Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. on the entrepreneur side of the table) when I raised at too high of a price. This is wrong.

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Venture Capital Term Sheet Valuation Stock Options 282

Both Sides of the Table

AUGUST 24, 2015

I’ve seen friends (and family members) lose much of their savings that way over the years because “Black Swans” happen and in 1987, 2001, 2003 & 2008 (just to name a few from my memory) huge market gyrations caused much financial distress to people seeking short-term gains. I know what I don’t know.

Stock 150

Stock Finance Marketing Valuation 150

Feld Thoughts

APRIL 3, 2011

This has been going on for at least a quarter or two, but the velocity of it seems to have picked up with a wave of high priced financings along with large financings for nascent companies. But more interestingly I saw it in my twitter feed from some entrepreneurs and VCs who I respect a lot.

Entrepreneur 143

Entrepreneur Finance Internet Web 143

Both Sides of the Table

SEPTEMBER 18, 2014

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Feld Thoughts

AUGUST 5, 2011

Today is Finance Friday and post #2 has been drafted by the Finance Friday team from University of Chicago Booth and is waiting for my edits. I’m procrastinating so I thought I’d write one of my periodic public service announcement for entrepreneurs. As an entrepreneur, this was all noise. Down – cranky.

Stock 155

Stock Entrepreneur Chicago Finance 155

VC Adventure

SEPTEMBER 20, 2019

That blog post – which turned into one of my most read posts ever – grew out of a study done by Correlation Ventures showing the distribution of outcomes across over 21,000 financings during the years 2004-2013 as well as some of my own observations. The vast majority (almost 2/3rds) of venture financings fail to return capital.

Marketing 91

Marketing Venture Capital Finance Portfolio 91

Both Sides of the Table

SEPTEMBER 29, 2009

Just ask anybody who was trying to close funding the fateful week of September 11, 2001 or even March 2000. But any entrepreneurs raising capital should keep in mind that this opening of the markets could possibly be temporary.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Berkonomics

JUNE 1, 2023

It is the focus for state and federal governments worldwide, many finding ways to reward innovators with tax incentives or investors with tax credits to finance innovative new enterprises. It is not hard to find strands of gold in the carnage left by failed businesses lost when a bubble bursts, such as in 1857, 1902, 1929, 2001 and 2008.

Artificial Inteligence 62

Artificial Inteligence United States Chicago Internet 62

The Startup Magazine

AUGUST 11, 2017

Joe Zhu is a quick study with a natural desire to offer assistance anytime, anywhere startups face marketing, operational, and financing challenges. So read on and be inspired… At 30 Years of Age, Tianyi Joe Zhu, Chicago Entrepreneur, Named Amongst the Outstanding 50 Asian Americans in Business.

Illinois 78

Illinois Chicago Entrepreneur Cofounder 78

Both Sides of the Table

OCTOBER 19, 2009

I had previously raised VC in 1999, 2000, 2001 and 2005. Experienced and serial entrepreneurs in the content management space. I met a lot of really bright people that were passionate about and experienced in helping entrepreneurs build successful businesses. Page 2: What’s unique about Koral. Folksonomy. Free product.

Venture Capital 274

Venture Capital Term Sheet San Diego Viral 274

Steve Blank

SEPTEMBER 14, 2009

One of the biggest mistakes entrepreneurs make is misunderstanding the role of venture capital investors. There’s lots of lore, emotion, and misconceptions of what VC’s do or don’t do for entrepreneurs. What this meant for entrepreneurs and VC’s was simple– the gold rush to liquidity was on. What Do VC’s Do?

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Steve Blank

JANUARY 17, 2016

These topics were the focus of interviews with the latest guests on Entrepreneurs are Everywhere , my radio show on SiriusXM Channel 111 (airing weekly Thursdays at 1 pm Pacific, 4 pm Eastern.) ” This was around 2001. Yet this same network of connected people affects who gets funded, how startup teams form, and who gets hired.

Silicon Valley 120

Silicon Valley North Carolina Cofounder Entrepreneur 120

Babbling VC

AUGUST 10, 2011

OK, hands up, who's truly surprised by the drop in the stock markets or the postponed tech IPO's or even the upcoming slowdown in venture financing? I am seriously babbling like everyone else did in 2001, 2008 and now again in 2011. A younger generation of entrepreneurs have established themselves and continue to innovate.

