The Next Web

MARCH 8, 2014

Jason Lemkin is the Managing Director at Storm Ventures , a venture capital firm focusing on early-stage enterprise and IT companies, including MobileIron , Marketo and GuideSpark. From the standpoint of a founder, the life of a venture capitalist can seem very, very different.

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Partner Burn Rate Early Stage IPO 138

Up and Running

DECEMBER 11, 2013

Investors like valuation to relate to actual business numbers, such as sales, gross margin (price less direct costs), and burn rate or fixed costs. Some service businesses — web services are a great example — are also scalable, even though they sell services. It’s simple math. . Market Size. A product business is scalable.

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Valuation Oregon Burn Rate Angel Groups 136

Professor VC

MARCH 10, 2009

In other parts of the country, this is business as usual: Identify a customer need Build a product Sell the product In the valley, the knee jerk reaction is to start with the powerpoint deck and look for the venture capital drug. Jon Fisher purposely avoided raising venture capital in his ventures. Venture News.

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Bootstrapping San Jose Silicon Valley Software Review 28

Professor VC

JANUARY 20, 2009

The Most Important Venture Capital Statistic. Labels: bootstrapping , CFO , Fliqz , venture capital , venture financing. The Most Important Venture Capital Statistic. Congratulations on the Best Venture Capital Investment. Venture News. ProfessorVC. Tuesday, January 20, 2009.

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Venture Capital Silicon Valley San Jose Bootstrapping 28

Steve Blank

NOVEMBER 2, 2009

In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.) In times when venture capital is hard to get, investors extract high costs for failure (down-rounds, cram downs , new management teams, shut down the company.)

Lean 244

Lean Silicon Valley Startup RSS 244

ReadWriteStart

JUNE 13, 2011

The combination of Venture Capital and technology startups is only about 50 years old. Rather than invent a new form of corporate governance, venture investors adopted the traditional board meeting structure from large corporations. Because We've Always Done It This Way.

Silicon Valley 117

Silicon Valley Balance Sheet Metrics Early Stage 117

Steve Blank

SEPTEMBER 17, 2009

Customer Development is Low Burn by Design The Customer Development process keeps a startup at a low cash burn rate until the company has validated its business model by finding paying customers. But if you have a web based product the right answer may be 300-500. The absolute number depends on your channel and industry.

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Customer Development Developer Customer Silicon Valley 242

Professor VC

SEPTEMBER 2, 2010

While VC firms have been easy to find from the old school days of Pratts Guide to Venture Capital , to the early web presence of the 1990s and the current web sites, blogs, twitter feeds, facebook fan pages and sites such as The Funded , angels are still a bit harder to track down. Venture News. ► July. (1).

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Angel Investor Angel Groups San Jose Venture Capital 28

BeyondVC

JUNE 11, 2007

We all know the story – it is incredibly cheaper to start a web-based business versus 5 years ago with the rise of open source software and commodity servers. Getting in earlier also allows these venture debt firms to buy more of the company from a warrant perspective than getting in on later rounds.

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Intellectual Property Covenant Warrant Equity 60

Professor VC

JANUARY 17, 2008

I put up my Bodega Partners web site in 1995 and it served its purpose for a number of years, but I just didnt spend the energy to keep it current and finally just took it down last month. The Most Important Venture Capital Statistic. Congratulations on the Best Venture Capital Investment. Venture News.

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Silicon Valley San Jose Angel Investor Venture Capital 31

thestartuplawyer.com

FEBRUARY 24, 2010

And for the love of high-speed internet and all things Web 2.0, Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM He obviously never launched a startup and got shafted by a co-founder. Leave a Reply Click here to cancel reply.

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Cofounder Founder Preferred Stock Startup 40

Steve Blank

APRIL 20, 2009

And since there was no Venture Capital in the 1950′s/’60′s where was the money coming from? But in fact, most startups need to keep their burn rate low more [.] The Man Who Shot Liberty Valance I always had been curious about how Silicon Valley, a place I had lived and worked in, came to be.

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Silicon Valley RSS San Francisco Technical Review 270

dondodge.typepad.com

JANUARY 15, 2011

My next post will be about the importance of cash flow, keeping burn rates low, and how to avoid excessive equity dilution. Web startups, which I presume is the kind of main interest amongst your readers, can be started completely without VC's. Venture Capital investing is extremely risky. Many web 2.0

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Equity Employee Dilution Valuation 40

philipsmith.typepad.com

SEPTEMBER 24, 2011

While there have been times in the last dozen or so years, usually during times of venture capital excess, that cash to founders, early-stage executives and other key employees has matched regular market compensation (still with the upside of the equity), this is not true in the vast majority in the start-up game. Venture Capital.

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Silicon Valley Equity Technical Review Software Review 40

abovethecrowd.com

FEBRUARY 24, 2015

Companies are taking on huge burn rates to justify spending the capital they are raising in these enormous financings, putting their long-term viability in jeopardy. ” Finance Internet Uncategorized Venture Capital Web/Tech Investing IPO late-stage valuation' We are in a risk bubble.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

www.chubbybrain.com

SEPTEMBER 28, 2011

If you are an entrepreneur seeking funding, try our free Funding Recommendation Engine to identify a list of angels, venture capital and state grant programs that best match your business. Post-Mortem Title : Lessons from Kiko, web 2.0 Check out the Brain’s Guide to Angel Investin g and the Brain’s Guide to Venture Capital.

Software Review 79

Software Review Startup Technical Review Vesting 79

Professor VC

OCTOBER 11, 2010

I did a little searching around the web to try and find a truth vs. fiction comparison, but the closest I found was "The 10 Most Glaring Lies In The Social Network" on the Business Insider. link] We are developing a software technology that works on the web using cloud computing to build software 100X faster and reduce bugs and cut costs.

Social Network 28

Social Network Software Review Networking San Jose 28

www.paulgraham.com

APRIL 28, 2010

Venture Capital Funds VC firms are like seed firms in that theyre actual companies, butthey invest other peoples money, and much larger amounts of it.VC If you get a call from a VCfirm, go to their web site and check whether the person you talkedto is a partner. investments average several million dollars.

Technical Review 76

Technical Review Startup Software Review Vesting 76

Professor VC

OCTOBER 20, 2009

I laughed and said that our web site made this clear and we may have even put a brief posting to this effect on our twitter feed. Im also a strong believer that your track record and reputation are your most valuable assets in the venture community. The Most Important Venture Capital Statistic. Venture News.

Angel Investor 35

Angel Investor Due Diligence San Jose Silicon Valley 35

Both Sides of the Table

AUGUST 9, 2011

Companies raised too much money in 2005-08 and had high burn rates. 2010 was the year of the “super angel&# and 2011 has to date been the year of unbelievably highly priced B,C & D rounds of venture capital. Venture capital is an industry best served up from 7-year aged casks. tl;dr summary.

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Stock Technical Review Marketing Greece 305

Professor VC

JANUARY 19, 2012

Conceptually, this is very intriguing and goes against the current popularity of accelerators in start-up hubs (Silicon Valley, New York, Boston, Seattle, Boulder) that are filled with recent grads and drop outs looking to build the next web sensation. Venture capital Texas. The Most Important Venture Capital Statistic.

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Silicon Valley San Jose America Angel Investor 28