Steve Blank

MARCH 16, 2016

Traditional lenders (banks) think that startups are too risky for a traditional bank loan. Traditional lenders (banks) think that startups are too risky for a traditional bank loan. And not just any returns, VC’s expect large returns. There are many reasons to found a startup. ——-. The Good News.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

David Teten

OCTOBER 1, 2015

I’ve seen a range of options for supporting entrepreneurs, which I can rank from least to most involvement in companies by investors: financier VCs, e.g., Correlation Ventures. mentor VCs, e.g., most VCs. portfolio operator VCs, e.g., Andreessen Horowitz, ff Venture Capital, First Round Capital, Google Ventures.

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60

Startup Lessons Learned

MAY 31, 2019

The reality today is that capital is more available than ever and entrepreneurs have become more sophisticated, so founders are looking for more than just cash from their venture backers. They’re looking for guidance on building the company, the ability to tap into a VC’s network, and help with potential business opportunities.

Lean 108

Lean Venture Capital Conversion IPO 108

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. Which VCs are comfortable using this approach? This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. A new wave of Revenue-Based Investors (“RBI”) are emerging.

Revenue 60

Revenue Technical Review Software Review Equity 60

David Teten

DECEMBER 2, 2019

Fortunately, there are a wide range of organizations that specifically want to support you, not just the VC community. The Aspen Tech Policy Hub is a West Coast policy incubator, training a new generation of tech policy entrepreneurs. If you think I’ve missed any, please contact me. Aspen Tech Policy Hub.

Technical Review 60

Technical Review SBIR Dilution Silicon Valley 60

Steve Blank

NOVEMBER 5, 2009

This post describes how companies using the Customer Development model can increase their credibility, valuation and probability of getting a first round of funding by presenting their results in a “Lesson Learned&# venture pitch. What are Early Stage VC’s Really Asking? Are there customers for what you are building?

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Customer Development Developer Customer Silicon Valley 262

David Teten

JULY 10, 2019

Would you like to have a salary from day one that you work full-time on your startup? As a VC, I’m interested in working with companies with large-scale revenue potential, and that’s the company we envision. As a VC, I’m interested in working with companies with large-scale revenue potential, and that’s the company we envision.

America 60

America Technical Review Advisory Board Due Diligence 60

David Teten

MAY 7, 2019

Would you like to have a salary from day one that you work full-time on your startup? As a VC, I’m interested in working with companies with large-scale revenue potential, and that’s the company we envision. We assume we’ll be structured as a traditional Delaware C corporation. Do you want to make America functional again ?

America 60

America Technical Review Advisory Board Due Diligence 60

Steve Blank

JULY 16, 2009

Meanwhile my partner was in heaven working with his newly hired group of game designers directing and producing our first games. While the Rocket Science press juggernaut moved inexorably forward, a few troubling facts kept trying to bubble up into my consciousness. That’s OK, because we knew better. I know what’s great and what’s not.

Silicon Valley 207

Silicon Valley RSS Video San Diego 207

Austin Startup

NOVEMBER 25, 2018

As I mentioned at the beginning of this series/ebook, over the years I’ve noticed that I tend to frequently share certain Lucky7 posts with entrepreneurs we’ve backed , team members at data.world, or other startup investors I know. So I’m packaging the best of them up for you here in a new series called The Entrepreneur’s Essentials.

Bootstrapping 48

Bootstrapping Austin Equity Cofounder 48

Steve Blank

JULY 2, 2009

Entrepreneur-in-Residence After SuperMac I had been approached by one of our venture investors to be an entrepreneur in residence (EIR), a Silicon Valley phrase which says one thing but means another. To a VC it’s a cheap investment, and if they somehow don’t bind you to their firm, someone else will. They have your soul.

Silicon Valley 120

Silicon Valley Technical Review RSS Software Review 120

ReadWriteStart

SEPTEMBER 9, 2019

Mark McKee : Most first-time founders I’ve met don’t, frankly. Serial entrepreneurs usually have a sense of the funding landscape, but new ones typically assume venture capital must be the right route. But there are real trade-offs that many first-time founders aren’t aware of. VCs have been through it before.

