Both Sides of the Table

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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

It’s true that some later-stage private equity firms like to fund “roll ups” (a company that acquires many related companies in it sector), but this is seldom the domain of VCs. Every VC wants to fund a deal that seems to have too much demand. Having too little demand leads to bankruptcy.

Burn Rate 247
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2010 VC Funding Outlook for Startups – Prepare for Winter (Part 3/3)

Both Sides of the Table

It is also a result of pent-up demand. We spent our future since the equity was artificial. My advice : if you’re raising a $750,000 round and you have demand for $1.2 .&# This is a direct result of innovation around the iPhone / mobile computing, Facebook / Social Networks and Twitter (as distinct from Social Networks).

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Fight When it’s Time to Fight. Be Gracious When It’s Time to Give In.

Both Sides of the Table

Let’s say a senior member of your team demanded a pay raise (cash or equity) and you didn’t like the way they approached you. There’s nothing worse than giving into this demand and having them be pissed off about it. I’d rather choose to be zen and maintain my public reputation.

Demand 340
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Be Careful Not to Lose Twice

Both Sides of the Table

Let’s say a senior member of your team demanded a pay increase (cash or equity) and you didn’t like the way he or she approached you. If you compromise but then display “sour grapes” to the other party then you not only didn’t get the result you wanted but you’ve also created ill will with other people and you lose twice.

Equity 199
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This Week in Venture Capital – Episode 4

Both Sides of the Table

Summit is a hugely respected firm in Silicon Valley and a long-term “institution&# but they’re better known as more of a “private equity&# investor meaning that they do later stage investments in much larger companies that are profitable. Over demand led the SV Angel team to double the size of the fund to $20 million.

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The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

This time by the efforts of Adeo Ressi to introduce a new kind of structure called “ convertible equity.” My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly.

Ratchet 354
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How Many Investors Should You Talk to in a VC Fund Raise? And How Do You Prioritize?

Both Sides of the Table

People who believe the former believe that you should see the market demand before too many people know you’re “in market.” Summary Fund-raising is a sales & marketing process in which the buyer is a VC and the product is equity in your company. I think there’s some truth in this.