Startup Professionals Musings

MARCH 22, 2020

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. Loans are a safer option than equity. Don’t forget a couple of additional potential negative realities.

Management 308

Management Cram Down Angel Investor Equity 308

OnlyOnce

JULY 30, 2020

If you’re a founder entrepreneur who has led your company for several years, the odds are you have a significant amount of emotional investment in your company, too. For many entrepreneurs, the company is a deeply embedded part of their identities as a human – right or wrong, for better or for worse.

Cap Table 48

Cap Table Institutional Investors Startup Early Stage 48

The Next Web

SEPTEMBER 13, 2013

Asia has far fewer VC firms and institutional investors, each of which invests a far smaller amount of capital. Many Asian entrepreneurs tell me that they want to raise funds from Silicon Valley firms because they perceive the valuations to be higher. Golden Gate Ventures , Jungle Ventures , etc.), Thus, VCs have the upper hand.

Asia 132

Asia Silicon Valley India Term Sheet 132

Both Sides of the Table

JULY 23, 2014

Just 3 years ago there was talk of institutional investors “not being able to write small enough checks.” Because this is all VCs do and if we intend to work with all of our fellow VCs and entrepreneurs when the rain ends and the sun shines again our reputations matter greatly.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Rob Go

SEPTEMBER 4, 2018

It occurred to me that although we mentioned our new thematic approach when we raised our last fund in 2017, we haven’t really shared a broader manifesto about how we are approaching the early stage market. It’s been an interesting several years in the early stage venture eco-system, and the sands have shifted considerably.

North America 36

North America Seed Stage Early Stage Lead Investor 36

David Teten

SEPTEMBER 23, 2017

In venture capital in particular, early-stage companies are often operating in frontier industries, where the rules are unpredictable and conventional analytic frameworks may be misleading. The Pocket Negotiator is very early-stage attempt to aid in the negotiating process itself. . 3) Originate investments.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Startup Professionals Musings

OCTOBER 10, 2014

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. Loans are a safer option than equity. Don’t forget a couple of additional potential negative realities.

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

MARCH 9, 2018

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. Loans are a safer option than equity. Don’t forget a couple of additional potential negative realities.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Berkonomics

AUGUST 3, 2023

Money from these sources is relatively easy to come by, and most often comes with no strings as to oversight by a formal board composed of these investors and management. And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Startup Professionals Musings

APRIL 17, 2013

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. Loans are easier than equity. Don’t forget a couple of additional potential negative realities.

Cram Down 230

Cram Down Angel Investor Equity Dividend 230

David Teten

JULY 3, 2013

what you need to know as an early stage investor: best practices in origination, evaluation, structuring and adding value. HBS Alumni Angels of Greater New York is comprised of Harvard alumni who invest in early-stage private companies on an individual basis and is the 3rd largest angel group in New York.

Angel Investor 114

Angel Investor New York Accredited Investor New York City 114

David Teten

JULY 3, 2013

what you need to know as an early stage investor: best practices in origination, evaluation, structuring and adding value. HBS Alumni Angels of Greater New York is comprised of Harvard alumni who invest in early-stage private companies on an individual basis and is the 3rd largest angel group in New York.

Angel Investor 114

Angel Investor New York Accredited Investor New York City 114

Both Sides of the Table

SEPTEMBER 25, 2011

Yesterday I saw a Tweet from Chris Sacca fly by that prompted me to want to write a blog post helping entrepreneurs understand why they should push back against VCs asking for “super pro-rata” rights. Institutional investors will always insist on pro-rata rights. A primer on “pro-rata” rights.

Entrepreneur 310

Entrepreneur Dilution Finance Silicon Valley 310

David Teten

APRIL 7, 2017

This is a generalizable principle: you get higher returns where other investors are not. Because of that insight, we co-founded the Venture Capital Access Program , focused on helping women and minority entrepreneurs raise capital from HBS Alumni Angels. Kashmir, Board Member and Screening Co-Chair of HBSAANY.