Venture Capital 105

Venture Capital Equity SBA Finance 105

Steve Blank

AUGUST 31, 2009

The first hint lies in its name; this is a product development model, not a marketing model, not a sales hiring model, not a customer acquisition model, not even a financing model (and we’ll also find that in most cases it’s even a poor model to use to develop a product.) So what’s wrong the product development model?

Customer Development 238

Customer Development Developer Customer Silicon Valley 238

Haystack

JANUARY 18, 2020

Having spent time around and then in the world of VC in the Bay Area during the last decade, I’ve been reflecting on how different norms in the industry have changed. At the start of 2010, there was some unwritten VC industry conventions that have been tested, challenged, and upended in the last decade.

Seattle 130

Seattle Seed Stage Deal Flow Vertical 130

Steve Blank

NOVEMBER 12, 2009

But Cafepress’s most memorable moment was when the founders used a “Lessons Learned” VC pitch to raise their second round of funding and got an 8-digit term sheet that same afternoon. Cafepress literally started in their garage and was another set of experiments only this time it caught fire. Here’s how they did it.

Venture Capital 209

Venture Capital Silicon Valley RSS Hockey Stick 209

David Teten

AUGUST 21, 2019

Most founders who are raising capital look first to traditional equity VCs. Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. Who are the major Revenue-Based Investing VCs? Should your new VC fund use Revenue-Based Investing?

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Both Sides of the Table

JUNE 5, 2016

Here is a brief history first to put the changes into context. In other words, it isn’t that VCs suddenly got smart, it’s that the costs of starting a company went down dramatically. Non VC Growth Rounds. Late-Stage VCs Pay Up. Rise of Seed. To understand today’s trend it’s worth stepping back a decade or so.

Venture Capital 150

Venture Capital Silicon Valley Burn Rate LP 150

Hearpreneur

JULY 30, 2016

Female entrepreneurs and business owners are no longer taken with a grain of salt. Female entrepreneurs continue to make strides in business despite the pay gap, discrimination, and gender politics which play out on both large and small stages. In 2015, businesses owned by women brought in more than $1.5 trillion in sales.

Technical Review 48

Technical Review Technical Cofounder Entrepreneur CTO Hire 48

View from Seed

SEPTEMBER 9, 2015

Nearly all of the guidance for meetings with VCs is centered on the very first meeting: how to get it, how to prepare a pitch deck , how to run the meeting , etc. What about the rest of the VC fundraising process? How should an entrepreneur approach the full set of meetings and emails during a fundraise? Second Meeting.

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Term Sheet Partner Audience Founder 120

View from Seed

SEPTEMBER 9, 2015

Nearly all of the guidance for meetings with VCs is centered on the very first meeting: how to get it, how to prepare a pitch deck , how to run the meeting , etc. What about the rest of the VC fundraising process? How should an entrepreneur approach the full set of meetings and emails during a fundraise? Second Meeting.

Term Sheet 120

Term Sheet Partner Audience Founder 120

thebarefootvc

DECEMBER 16, 2011

The 2011 Nobel Peace Prize was awarded to three women: Ellen Johnson Sirleaf, Leymah Gbowee and Tawakkol Karman “for their non-violent struggle for the safety of women and for women’s rights to full participation in peace-building work” The times, they are a-changing. What We Saw in 2011….

Technical Review 110

Technical Review India Mobile Hockey Stick 110

Both Sides of the Table

SEPTEMBER 27, 2010

And that was evident on today’s Angel vs. VC panel. Perhaps I shouldn’t have pushed to be on the panel in the first place. The VC industry is segmenting – I have spoken about this many times before. We need people at all stages of the funding lifecycle and not just VCs. Answer: Not much.

Liquidity Event 308

Liquidity Event Silicon Valley Seed Stage Finance 308

Genuine VC

JULY 10, 2012

There are essentially two distinct basic strategies for startup entrepreneurs to raise a seed round of capital: Subscription approach – An entrepreneur sets a structure (usually a convertible note) and recruits individual angel investors who subscribe to the round, all without a term-driving lead investor.

Syndicate 207

Syndicate Syndication Seed Stage Portfolio 207

Seeing Both Sides

SEPTEMBER 15, 2015

Decades ago, the thesis of Yossi Vardi , a prolific technology entrepreneur who has invested in 75 Israeli startups, was that Israeli entrepreneurs should seek quick exit opportunities through global corporations interested in buying a window into Israeli talent and technology. Israel has been branded the “startup nation.”

