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Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? Convertible notes were previously used primarily for “inside rounds” in which the existing investors provide you with bridge financing to get to the next round. We raised a seed round. About $1 million. Me: At what price? Him: It wasn’t priced.

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On Funding?—?Shots on Goal

Both Sides of the Table

We’ve had two companies where we had to bridge finance them several times before they eventually IPO’d We had a portfolio company turn-down a $350 million acquisition because they wanted at least $400 million. Early-stage venture capital is about extreme winners. It sold to Amazon for > $1 billion.

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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. Village Capital: Alternative Investment Strategies to Drive Inclusive Innovation.

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SEC Defines Venture Capital

Venture Chronicles

The SEC fulfilled their obligation under the Frank-Dodd financial reform bill and defined what venture capital is. Represents itself to investors as being a venture capital fund. Bridge financing. Treasury securities with a remaining maturity of 60 days or less, or cash.

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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. Tags: Entrepreneur Advice Raising Venture Capital Start-up Advice Startup Advice. But piers are often counter productive.

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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. The Most Important Venture Capital Statistic. Venture News.

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Bad Notes on VC

Gust

Me: So, you raised venture capital? Convertible notes were previously used primarily for “inside rounds” in which the existing investors provide you with bridge financing to get to the next round. On the phone …. We raised a seed round. About $1 million. Me: At what price? Him: It wasn’t priced. Me: With a cap?