Berkonomics

AUGUST 3, 2023

The subject of raising money is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. 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

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

David Teten

SEPTEMBER 5, 2014

I was excited to see that GLG (formerly Gerson Lehrman Group), the industry leader, is now offering a professional network service geared to the needs of the startup community: GLG Share. Professional expert networks allow you to efficiently convert your financial capital into relationship capital.

New York 114

New York Technical Review Networking Advisory Board 114

Gust

SEPTEMBER 27, 2014

To begin with, it is important to understand some basic facts about the world of entrepreneurial finance: There are many more entrepreneurs than there are investors, with the result that only one company out of every 400 that seeks venture funding actually receives it.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Up and Running

SEPTEMBER 26, 2016

For startups and high-growth businesses, as you scale and encounter new milestones and obstacles, you will be faced with the question of how to finance and plan for that growth. There are a wide range of options for finance, but one of the more common choices is venture debt. Who provides venture debt?

Covenant 60

Covenant Institutional Investors Balance Sheet Warrant 60

David Teten

JULY 3, 2013

I hope you can join me for this program, cosponsored by Empire Angels ; HBS Alumni Angels of Greater New York ; and the The Young Venture Capital Society. what you need to know as an early stage investor: best practices in origination, evaluation, structuring and adding value. So You Want to Be an Angel?

Angel Investor 114

Angel Investor New York Accredited Investor New York City 114

David Teten

JULY 3, 2013

Co-Sponsored by Empire Angels, HBS Alumni Angels of Greater New York, and Young Venture Capital Society. Must be an individual Accredited Investor who plans to make a private investment in 2013. Members include representatives of several VCs, family offices and other institutional investors.

Angel Investor 114

Angel Investor New York Accredited Investor New York City 114

David Teten

FEBRUARY 1, 2017

Rise New York (good mailing list) – includes the Barclays Accelerator , in partnership with Techstars , and a coworking space for fintech startups. Work-Bench (enterprise startups, sometimes fintech applicable). Most significant VCs in New York , including ff Venture Capital , are active investors in fintech.

New York 60

New York Community DC Boston 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. In the last couple of years the ratio of money into startups to funds raised by VCs was 2.5 In the last couple of years the ratio of money into startups to funds raised by VCs was 2.5

Marketing 60

Marketing Institutional Investors Venture Capital Later Stage 60

Berkonomics

JUNE 8, 2017

The subject of raising money is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup. For you who fit that description, nice work.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

David Teten

AUGUST 21, 2019

Most founders who are raising capital look first to traditional equity VCs. 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. RBI capital is normally treated as debt.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

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

A Smart Bear: Startups and Marketing for Geeks

FEBRUARY 7, 2012

Indeed, running in the opposite direction is an easier and less risky path, because customers are clear and under-served, perfect for a little startup to service. What’s the secret to manufacturing this combination of foresight, timing, and financing? For the institutional investor, it’s a set of bets.

Institutional Investors 240

Institutional Investors India China Viral 240

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

Growthink Blog

MAY 10, 2012

Mezzanine Financing Most companies that raise equity capital and are eventually acquired or go public receive multiple rounds of financing first. No right or wrong answer here, but if this is your vision then it's important to consider when negotiating deal terms on earlier stage financing rounds. Seed Funding 3.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Startup Company Lawyer

MARCH 12, 2009

Almost all technology startup companies that I work with are C corps. Any company that raises venture financing will need to be a C corp in order to issue preferred stock. In any event, the S corp election can be easily revoked at the time of a financing. citizen/resident stockholders. Governance/Structure.

LLC 61

LLC Stock Options Preferred Stock Stock 61

K9 Ventures

MAY 14, 2011

The companies go through a 3-6 month long startup bootcamp and then typically try to raise angel/seed funding. Angels : Angels are individual investors, who are investing their own capital and doing so on a part-time basis. Some do it for their own ego, to be able to say “I’m an investor in X, Y or Z” at cocktail parties.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

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. Apply for the Startup Showcase here: [link].

New York 60

New York Africa Cofounder Egypt 60

Both Sides of the Table

OCTOBER 1, 2009

So what is driving the new energy in the remaining venture capital firms when we kept hearing how much the whole industry was “against the ropes?&# … 1. The Market rebound – Let’s face it, just as investor sentiment is unnecessary shaken when the markets dive it also becomes overly optimistic when markets bounce.

IPO 255

IPO Investment Bankers Venture Capital Marketing 255

Rob Go

SEPTEMBER 2, 2014

When we started NextView, there were relatively few seed focused venture capital funds in the country, even fewer on the east coast, and almost none in the Boston area. Non-institutional Leads. The institutions walked, but the round got done. New Competition. Today, the landscape is very different. Getting Crammed Down.

Cram Down 66

Cram Down Institutional Investors Dilution Seed Stage 66

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . See Bessemer Venture Partners’ A comprehensive guide to security for startups. (To see the video above, please click the image, and then click on the Play button.). 2) Market .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Hunter Walker

SEPTEMBER 29, 2022

Starting a venture capital blog post with 1970s country music lyrics is pretty uncommon, but so is writing about when and why an investor might choose to sell equity before the company exits. Below I’ll share some of the principles we use at Homebrew , knowing that there’s not really a single ‘right’ answer for a fund manager.