Cofounder 20

Cofounder Technical Review United States 20

Both Sides of the Table

AUGUST 17, 2009

This is part of my ongoing series “ Pitching a VC “ There’s a great meme developing this morning on the need to simplify funding terms and documents. The meme was kicked off by Chris Dixon with this post saying that term sheets need to be simplified and align investor / founder interests. I have this mentality, too.

Founder Vesting 252

Founder Vesting Vesting Founder Term Sheet 252

Both Sides of the Table

FEBRUARY 14, 2016

Most venture capitalists who have been in this business for a long time foresaw this correction and have been talking about it privately for the better part of the last year or two. What is the True Sentiment of VCs? It pains me to see the typical (and predictable) responses on Twitter, “VCs want prices to drop!”

Valuation 150

Valuation Down Round Startup Later Stage 150

Both Sides of the Table

MARCH 1, 2010

I call it the entrepreneur thesis. I’m not talk about the age old debate amongst investors whether you back entrepreneurs, markets or products (or as people like to hedge – product / market fit). It’s entrepreneurs I back. It’s what I call the “entrepreneur thesis.” So what is the “entrepreneur thesis?”

Entrepreneur 321

Entrepreneur Warrant Silicon Valley Early Stage 321

David Teten

NOVEMBER 15, 2013

Asset management also shows the traditional earmarks of an industry ripe for disruption — most obviously, unhappy customers and extremely profitable incumbents. Angel investors earn higher returns than small VCs, who in turn earn higher returns than large VCs, let alone most other asset classes.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Cracking the Code

NOVEMBER 3, 2015

While much has been said ‘how to pitch a VC’ ($1B+ market, competition, differentiation…), I brought a new approach and focus on elements which are outside of the traditional Powerpoint slides. Entrepreneurs should apply a similar approach when pitching VCs. One of the element to consider is the size of the fund.

Europe 48

Europe France API Viral 48

A Crowded Space

AUGUST 26, 2013

It promises increased efficiency in the marketplace as worthy startups may be able to raise money faster and simpler than through traditional channels. Consider an early stage company - and assume they have 2 choices, pursue crowd-funding or raise VC money. (Note: for this article I am referring to equity crowd-funding exclusively.

Later Stage 87

Later Stage Liquidity Event Equity Vertical 87

Cracking the Code

DECEMBER 11, 2015

Mastering your pitch to a VC, prospective customers, new hires or partners is part art and part science. As a VC, I hear dozens of these every week, and what I’ve learned is that a masterful and successful pitch for a SaaS company involves 10 key items. They invest in entrepreneurs who want to change the world.

San Francisco 48

San Francisco Churn Rate Silicon Valley Engineer 48

Hunter Walker

APRIL 4, 2015

With Homebrew we’re focused on being ‘partners of conviction’ to founders during the first few years of their companies. So what’s a seed fund to do when a “seed” round is $20m? Here’s what we’ve observed and how we currently think of these rounds.

Cofounder 48

Cofounder Lead Investor Valuation Framework 48

The Startup Lawyer

JANUARY 6, 2011

He graciously obliged and the following Q&A about AOL Ventures and “Corporate VC&# is an excerpt from that conversation/interview: Give us the background on your fund and what you guys are up to ? Sure – AOL Ventures is the VC arm of AOL , focused on early stage investing in consumer internet businesses.

Early Stage 58

Early Stage LP Later Stage Balance Sheet 58

Steve Blank

FEBRUARY 23, 2009

In hindsight it appeared clear that startups that survive the first few tough years do not follow the traditional product-centric launch model espoused by product managers or the venture capital community. Joseph Campbell’s insight of the repeatable patterns in mythology is equally applicable to building a successful startup.

Silicon Valley 127

Silicon Valley RSS Venture Capital California 127

This is going to be BIG.

NOVEMBER 16, 2023

It comes up a lot with my coaching clients who aspire to be top VCs and are trying to figure out how to self-assess and goal set. Luckily for aspirational baseball players, pitch velocity, spin rate, and just about every other aspect of playing baseball are highly quantifiable in real-time. Just how good is good? How do you measure it?

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Non-Compete Cofounder Cap Table Reputation 97