of times for the industry with $8.1B invested in startups during the second quarter of 2012 (the highest in a decade!) along “… with seed-round venture capital hit[ing] an all-time high ” [According to CB Insights ].

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Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

As more transparency to seed-round funding transaction details have emerged, especially with the advent of Angelist and accelerator programs (which both educate and even sometimes set terms & structure for graduating companies), I’ve noticed an increasing number of entrepreneurs signal pricing expectations much earlier in the seed fundraising process.

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On Personal Networking: Ask For and Be Specific

Genuine VC

Personal networking is a key business skill. And as a VC, I get plenty of practice doing it. As one of my former high school coaches used to put it, “Practice doesn’t make perfect. Practice makes better.” While I guess you could develop a “strategy” to networking successfully (… with many a book written about the subject), I think becoming especially productive at networking is largely tactical.