Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). 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

Both Sides of the Table

OCTOBER 12, 2014

Prorata investments rights given investors the right to invest in your future fund-raising rounds and maintain their ownership % in your company as your company grows and raises more capital. New investors sometimes want early investors to put in money to “prove” they have confidence in the new price.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

Ben's Blog

MAY 24, 2021

Editor’s Note: This testimony was delivered by a16z managing partner Scott Kupor to the U.S. By way of background, I am the Managing Partner for Andreessen Horowitz, a $16.5 The SEC’s Director of the Division of Corporate Finance recently provided some guidance raising questions about the extent of PSLRA coverage.

SEC 36

SEC Accredited Investor IPO Technical Review 36

David Teten

NOVEMBER 15, 2013

Since I became an institutional investor, my #1 learning is: this is a highly unusual and somewhat baffling industry. Asset management also shows the traditional earmarks of an industry ripe for disruption — most obviously, unhappy customers and extremely profitable incumbents.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

The Startup Magazine

FEBRUARY 6, 2020

trillion, it is by far the largest of its sort in the world and financed projects that in other settings may not have passed investment criteria screens. [3]. Second, the Board can usually avoid a public vote or referendum by leasing to a new partner, something politicians fear. Some attribute the lag to the uniqueness of the U.S.

Private Equity 129

Private Equity New York City Chicago Investment Bankers 129

VC Cafe

FEBRUARY 6, 2011

Jussi Laakkonen , CEO & founder of Applifie, summarized it well: We recently raised our seed round at Applifier and it was led by a silicon valley seed fund MHS Capital, whose general partner is Mark Sugarman. Use your network #2: approach a corporate financier who advised a company we recently partnered. Simplify, practice.

Silicon Valley 104

Silicon Valley Startup Seed Stage Delaware 104

David Teten

FEBRUARY 1, 2017

I recently met with a friend who’s a senior executive at a large investment management organization. Aquiline Capital Partners. Motive Partners. NYCA Partners. Pivot Investment Partners. QED Investors. SenaHill Partners. Point72 Asset Management. FT Partners Fintech Research. Broadhaven.

New York 60

New York Community DC Boston 60

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). composed of these investors and management. It is most often a win-win for both you and the strategic partner.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Both Sides of the Table

MAY 23, 2010

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. a loan) that is later converted to equity at the time of the next financing. It starts as a debt instrument (e.g.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Startup Company Lawyer

MARCH 12, 2009

Any company that raises venture financing will need to be a C corp in order to issue preferred stock. If founders want the benefit of flow through tax treatment with respect to losses prior to an outside financing, an S corp election may make sense as long as there are no entity or non-U.S. citizen/resident stockholders.

LLC 61

LLC Stock Options Preferred Stock Stock 61

VC Adventure

MAY 21, 2014

Syndicate Dynamics: To sign up for FG Angels, an investor must be approved by Foundry Group and agree to their terms, which include a carry. The carry is a percentage of the returns on the investment that the investor will give to Foundry Group for managing the syndicate and investments (note that AngelList itself takes a carry as well).

Syndicate 93

Syndicate Syndication Technical Review Due Diligence 93

David Teten

JANUARY 8, 2013

Historically, institutional investors kept their investing strategy and their activities very discreet. According to Jeff Bussgang, General Partner at Flybridge Capital Partners, about 10-15% of the 1,000 active venture capitalists in the U.S. Social media is valuable for more than just origination.

Private Equity 114

Private Equity Social Media Equity Media 114

David Teten

APRIL 7, 2017

This is the debut of an annual series of summits focused on sovereign wealth funds, institutional investors, family offices, venture capitalists, and entrepreneurs interested in technology-driven entrepreneurship and with ties to the Middle East and North Africa (MENA) region. The summit is hosted by: – ABANA – the preeminent U.S.

New York 60

New York Africa Cofounder Egypt 60

David Teten

AUGUST 21, 2019

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. A company with that mindset is dramatically less risky, because it’s not dependent on the financing markets for continued viability.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

The Equity Kicker

FEBRUARY 9, 2016

There’s been a lot of talk recently about what will happen to startup financing in 2016, including here on this blog. A lot of them are focused on Series A investing and favour the ecommerce and marketplace sectors that Forward Partners focuses on.

Marketing 60

Marketing Institutional Investors Venture Capital Later Stage 60

K9 Ventures

MAY 14, 2011

This in theory is very similar to the behavior of institutional investors, however, there is one big difference. Institutional investors make sizable investments in a company, so that when they do get a big hit that can make the whole fund. They have 4-10 partners who are investing on their behalf. Institutional.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

Reid Hoffman

OCTOBER 5, 2020

One of the hottest topics in the technology and finance world right now is an old idea that has suddenly found new life, the special purpose acquisition company or “SPAC.” Most IPOs are managed by a handful of investment banks who run a roadshow to sell stock to risk-averse institutional investors.

Venture Capital 28

Venture Capital IPO Cofounder Institutional Investors 28

VC Adventure

MAY 21, 2014

Syndicate Dynamics: To sign up for FG Angels, an investor must be approved by Foundry Group and agree to their terms, which include a carry. The carry is a percentage of the returns on the investment that the investor will give to Foundry Group for managing the syndicate and investments (note that AngelList itself takes a carry as well).

Syndicate 48

Syndicate Syndication Technical Review Due Diligence 48

Both Sides of the Table

OCTOBER 1, 2009

Sentiment is strong in personal portfolios and up commensurately with VC’s expectations that their last fund will now be worth something (and along with that increase the partners’ personal wealth). I can tell you first hand than bankers are out making road shows to gin up interest in VCs and institutional investors.

IPO 255

IPO Investment Bankers Venture Capital Marketing 255

ithacaVC

FEBRUARY 23, 2012

Luckily, I am not in charge of the internal finance function at our fund. Yes, large institutional investors use the unrealized values and need them for reporting purposes. Some VC firms use the art of Level 3 inputs to mark up their valuations, which has a tendency to make limited partners happy.

Valuation 49

Valuation Institutional Investors Marketing Down Round 49

Steve Blank

OCTOBER 26, 2009

Whitney Company by writing a personal check for $5M and hiring Benno Schmidt as the first partner (Schmidt turned Whitney’s description of “private adventure capital&# into the term “venture capital”). Several wealthy families in the U.S. set up companies to do just that – find and formalize investments in new and emerging industries.

Silicon Valley 159

Silicon Valley Securities and Exchange Commission Venture Capital RSS 159

Rob Go

NOVEMBER 30, 2012

Given this definition, we continue to see dedicated seed funds providing strong benefits for founders, including: Minimal signaling risk at the next round of financing. Partner Time. Frist, many of the funds were extremely prolific in their early years, and didn’t have a well established model for managing their time and capacity.

Seed Stage 55

Seed Stage Pre-Money Valuation Dilution Early Stage 55