Germany 76

Germany Stock IPO Valuation 76

Startup Lessons Learned

JUNE 22, 2020

The Economic Antidote to COVID-19 Eric Ries & Ryan Beck In 2001, Apple's revenue fell by 33% in the depths of the dotcom bust. In private markets, entrepreneurs scrutinize investors before taking their money. Smart entrepreneurs take all of that into account when making decisions about whom to partner with.

Silicon Valley 60

Silicon Valley Equity Stock Finance 60

Feld Thoughts

JULY 9, 2013

This is the latest book in the Startup Revolution series of books that include Startup Communities: Building an Entrepreneurial Ecosystem in Your City , Startup Life: Surviving and Thriving in a Relationship with an Entrepreneur , and Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist.

Startup 141

Startup Finance Community Founder 141

ReadWriteStart

NOVEMBER 5, 2019

As an entrepreneur, you have probably heard or read the “maxim” that only 10% of startups are successful, but is this true? These results were obtained after the following rounds of financing of more than 1000 technology companies in the United States. Where you can turn when you need financing quickly.

Venture Capital 77

Venture Capital Cofounder Finance United States 77

Both Sides of the Table

JUNE 28, 2010

One of the most difficult things to do as a first time entrepreneur is to get to know the investors you might be working with if you accept money. He got into the industry through the same traits required for entrepreneurs – persistence & resiliency. This lasted from about 2001-2004. Venture Financings we Discussed.

San Francisco 230

San Francisco Los Angeles Cofounder SMS 230

The Startup Magazine

NOVEMBER 13, 2018

What have entrepreneurs been up to since then? Belnick founded BizChair.com with $500 in 2001. Investments from capital markets to real estate plummeted. Ten years have passed since this crisis occurred. Well, here is a comprehensive list of 10 of the most successful investors of the last 10 years. Source: Pexels. Sean Belnick.

Cofounder 142

Cofounder Venture Capital India Valuation 142

500hats.com

AUGUST 2, 2012

While a flood of new VCs came into existence during the late 90’s internet boom, many had difficulty raising new funds after the crashes of 2000-2001 and 2008 , and as a result significantly fewer fund managers exist now compared to a decade ago. Rise of Y Combinator, 1st Branded Entrepreneur Guild. and no, we didn’t.

Silicon Valley 74

Silicon Valley Early Stage Venture Capital Valuation 74

Berkonomics

APRIL 20, 2017

It is the focus for state and federal governments worldwide, many finding ways to reward innovators with tax incentives or investors with tax credits to finance innovative new enterprises. It is not hard to find strands of gold in the carnage left by failed businesses lost when a bubble bursts, such as in 1857, 1902, 1929, 2001 and 2008.

Artificial Inteligence 102

Artificial Inteligence United States Chicago Open Source 102

Gust

SEPTEMBER 17, 2014

Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. It’s like we need a finance 101 course for entrepreneurs.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

FEBRUARY 8, 2010

First, I would say that most entrepreneurs do almost no reference checks or at least do them very informally. For some reason most entrepreneurs do. I always tell entrepreneurs, “in good times of course everybody loves their VC. My chips were down in late 2000 / early 2001. Don’t let that be you. Except GRP.

Venture Capital 288

Venture Capital Term Sheet Cofounder Partner 288

genylabs.typepad.com

SEPTEMBER 24, 2011

The Changing Face of Entrepreneurs. The Connected World of Entrepreneurs. Entrepreneur Magazine Blog. I wont bother going into details on start-up financing terms ( see this post for an overview of typical VC terms) except to say if you dont know and understand: the firms cap table and valuation. immigrant entrepreneurs.

Equity 40

Equity Technical Review San Jose Stock 40

Both Sides of the Table

SEPTEMBER 27, 2010

These days that’s not the case and it’s a great outcome for entrepreneurs and for innovation. A: Only because it’s a nicer branding for entrepreneurs. I totally agree and have been arguing this to entrepreneurs for years. I always counsel young entrepreneurs to start on the local train.

Liquidity Event 308

Liquidity Event Silicon Valley Seed Stage Finance 308

Startup Lessons Learned

MAY 1, 2018

I’m a partner in his latest venture, the Corporate Entrepreneur Community (CEC) , the newest addition to his long history of reinvention work that spans industries ranging from football to banking. It didn’t matter if it was a tech company, a finance company, or a manufacturing company.

Southern California 123

Southern California North America Finance Lean 123

Both Sides of the Table

MARCH 11, 2010

I’ve seen too many entrepreneurs try to do things on the cheap. But there are also problems / risks: - the funding environment might change dramatically – there may never be a next round (see: March 2000, September 11, 2001 and September 2008). - But the lower end also has risks. Should you take it? add a buffer.