Venture Capital 122

Venture Capital Cap Table LP Equity 122

BeyondVC

NOVEMBER 17, 2016

This is awesome not just for us but also for enterprise startups in NYC. To have institutional investors the quality of Knollwood and Top Tier Capital seeking an allocation to seed and NYC enterprise shows the tremendous progress we have all made. boldstart iii announced portfolio from Ed Sim. Sincerely, Team Boldstart.

Cap Table 60

Cap Table Cofounder Dividend Institutional Investors 60

Rob Go

JANUARY 7, 2013

This means that we like working as a catalyst for a round, negotiate terms, bring in other investors, and sit on boards. The fact that each member of our team has worked at larger, institutional venture capital firms is an important asset. We invest in about 10 companies each year. This isn’t a quota. Consumer: 9.

Portfolio 49

Portfolio Seed Stage Cofounder B2B 49

VC Cafe

JUNE 9, 2010

T he birth of the Israeli venture capital industry was supported by government programs like Yozma. The proposal will enable investors in startups to receive tax write-offs on investments for high-tech companies who spend at least 70% of their salaries in Israel. The Israeli High-Tech Support Plan.

Technical Review 88

Technical Review Government Technology 88

YoungUpstarts

NOVEMBER 17, 2016

How much capital does the company need to achieve breakeven and what if any is your exit strategy? There are inherent challenges in raising smaller amounts from many shareholders rather than leveraging larger checks from fewer experienced, accredited investors. What kind of business is being launched? Another way is with endorsement.

Equity 100

Equity United Kingdom Cap Table Oklahoma 100

David Teten

JANUARY 8, 2013

PEHub just posted this guest article: Can professional investors use social media? Historically, institutional investors kept their investing strategy and their activities very discreet. Investors can tap this network for executive talent, followon financings, and eventually an exit.

Private Equity 114

Private Equity Social Media Equity Media 114

David Teten

NOVEMBER 15, 2013

Since I became an institutional investor, my #1 learning is: this is a highly unusual and somewhat baffling industry. Disruptable Pattern #5: Institutional investors are eager to cut larger checks rather than smaller ones. I think there are many more opportunities to disrupt the space. Photo credit: JD Hancock.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Gust

OCTOBER 26, 2011

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. The Note Purchase Agreement and Convertible Promissory Note are essential documents for any convertible note financing. Next section: Amendment.

Finance 79

Finance Term Sheet Covenant Accredited Investor 79

David Teten

MARCH 5, 2021

What can we learn from the best 40 venture capital investments of all time? This would be easy to detect: among their portfolio companies, do startups with female founders outperform those without? First Round Capital found that among its portfolio companies, startups with female founders outperformed those without by 63%.” .

Cofounder 78

Cofounder Founder Technical Cofounder Technical Review 78

VC Cafe

MARCH 20, 2011

Below is a round up of noteworthy Israeli startup headlines. Tip VC Cafe and get your startup on the map by filling the form: [link]. Venture capital Rounds. California-based Gigya , an Israeli startup developing social tools for websites, quietly raises $6 million according to a regulatory filing.

Venture Capital 87

Venture Capital Startup Denmark 87

Steve Blank

OCTOBER 26, 2009

Yet one of the most remarkable things about the boom in microwave and silicon startups occurring in the 1950’s and 60’s was that it was done without venture capital. These technology startups had no risk capital – just customers/purchase orders from government/military/intelligence agencies. There was none.

Silicon Valley 163

Silicon Valley Securities and Exchange Commission Venture Capital RSS 163

Rob Go

NOVEMBER 30, 2012

The venture capital market continues to be in transition, and a lot of changes have occurred in the early stages of the market. 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. See that original post here.

Seed Stage 55

Seed Stage Pre-Money Valuation Dilution Early Stage 55

Ben's Blog

MAY 24, 2021

billion multi-stage venture capital firm focused on IT-related investments… I also serve on various investment committees, including for the St. Jude Children’s Cancer Hospital and the Stanford Medical Center, and teach entrepreneurship and venture capital at the Stanford Graduate School of Business.

SEC 36

SEC Accredited Investor IPO Technical Review 36

Up and Running

DECEMBER 9, 2014

Bates: Good morning and welcome to our CEO panel, “How to Fine-Tune Your Small Business Finances From Funding to Growth” which I think is the direction that we would all like to be going. I’m here with some really phenomenal CEOs who are going to talk to us today about small business finances from funding to growth.

Small Business 95

Small Business Finance Forecast Metrics 95

Austin Startup

APRIL 1, 2017

out of state VCs Don’t rush a term sheet In assessing financing terms and interacting with their lead investors, most founders instinctively focus on two core things: economics and control. But institutional investors have a job to do, and it’s not to be your BFF. Do not take that selection lightly.

Term Sheet 48

Term Sheet Institutional Investors Technical Review Lead Investor 48

Steve Blank

AUGUST 19, 2013

But what if we could increase productivity and stave the capital flight by helping Life Sciences startups build their companies more efficiently? 75% or more of all the funds needed by a Life Science startup will be spent on clinical trials and regulatory approval. Venture Capital Issues. WTF is going on?

Venture Capital 302

Venture Capital Startup Lean Philadelphia 302