article thumbnail

5 Steps To Finding The Best Investor For Your Startup

Startup Professionals Musings

Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. Reverse due diligence on the investor is a comparable process whereby the entrepreneur seeks to validate the track record, operating style, and motivation of every potential partner.

article thumbnail

5 Keys To Vetting Investors Before You Accept Funding

Startup Professionals Musings

Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. Reverse due diligence on the investor is a comparable process whereby the entrepreneur seeks to validate the track record, operating style, and motivation of every potential partner.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Size Up Your Investors Before Accepting Their Money

Startup Professionals Musings

Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. Reverse due diligence on the investor is a comparable process whereby the entrepreneur seeks to validate the track record, operating style, and motivation of every potential partner.

article thumbnail

5 Ways To Check Your Investor Intent Before Signing

Startup Professionals Musings

Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. Reverse due diligence on the investor is a comparable process whereby the entrepreneur seeks to validate the track record, operating style, and motivation of every potential partner.

article thumbnail

Why So Many Small Emerging Managers Don’t Use Placement Agents

David Teten

Private equity/venture capital managers have a much longer duration than most any other fund type. In 2018, the 8,000 active private equity funds globally had a 15 to 16 percent annual performance differential between top and bottom quartile funds. Fundraising hacks for VC and private equity funds. No historical relationship.

article thumbnail

How Venture Capitalists and Government Can Promote Entrepreneurship

David Teten

This is effectively a sequel to my study of best practices in deal origination , published last year in the Journal of Private Equity , Harvard Business Review , Institutional Investor , and Business Insider. We typically do this by partnering with graduate student teams. I’m unclear whether this legal arbitrage is possible.

article thumbnail

Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

Not surprisingly, the list above also is ranked from least to most equity stake in an investment for the investor, relative to the cash they invest. How would one set up such a startup to eventually raise capital from outside VCs, who will be wary of ‘dead equity’ (i.e., equity that belongs to departed cofounders)? The cliffs?