Gust

SEPTEMBER 10, 2014

The question is based on a misunderstanding of how venture capital investment works. Instead, they have a limited amount of money entrusted to them by limited partners, and they invest in a very, very few companies each year. First of all, VC funds do not invest in ideas. Only companies get funded.

Limited Partner 116

Limited Partner Venture Capital Operations Partner 116

Gust

AUGUST 10, 2014

Here are some basic rules of thumb that every Angel or venture capital equity investor uses, to help you anticipate their reactions. Of course, the quality of your management team, or demonstrated performance in prior similar ventures, can override any or all of these rules of thumb.

Liquidity Event 176

Liquidity Event Equity Venture Capital Merger 176

Gust

FEBRUARY 26, 2014

Venture Capitalists. The big one for VCs is the annual meeting of the National Venture Capital Association. Usually two or three days, the speakers are mostly major venture partners talking about issues facing the industry, such as regulatory, fundraising, returns, etc. NVCA Annual Meeting.

Angel Investor 125

Angel Investor Global Angel Groups Europe 125

Gust

DECEMBER 29, 2013

Some entrepreneurs can’t decide if they want to be a Limited Liability Corporation (LLC) or a C-corporation, or they don’t have the money, so they put off doing anything until the first venture capital round, or until the first lawsuit occurs. Rely on informal agreements with partners. We all have our favorite story on this one.

Startup 183

Startup Intellectual Property LLC Burn Rate 183

Gust

OCTOBER 31, 2011

If you or any of your partners really don’t have the credentials, the commitment or the interest, you won’t succeed. Every partner and employee can kill your success potential in a heartbeat, so don’t take shortcuts on your hiring and training practices. Customers don’t like people who don’t show their passion and love for the job. .

Angel Investor 143

Angel Investor Venture Capital Partner Networking 143

Gust

OCTOBER 8, 2014

And if you have raised $6 million from non-startup-type investors they will probably see you as an entrepreneur who prefers easy, dumb money over putting in the effort to find the right long-term investors no matter how you try to convince them your hedge-fund buddies really make great funding partners for a startup. Reblogged via [link].

Cap Table 136

Cap Table Silicon Valley Term Sheet Non-Compete 136

Gust

JULY 1, 2012

Generally, the same criteria applies to venture capital investors, although they invest other people’s money, at a later stage, in larger amounts. Entrepreneurs in an unfamiliar domain better find a partner who has been there before they apply for funding. First-time founders will find that most angels turn into mirages.

Angel Groups 143

Angel Groups Angel Investor Early Stage Startup 143

Gust

DECEMBER 21, 2011

You are much more flexible than VCs or strategic partners – they prefer not to travel, a they have lots of local opportunities to invest their money. Your chances of raising funds from a Valley VC for a startup in the Bay Area are much higher than they would be in other locations.

Silicon Valley 107

Silicon Valley Southern California Tucson Seattle 107

Gust

NOVEMBER 11, 2011

Usually these term sheets involve convertible notes, which are supposed to convert to equity at the next round of financing, like when the serious venture capitalists do a Series A. I’ve seen several of these fall apart. Why did they want to act as if they owned a piece of her business?

Software Review 79

Software Review Term Sheet Due Diligence Angel Investor 79

Gust

OCTOBER 18, 2011

He’d treated us – a group of local investors – to a pitch punctuated with detailed stories of how previous partners, an investor , and an attorney had screwed him. Complaining about past partners, investors, competitors, lawyers, or even plain rotten luck doesn’t usually spark investor interest. We sat in stunned silence.

Intellectual Property 124

Intellectual Property Valuation Partner Revenue 124

Gust

DECEMBER 27, 2011

Consider the person who finds a good-looking partner to take home from the bar at closing time, but then wakes up in the morning wondering “What did I just do?” Due diligence on an investor is where you validate the track record, operating style, and motivation of your new potential partner.

Due Diligence 119

Due Diligence Entrepreneur Offshore Angel Groups 119

Gust

NOVEMBER 28, 2011

Investors don’t like “equal partner” situations, or worse yet, family pairs in top positions. Being relentlessly resourceful is definitely not what you learn in big companies, or in most schools. The buck stops here. ” The CEO has to be confident and clearly the final decision maker.

Startup 147

Startup Bootstrapping Social Network Internet 147

Gust

JANUARY 3, 2012

Here are some tips on how to recognize whether a partner, consultant, or employee is a mentor or a critic: 1. A mentor’s goal is to help you build your strengths to avoid problems and pitfalls, while a critic feels compelled to point out your weaknesses. Earns your absolute trust.

Government 98

Government Employee Community Entrepreneur 98

Gust

OCTOBER 31, 2011

Taking cash –and/or stock –from a big partner who can leverage your business, even at a number that doesn’t thrill you– allows you to put a notch in your belt, build credibility with investors, and prepare to move to your next act. And even then it will be nearly impossible to sell any big chunk of the holdings).

IPO 70

IPO Valuation Stock Partner 70

Gust

NOVEMBER 4, 2011

VantagePoint Venture Partners came to the rescue in late 2003 with an infusion of $15 million in capital, adding Andrew Sheehan (now at Sutter Hill Ventures ) and David Carlick (now at Rho Ventures ) to the Board.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98