Remove Cost Remove Institutional Investors Remove Revenue Remove Venture Capital
article thumbnail

How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

Private equity and venture capital investors are copying our sisters in the hedge fund and mutual fund world: we’re trying to automate more of our job. Sources like Crunchbase , Angel List , and Seed Invest even give this data away for free or very low cost. But we’re doing it slowly.

article thumbnail

Every Startup Goes Through Distinctive Funding Phases

Startup Professionals Musings

Some entrepreneurs start polling venture capitalists for that multi-million-dollar investment before they even have a business plan. It won’t work, it costs time and money, and hurts your credibility when you need them later. They are not trying to make money, but simply to recoup their costs over time.

Incubator 305
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Changing Structure of the VC Industry

Both Sides of the Table

There has been much discussion in the past few years of the changing structure of the venture capital industry. The rise of alternative sources of capital (crowd funding and the like). Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. The iPhone was released.

article thumbnail

How To Find Support Resources For Your Startup Stage

Startup Professionals Musings

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. It won’t work, it costs time and money, and hurts your credibility when you need them later. They are not trying to make money, but simply to recoup their costs over time.

Incubator 429
article thumbnail

It’s Morning in Venture Capital

Both Sides of the Table

Many observers of the venture capital industry have questioned whether its best days are behind it. Looking ahead at the next decade I am excited by what I believe will be viewed as one of the best and most rational investment periods for venture capital due to seven discrete factors: 1.

article thumbnail

Funding Alternatives Change As Your New Venture Grows

Startup Professionals Musings

Some entrepreneurs start polling venture capitalists for that multi-million dollar investment before they even have a business plan. It won’t work, it costs time and money, and hurts your credibility when you need them later. They are not trying to make money, but simply to recoup their costs over time.

Incubator 236
article thumbnail

Should you raise traditional VC or Revenue-Based Investing VC?

David Teten

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Lower processing cost.

Revenue 60