New York 60

New York Africa Cofounder Egypt 60

Startup Professionals Musings

NOVEMBER 11, 2015

In their passion to succeed, too many entrepreneurs treat friends and family investments as “low-hanging” fruit, only to find out later, after a stumble, that the pain of lost relationships is greater than the loss of their beloved startup. Loans are a safer option than equity. Don’t forget a couple of additional potential negative realities.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

Haystack

OCTOBER 2, 2019

Those of us in the early-stage tech ecosystem by now well know that saying “there are a LOT of seed and new startups” is a gross understatement. all together) combined with the culture of “demo days,” in-person gatherings where angels and professional investors collide with entrepreneurs.

Deal Flow 106

Deal Flow Cap Table Early Stage Institutional Investors 106

David Teten

SEPTEMBER 5, 2014

I’ve also presented at a range of industry conferences on how institutional investors can use professional networks for research , origination , market research , and value creation. David Teten: What is GLG Share, and why did you launch it?

New York 114

New York Technical Review Networking Advisory Board 114

Rob Go

OCTOBER 14, 2012

Although the resumes of these founders differ quite a bit, for the most part, we back entrepreneurs with deeply authentic founding stories and a strong focus on product. Early Progress: Performance is a difficult thing to measure as a seed stage fund given the time horizons and the fickleness of private company valuations.

New Hampshire 50

New Hampshire Croatia Omaha Portfolio 50

ReadWriteStart

JANUARY 5, 2020

What Investors Want to See Before Investing. Pavel told me that although there’s a category of investors who are willing to fund ideas in early stages, the truth is that in most cases is that funding will include your friends and family at the beginning. “This is a very good indication of where you are.”

Founder 80

Founder Institutional Investors Silicon Valley Cofounder 80

Austin Startup

JANUARY 2, 2021

He was the first institutional investor in Facebook and also an early-stage investor in groundbreaking companies like Etsy, Spotify, C3.AI, Amy Sun is an entrepreneur who is connected in Silicon Valley and could have gone anywhere? Why Jim Breyer? Jim Breyer has spent his career on the cutting edge.

Silicon Valley 100

Silicon Valley Austin Texas Raleigh 100

Both Sides of the Table

MAY 30, 2018

One of the hardest things about the fund-raising process for entrepreneurs is that you’re trying to raise money from people who have “asymmetric information.” As an entrepreneur it can feel as intimidating as going to buy a car where the dealer knows the price of every make & model of a car and you’re guessing at how much to pay.

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

Both Sides of the Table

MARCH 6, 2015

*. If you are a 20-something tech entrepreneur you could be forgiven for thinking that seed-stage investors, Angellist Syndicates and widely available angel money always existed. And people like Jeff (and his peers) smooth the introduction to and transition process to A-round investors.

Seed Stage 150

Seed Stage Silicon Valley Syndicate Syndication 150

K9 Ventures

MAY 14, 2011

In my view the terminology being used for early stage investors by the press and the media is not as clear as it should be. I’ve talked about this on several occasions when I’ve been at conference and on panels, but I figured it would make sense to do a post explaining my taxonomy of the early-stage investing world.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

David Teten

AUGUST 21, 2019

These entrepreneurs want to maintain two major options: 1) To raise VC later (or not), and/or. 2) To sell their businesses when they want – early, mid term, or never.” . When you raise early stage VC, you can’t sell early because the VCs won’t agree to it. Works for early-stage companies.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Both Sides of the Table

OCTOBER 1, 2009

This post highlights some of the reasons why the market is moving again and what entrepreneurs should do about this. There’s no doubt (at least anecdotally) that the pace of VC investments in early-stage technology companies has picked up in the past few months. This is one book-end of the cycle.

