Not just because we can command a 3-4x step up in valuation if we find product/market fit pre [.] It was amazing to see the two founders, Fred Durham and Maheesh Jain, build a $100 million company from coffee cups and T-shirts. Here’s how they did it. Fail Fast and Cheap Fred and Maheesh had started 9 previous companies in 6 years.  Thanks! MORE >>

Note that I merged the two Southern California regions (LA/Orange County and San Diego) into one.  Southern California*. Southern California = LA County, Orange Cty and San Diego Cty. In 2010, MoneyTree© reports that only 138 seed stage VC deals were done outside of California, New England, NYC Metro and the Pacific Northwest. MORE >>

2) Issuing of massive option grant to management along with new financing at a below-market valuation. Company is doing well and is offered a Series B at a significantly higher valuation. There are also some legal protections all minority investors are granted under, say, Delaware or California law. Here are a few examples. MORE >>

There is not much you can do about that, except get the spouse so sign something beforehand or provide for repurchase by the company and the other stockholders pursuant to some fair valuation.  You will have an objective third party valuation.  However, these valuations sometimes seem low.  So let’s take the tour. MORE >>

Boston, New York City, Seattle and Southern California spawn many exciting startups…but do not exceed the Valley in any measure of entrepreneurial achievement.  Silicon Valley is a very special place – the nucleus of high-growth, high technology entrepreneurship in the US, indeed, in the world.  To investors :  Stay where you are.  MORE >>