Remove 2001 Remove Equity Remove Finance Remove Venture Capital
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Praying to the God of Valuation

Both Sides of the Table

Something happened in the past 7 years in the startup and venture capital world that I hadn’t experienced since the late 90’s — we all began praying to the God of Valuation. How might our next phase of the journey seem brighter, even with more uncertain days for startups and capital markets? What happened? Until we weren’t.

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7 Attributes of An Entrepreneur's Startup Dream Team

Startup Professionals Musings

There is a common belief in the angel and venture capital community that you put your money on the best team, rather than the best idea. Even if your product is a technological marvel, I look for balanced strength on the team in finance, marketing and operations. Solo entrepreneurs rarely find an investor.

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Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? It’s like we need a finance 101 course for entrepreneurs. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. “But lawyers will charge much more for equity.”

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The Changing Venture Landscape

Both Sides of the Table

And the loosening of federal monetary policies, particularly in the US, has pushed more dollars into the venture ecosystems at every stage of financing. how on Earth could the venture capital market stand still? What Has Changed in Financing? What Does this Mean for a Venture Capital Firm?

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What’s Really Going on in the VC Industry? What Does it Mean for Startups?

Both Sides of the Table

The VC industry grew dramatically as a result of the Internet bubble - Before the Internet bubble the people who invested in VC funds (called LPs or Limited Partners) put about $50 billion into the industry and by 2001 this had grown precipitously to around $250 billion. Nobody understands this better than First Round Capital.

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Working for Equity Instead of Cash

genylabs.typepad.com

Working for Equity Instead of Cash. has an article on service firms waiving their fees and instead taking equity in their clients. Interest in this waned when the Internet bust resulted in most tech start-up equity becoming worthless, but it seems to be coming back. The best start-up I ever invested in went bankrupt in 2001.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

I guess that makes USV, Spark Capital, Foundry Group, Accel, Benchmark, Revolution (along with several others) pretty happy right now. Or worse yet they may never get financed. Raise at “ the top end of normal &# but not so high that future financings in a corrected market become impossible. And well they should be.