IPO 255

IPO Investment Bankers Venture Capital Marketing 255

Hunter Walker

SEPTEMBER 22, 2014

These “ piggy rounds ” usually left little room for other institutional investors, in contrast to traditional seed rounds which may include several funds collaborating. In May, I speculated several large VCs were changing their strategies after seeing more large seed checks from funds that usually enter at A or B rounds.

Later Stage 95

Later Stage Valuation Semantic Institutional Investors 95

Berkonomics

JUNE 8, 2017

composed of these investors and management. However, most often, these funds are solicited by a well-meaning entrepreneur from investors who are not qualified as accredited investors under the law (currently requiring a proved income of $200,000 a year or $1 million in net worth for an individual investor).

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Both Sides of the Table

MAY 23, 2010

There is a primary reason that inside investors give companies convertible debt rather than just giving you the money as equity. VC’s money comes from mostly institutional investors called LPs (limited partners). So my view is that VCs and entrepreneurs need to make tougher choices. And it adds up.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Growthink Blog

MAY 10, 2012

When seeking equity investments, the source of capital is, for the most part, tied to the stage of capital being raised. You see, equity capital is raised in stages or rounds. The five main stages include the following: 1. Early Stage Investment (Series A & B) 4. Pre-Seed Funding 2. Seed Funding 3.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Genuine VC

MARCH 25, 2010

I had coffee with an entrepreneur friend the other day who is in the early stages of putting a company together, and he recounted how his informal conversations with a venture capitalist had quickly escalated into a full partner pitch in just a few weeks.

Early Stage 123

Early Stage Venture Capital Term Sheet Conversion 123

Genuine VC

MARCH 25, 2010

I had coffee with an entrepreneur friend the other day who is in the early stages of putting a company together, and he recounted how his informal conversations with a venture capitalist had quickly escalated into a full partner pitch in just a few weeks.

Early Stage 121

Early Stage Venture Capital Term Sheet Conversion 121

K9 Ventures

MARCH 23, 2011

Before the era of capped notes, entrepreneurs preferred to do notes because the note essentially deferred the valuation of the company. In the early stages of the company the Board of Directors need not be about “control”, but it does need to be about learning and about discipline. Where are you going?

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Hunter Walker

MAY 18, 2015

Over the first two funds we’ve ended up with just that – a group of LPs representing college endowments, foundations and fund of funds who are committed to us and the early stage venture segment. . An investor needs much more than patient capital and an appetite for illiquidity. in nonprofit grants to that extent.

LP 48

LP Portfolio Early Stage Institutional Investors 48

David Teten

DECEMBER 3, 2019

Small investment firms often have interns and entrepreneurs in residence passing through, each of which is a security risk. Excel and Google simply aren’t going to cut it if you expect to build a high quality institutional investor base.”. See Bessemer Venture Partners’ A comprehensive guide to security for startups. 2) Market

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Hunter Walker

APRIL 27, 2014

Here’s what we covered – it’s a bit inside baseball but just as with the funding post linked above, we think exposing the mechanics of venture can help entrepreneurs and future investors (plus, we learn a lot from any resulting discussions). We try to give real, honest feedback to anyone we meet with.

LP 97

LP Cofounder Term Sheet Valuation 97

Rob Go

JANUARY 7, 2013

Amidst the mass of new initiatives, new firms, new strategies, etc that constantly pop up in the early stage investing landscape, it’s helpful to have a clear articulation of what VC’s are focused on and how they see the world. Tom Brady Entrepreneurs: 8. Introduced by other entrepreneurs: 6.

Portfolio 49

Portfolio Seed Stage Cofounder B2B 49

Both Sides of the Table

MAY 23, 2012

The movie, “The Social Network” might have had more of an impact on creating future entrepreneurs than any other event of the past 5 years. IPO markets had burned an entire cycle of retail stock investors and many institutional investors to boot. Thank you, Aaron Sorkin!

Venture Capital 347

Venture Capital Technical Review LP Mobile 347