Startup Professionals Musings

OCTOBER 17, 2022

Based on the best evidence I can find, the genesis of this trend and the advantages come from several evolutionary changes in the startup investment industry, and some innovations driven by the recession several years ago and the recent pandemic: Venture capital funds are regaining momentum. Super angels sometimes drive up valuations.

Angel Investor 342

Angel Investor Venture Capital Silicon Valley Portfolio 342

Both Sides of the Table

FEBRUARY 20, 2019

just having a sparring partner with a vested interest in your success can be useful. Others may not have the experience you want and they fill up a seat that makes retaining founder control more difficult if you ultimately raise large rounds of venture capital in the future. What happens at the A-round of venture capital?

Venture Capital 236

Venture Capital Startup Angel Investor Silicon Valley 236

David Teten

DECEMBER 2, 2019

Nearly every major Silicon Valley venture-capital firm has now invested in a B Corp ; maybe you will be one of them! I’m now researching non-dilutive funding for Action Tank , a startup I’m gestating to “Make America Functional Again”. Non-Dilutive Financing: Everything You Need to Know. From 100% loss capital (e.g.

Technical Review 60

Technical Review SBIR Dilution Silicon Valley 60

thebarefootvc

MAY 8, 2012

If there is an opportunity to bring in a syndicate partner that will add exponential value, it would be foolish to not include them. This is also what I advise entrepreneurs when discussing dilution and valuation — think of the bigger picture and the end game of what you are looking to build — and who will help you get there.

Venture Capital 78

Venture Capital Syndicate Syndication Bandwidth 78

David Teten

JANUARY 19, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. Of the Inc. 5000 companies, only 6.5%

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Version One Ventures

SEPTEMBER 12, 2017

And so, we keep hearing how venture capital is about to be disrupted. Then, if you win the deal, you have major influence on the development of the start-up through negotiated governance mechanisms like board seats, information rights, anti-dilution rights, etc. We’ve all heard this song before.

Venture Capital 164

Venture Capital LP Dilution Limited Partner 164

Startup Professionals Musings

MARCH 12, 2023

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. The amounts from angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

View from Seed

DECEMBER 4, 2019

The trends described above in VC performance have an upstream effect on Limited Partners which is somewhat counter-intuitive. For example, a $10B endowment might be looking to have 10% ($1B) allocated to venture capital at any one time. Most LPs are trying to manage some targeted asset allocation.

LP 256

LP IRR Distribution Portfolio 256

Startup Professionals Musings

JANUARY 19, 2020

Based on the best evidence I can find, the genesis of this trend and the advantages come from several evolutionary changes in the startup investment industry, and some innovations driven by the recession several years ago: Venture capital funds are still regaining momentum. VCs are committed to servicing existing portfolios.

Angel Investor 314

Angel Investor Venture Capital Silicon Valley Startup 314

Both Sides of the Table

FEBRUARY 25, 2010

We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. But we weren’t optimizing for dilution – we were building a $1 billion+ company and we wanted the runway to succeed. It quickly became impossible to raise venture capital. Yes, this was stupid.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Up and Running

JULY 2, 2014

Picking the right attorney in your startup is as important as picking the right business partner. My business partner and I made many mistakes in our first tech startup, and so many of them were the result of choosing a lawyer who was a terrible fit. My business partner and I were elated. ownership and never dilute.

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Startup Professionals Musings

OCTOBER 7, 2022

On the other hand, venture capital organizations typically look for needs that exceed $2 million. Most professional investors will expect preferred stock, a board seat, rights to later rounds and perhaps anti-dilution protection. Every type of investor has comfortable ranges and limits. What business milestones have you met?

Preferred Stock 304

Preferred Stock Exit Strategy Equity Angel Investor 304

David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance.

Revenue 60

Revenue Technical Review Software Review Equity 60

Both Sides of the Table

APRIL 27, 2010

My company had raised venture capital in April 2001 but we were told that there may never be any more coming. But the firm that funded my first startup was loyal to me for having stuck around in what they knew to be pretty tough times and having suffered much dilution. So how did I come to work in the world of venture capital?

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Both Sides of the Table

SEPTEMBER 10, 2021

how on Earth could the venture capital market stand still? One of the most common questions I’m asked by people intrigued by but also scared by venture capital and technology markets is some variant of, “Aren’t technology markets way overvalued? What Does this Mean for a Venture Capital Firm?

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

Startup Professionals Musings

JUNE 13, 2020

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. The amounts from angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314

David Teten

SEPTEMBER 2, 2017

It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. These are many of the steps I went through when I joined HOF Capital. The modal disagreement inside a VC: Partner X invested in a company, which is now performing below expectations.

Private Equity 60

Private Equity Venture Capital Equity Partner 60

Agile VC

JULY 11, 2012

I happen to be fascinated by the history of the VC industry, and one of the things we discussed at a recent offsite are the common threads behind the rise and fall of great venture capital firms. Some disgruntled younger partners left to go start a new firm in 1965 called Greylock.

Silicon Valley 240

Silicon Valley Carried Interest Cofounder Boston 240

Startup Professionals Musings

JANUARY 4, 2020

On the other hand, venture capital organizations typically look for needs that exceed $2 million. Most professional investors will expect preferred stock, a board seat, rights to later rounds and perhaps anti-dilution protection. Every type of investor has comfortable ranges and limits. What business milestones have you met?

Startup 337

Startup Preferred Stock Exit Strategy Equity 337

Both Sides of the Table

APRIL 14, 2010

If you want to raise venture capital more easily the advice could be quite practical and counter-intuitive. Many companies that are raising B or C venture capital rounds right now raised their initial money in 2005-2008. Tags: Entrepreneur Advice Raising Venture Capital Start-up Advice Startup Advice.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Dividend 289

Both Sides of the Table

JULY 25, 2010

“Yes&# was given to me by one of my favorite angel investor / seed VC’s to work with – John Greathouse of Rincon Venture Partners and author of the blog InfoChachkie that you should check out because it is filled with great info from a guy who has been a very successful operator. So what are you waiting for?

