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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 simply what a market is willing to pay based on a future belief that your company will grow and non-linear rates and be worth much more in the future. We raised a seed round. About $1 million. Me: At what price? Him: It wasn’t priced. Me: With a cap?

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On Funding?—?Shots on Goal

Both Sides of the Table

Shots on Goal Being great as a startup technology investor of course requires a lot of things to come together: You need to have strong insights into where technology markets are heading and where value in the future will be created and sustained You need be perfect with your market timing. I’ve definitely been wrong on market value.

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Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. I believe that Revenue-Based Investing (“RBI”) VCs are on the forefront of what will become a major segment of the venture ecosystem.

Revenue 60
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Startups and VCs Should Avoid “Pier” Funding

Both Sides of the Table

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. Maybe the market views this as not worth the price you paid? You might have legitimate concerns that warrant not funding the ongoing operations.

Startup 290
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ProfessorVC: Why I Hate Convertible Debt.Let Me Count the Ways

Professor VC

In cases where it is truly a bridge financing (i.e. venture term sheet negotiations in progress with strong likelihood of closing), Im willing to take that risk and dont deserve a ton of reward for taking the additional risk at that point. Labels: convertible debt , seed financing , series seed. Venture News.

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Bad Notes on VC

Gust

Me: So, you raised venture capital? It’s simply what a market is willing to pay based on a future belief that your company will grow and non-linear rates and be worth much more in the future. 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.

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This Week in VC Episode 6 with @Jason Calacanis: Best One Yet

Both Sides of the Table

It’s always fun chatting with Jason because he’s knowledgeable about the market, quick on topics and pushes me to talk more about VC / entrepreneur issues. Next Wednesday we’ll have Dana Settle of Greycroft Partners, a New York / LA early-stage venture capital fund. . Short answer: no. They also avoid Reg D.

Stealth 285