Venture Capital 319

Venture Capital Startup Silicon Valley Warrant 319

Steve Blank

APRIL 13, 2013

In the few days I was in China I met with several VC’s, angel investors, business press and spoke to hundreds of entrepreneurs. We had a fireside chat with a room full of eager entrepreneurs. If it’s driven by profit then the ecosystem needs both entrepreneurs as well as Venture Finance. Entrepreneurship in Beijing.

Silicon Valley 267

Silicon Valley China Venture Capital Merger 267

Feld Thoughts

JUNE 1, 2015

I don’t think I’ve ever physically been in the same place as Ben, but we’ve exchanged emails in the past and he was willing to allow me to republish his classic essay The Struggle in the book I wrote with my wife Amy – Startup Life: Surviving and Thriving in a Relationship with an Entrepreneur.

Startup 70

Startup Term Sheet Merger Finance 70

BeyondVC

AUGUST 9, 2006

As an entrepreneur, it is important to invest for the long term and not make short term decisions because you think you will be acquired (see an earlier post – Companies are bought and not sold ). And as I am sure many entrepreneurs know, you can’t spend GAAP Net Income but you can spend cash.

Technical Review 60

Technical Review IPO SEC Stock 60

Hearpreneur

APRIL 19, 2019

To find our domain, and therefore name, I created an excel sheet that had one column of ‘primary’ words like fund, finance, deal etc. I came up with my business name, Kate’s Theatrics at about 9pm April 14, 2001. We also knew that one-word.com domains are either insanely expensive ($1 million+). Thanks to Alex Vale, Fundstack !

Naming 110

Naming Cofounder Wisconsin Entrepreneur 110

rapidrollout.wordpress.com

JANUARY 15, 2011

Web Startup Lessons Advice from a CTO and Entrepreneur Home About Startup Advice: When to Use a Consulting CTO There are not many to be found. Most likely, this is a person who is a serial entrepreneur and was the chief technology officer for two or more web startups. .&# Why are consulting CTOs so scarce?

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

K9 Ventures

SEPTEMBER 24, 2009

Besides I was a young, first-time entrepreneur at the age of 23. This also eliminated the big risk for my potential investors that I wouldn’t be able to stay in the country, and so I was able to close the financing round for the company in November 1998. I got my greencard approval in 2001, a few months after 9/11.

United States 114

United States Founder India Venture Capital 114

Both Sides of the Table

DECEMBER 13, 2010

Within a year, by late 2000 / early 2001 consulting firms were firing people en masse. On July 27th, 2001 Accenture IPO’s and many of the partners grew fabulously wealthy. I’m certain that if you look at every single one of the entrepreneurs who’ve gone on to build big, enduring businesses they were unfundable once too.&#.

Turkey 302

Turkey Differentiation IP Technical Review 302

Steve Blank

APRIL 13, 2013

In the few days I was in China I met with several VC’s, angel investors, business press and spoke to hundreds of entrepreneurs. We had a fireside chat with a room full of eager entrepreneurs. If it’s driven by profit then the ecosystem needs both entrepreneurs as well as Venture Finance. Entrepreneurship in Beijing.

Silicon Valley 159

Silicon Valley China Venture Capital Merger 159

Feld Thoughts

APRIL 21, 2016

Bill Gurley wrote an incredible post yesterday titled On the Road to Recap: Why the unicorn financing market just became dangerous … for all involved. Entrepreneurs and CEOs should make the hard call today and take the poison and move on. Why is this so hard for us a humans, entrepreneurs, investors, and everyone else involved?

Marketing 70

Marketing Down Round Startup IRR 70

Campus Entrepreneurship

DECEMBER 23, 2010

When I attended between 1998-2001, there were a few course on entrepreneurship (entrepreneurial finance, entrepreneurial strategy, etc.), From Chicago’s Booth School of Business : The only two serial entrepreneurs in Chicago who can answer those questions have agreed to share what they know with students at Chicago Booth.

Cofounder 61

Cofounder Chicago Founder IPO 61

Both Sides of the Table

DECEMBER 18, 2009

This is part of my new series on what makes an entrepreneur successful. I originally posted it on VentureHacks , one of my favorite websites for entrepreneurs. Resilience is one of the tell tale signs of an entrepreneur. This was soon after the bursting of the dot com bubble – in early 2001.

Germany 298

Germany Entrepreneur Merger Los Angeles 298