Silicon Valley 293

Silicon Valley Technical Review Southern California Angel Investor 293

Both Sides of the Table

OCTOBER 12, 2014

People all across the value chain have taken notice including Limited Partners who are the people who invest in VC funds in the first place. The number of these groups that did “direct” investments in venture capital used to be relatively small. Aren’t they getting screwed? Sometimes entrepreneurs get screwed.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

Startup Professionals Musings

AUGUST 2, 2014

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. The amounts from Angels start as low as $25K, while minimum venture capital amounts usually start in the $2M range. In fact, the reality is quite the opposite.

Angel Investor 266

Angel Investor Entrepreneur Venture Capital IRR 266

Startup Professionals Musings

DECEMBER 27, 2014

Based on the best evidence I can find, the genesis of this trend and the advantages come from several evolutionary changes in the startup investment industry, and some innovations driven by the recent recession: Venture capital funds are still recovering from the recession. VCs are committed to servicing existing portfolios.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260

Both Sides of the Table

JUNE 17, 2017

Venture capital isn’t right for many business but if you do want to raise from a VC at some point you need to understand that often investors care more about growth than profits. Is the revenue dependent on a concentrated set of distribution partners or platforms that put future revenue at risk? What did they actually do?

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Both Sides of the Table

MARCH 11, 2011

Secondly, they had an owned & operated (O&O) website – Google.com – and Overture had shut down GoTo.com at the request of their very profitable and large distribution partners. Too many entrepreneurs focus on dilution. That gave Google a huge cost advantage.

Product 350

Product Tuvalu Dilution Incubator 350

Growthink Blog

DECEMBER 9, 2011

Josh is the CEO and Managing Partner of Detroit Venture Partners. Josh's post, entitled, "Five Disaster Moves to Botch Your Pitch" discusses 5 key blunders that he sees entrepreneurs making everyday, both when pitching him and pitching to partners and customers. Avoid superlatives (e.g.,

Venture Capital 102

Venture Capital Detroit Dilution Partner 102

Austin Startup

MARCH 26, 2019

Discounts too early can also have the adverse effect of diluting a brand when targeting a more affluent customer segment. product costs, packaging, forward shipping, fulfillment, merchant fees, discounts, resellers/partners, credit card errors, returns shipping and processing, etc. These add up very quickly.

Technical Review 49

Technical Review Software Review China Acquisition 49

The Next Web

SEPTEMBER 13, 2013

The venture capital landscape in Asia is varied and complex, as most of the active firms on the continent are concentrated in just a few areas. China’s top dogs include the likes of GGV Capital , Sequoia China , IDG , Qiming , and a handful of others. Focusing on the people you’re partnering with is crucial.

Asia 132

Asia Silicon Valley India Term Sheet 132

This is going to be BIG.

FEBRUARY 27, 2011

You get dilution sensitive and you start optimizing on price of a financing deal, versus finding the right partners or raising enough money to grow. The right partner goes to bat for you during the recruiting process—helps you identify and court the hires that you look back at as key to your success.

Dilution 104

Dilution Equity Hiring Partner 104

Startup Company Lawyer

MARCH 14, 2010

If you don’t, please educate yourself on this site, Venture Hacks and the term sheet series by Brad Feld/Jason Mendelson, among other places. If you really want to understand the nuances in venture capital financing documents, please review the NVCA model venture capital financing documents. . under $500K).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

David Teten

OCTOBER 1, 2015

I’ve seen a range of options for supporting entrepreneurs, which I can rank from least to most involvement in companies by investors: financier VCs, e.g., Correlation Ventures. portfolio operator VCs, e.g., Andreessen Horowitz, ff Venture Capital, First Round Capital, Google Ventures. mentor VCs, e.g., most VCs.

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60

rapidrollout.wordpress.com

JANUARY 15, 2011

Also, working with a consulting CTO will prepare you for finding and selecting a permanent technology partner. And finally, you may be able to avoid diluting your equity. Avoid delay by using a consulting CTO on a short-term basis while you are searching for a permanent technology partner. Like Be the first to like this post.

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

Startup Lessons Learned

JUNE 19, 2019

Andy Rachleff co-founded the venture capital firm Benchmark Capital in 1995. And how has that affected venture capital? It was 20 to 30, not 100, because of the dilution from the capital. I retired because Benchmark has an agreement that’s unusual in the venture industry.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159

Up and Running

MAY 27, 2014

You should think of choosing an investor the same way you consider choosing a business partner, because after you take their money, they become a partner in your business. And if you choose a partner based on money alone, you’re going to find yourself in trouble. (It Every time an investment is made, everyone dilutes!).

Angel Investor 119

Angel Investor Dilution Accredited Investor Due Diligence 119

Jason Ball

SEPTEMBER 28, 2010

Don’t worry about your “dilution&#. In February 2009, Series C funding raised $35 million from Benchmark Capital, Institutional Venture Partners, Spark Capital, Union Square Ventures, Charles River Ventures, and Digital Garage. Rowe Price, Spark Capital, Benchmark Capital.

Pre-Money Valuation 34

Pre-Money Valuation Valuation Dilution Venture Capital 34

The Equity Kicker

MAY 31, 2016

Cambridge Associates is a service provider to the Limited Partners that invest in venture capital funds that’s known for the quality of its research. Their advice to LPs is to catch these distributed returns by investing in emerging managers outside of traditional US venture heartlands.

Venture Capital 60

Venture Capital Early Stage Dilution Later Stage 60