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Venture Capital Q&A Session

Both Sides of the Table

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. In fact, far better if you haven’t raised venture capital.

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10 Tips On Due Diligence On Any Startup Funding Offer

Startup Professionals Musings

No real investor or venture capital firm asks for money from the company they are intending to invest in. Deposit required to hold your terms. In this scam, you are offered a very attractive term sheet due to close in 90 days or so, with a deposit required to hold your position while due diligence is being conducted.

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Why I Look for High Conviction, not Consensus, in Venture Capital Decisions

Both Sides of the Table

One of the least understood parts of the venture capital industry and venture capital firms is how investment decisions actually get made. In fact, choosing the right partner to champion your deal can have a huge impact on whether or not you get a term sheet in the first place.

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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. No hidden terms.

Valuation 405
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10 Scams To Avoid While Seeking New Venture Funding

Startup Professionals Musings

No real investor or venture capital firm asks for money from the company they are intending to invest in. Deposit required to hold your terms. In this scam, you are offered a very attractive term sheet due to close in 90 days or so, with a deposit required to hold your position while due diligence is being conducted.

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Retro: My Favorite Blog Post on Raising VC

Both Sides of the Table

My blog linked to Brad Feld’s blog because I was so grateful for his series on term sheets and he was one of the biggest reasons that as a VC I felt compelled to blog. On December 3rd Brad Feld wrote a one paragraph blog post titled “ Raising Venture Capital &# in which he linked to my blog. Tempus Fugit.

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Startups Need To Be Skeptical Of Bank Funding Offers

Startup Professionals Musings

The name “investment bank” somehow always sounded like a place where I could deposit my investments, and maybe even earn a little interest. In addition, they will likely take between 3% and 10% of any capital raised. For these fees, they will develop a business plan, solicit investors, and negotiate term sheets to a closing.