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2010 VC Funding Outlook for Startups – Prepare for Winter (Part 3/3)

Both Sides of the Table

So we loaded up on flat screen TVs, multiple generations of iPods and trips to Hawaii. Bad stock markets mean less IPO’s and lower prices for M&A. Tags: Pitching VCs Start-up Advice VC Industry startup technology vc venture capital. We spent our future since the equity was artificial. So why the ’09 bounce?

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The Greenshoe = how to repay all those that helped along the way.

Scalable Startup

If the startup actually makes it to an IPO, there is actually something you can do. The Greenshoe is an over-allotment of stock options, up to 15% of the total offering at time of IPO. Since they’re options, acquirers only exercise if the stock goes up, and have no downside risk or capital outlay.

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The Greenshoe = how to repay all those that helped along the way.

Scalable Startup

If the startup actually makes it to an IPO, there is actually something you can do. The Greenshoe is an over-allotment of stock options, up to 15% of the total offering at time of IPO. Since they’re options, acquirers only exercise if the stock goes up, and have no downside risk or capital outlay.

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The Venture Capital Secret: 3 Out of 4 Start-Ups Fail

online.wsj.com

SIGNIFICANCE PROMINENT. --> The Venture Capital Secret: 3 Out of 4 Start-Ups Fail. An entrepreneur with a hot technology and venture-capital funding becomes a billionaire in his 20s. The National Venture Capital Association estimates that 25% to 30% of venture-backed businesses fail. NAME David Cowan.

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What does it feel like to be the CEO of a start-up? 3 FULL TIME JOBS.

Scalable Startup

Raising Money – you are constantly doing this, preparing for this and thinking about this, whether it’s pre-seed, seed funding, debt, revenue, partnerships, IPO or other. When you’re the CEO of a startup, a real startup with product and some cash in the bank and/or revenue, there are 3 FULL TIME JOBS.

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Silicon Valley Uber Alles? I think so… Some of their Secret Weapons.

Scalable Startup

VCs of course, Angels, they invented the term Super Angel, San Francisco, Real Estate leverage, IPO millionaires, corporate funding, Asian and European money, and on and on. Money, money, money – There are so many giant sources of money in SV that it’s staggering.

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US Economic Risks (Sept 2010): Impact on Investors & Entrepreneurs

Both Sides of the Table

trillion out of our homes and spent 2/3rds of it on flat screen TVs, trips to Hawaii, time shares, Apple products and everything else we couldn’t afford. This affects M&A activities for startups, which with the reduction of the IPO market could spell lower returns in the short-term for technology startup investors.