Remove Cost Remove Cram Down Remove Management Remove Technology
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5 Ways to Make Your Startup a Choice Investment

Startup Professionals Musings

I like the work just published by Bob Rice in “ The Alternative Answer ,” which does a great job of summarizing the investment universe, starting with the “conventional” stocks, bonds, and real estate, but moving on through more esoteric alternatives, including hedge funds, private equity, real assets, managed futures, and finally venture funding.

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Want to Know How First Round Capital was Started?

Both Sides of the Table

In the early 80’s he left academia to work on venture capital investing with Jim Simons, Renaissance Technologies. They chose the name First Round Capital because they thought capital would be deployed most efficiently at smaller seed stage rounds considering the cost to build an internet business had come down drastically.

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Lean Startups aren't Cheap Startups

Steve Blank

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.) Sales people cost money, and when they’re not bringing in revenue, their wandering in the woods is time consuming, cash-draining and demoralizing.

Lean 259
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Why Seed Funds Have Scaled

Haystack

Much has been written about the fact that traditional seed stage funds have grown in size and dollars under management. As valuations have gone up early, the cost of ownership has also risen, and in an early-stage fund where the loss ratio is likely to be much higher, high ownership has been increasingly important to these funds.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

Through connections, or through a chance meeting at a networking or social event, an angel investor hears the entrepreneur's story, likes them and their technology, and on the spot, writes a check to provide the company with its first outside financing. There are a lot of dark, hard days. For most companies, it is simply a non-starter.