Gust

NOVEMBER 14, 2011

After you have successfully attracted angels or venture capital with your business case, your million dollar product idea, and you have a signed term sheet, there is still one more hurdle to overcome before investors write the check. This is the dreaded “due diligence” process. Product or service readiness.

Technical Review 152

Technical Review Due Diligence Intellectual Property Private Equity 152

The Startup Magazine

AUGUST 11, 2023

Seed money can range from a relatively modest sum to a sizeable one, depending not only on the nature of the startup, the sector in which it will operate, and any other pertinent business aspects. Seed venture capital firms can make more significant follow-on investments to keep or increase their equity stake in the company.

Seed Stage 124

Seed Stage Technical Review Early Stage Due Diligence 124

View from Seed

APRIL 14, 2020

This led to a number of repercussions that most VC’s have lamented during this time, including higher prices, larger rounds, shoddy due diligence, and many companies raising large sums of venture capital that probably aren’t suited to VC funding. Business Models and Sectors.

Early Stage 374

Early Stage Software Review Technical Review Due Diligence 374

Startup Professionals Musings

SEPTEMBER 10, 2014

Struggling entrepreneurs are often so happy to get a funding offer that they neglect the recommended reverse due diligence on the investors. Investor due diligence on a startup is not a mysterious black art, but is nothing more than a final integrity check on all aspects of your business model, team, product, customers, and plan.

Technical Review 257

Technical Review Due Diligence Term Sheet Offshore 257

Feld Thoughts

AUGUST 25, 2015

In January, Jerry Neumann wrote a long and detailed analysis of his view of the VC industry in the 1980’s titled Heat Death: Venture Capital in the 1980’s. As dollars flowed into the industry, cooperation was replaced by competition, to the detriment of deal flow, due diligence, ability to add value and, of course, returns.

Venture Capital 70

Venture Capital SBIC Technical Review Silicon Valley 70

Startup Professionals Musings

MARCH 27, 2016

Struggling entrepreneurs are often so happy to get a funding offer that they neglect the recommended reverse due diligence on the investors. Investor due diligence on a startup is not a mysterious black art, but is nothing more than a final integrity check on all aspects of your business model, team, product, customers, and plan.

Technical Review 120

Technical Review Due Diligence Term Sheet Offshore 120

David Teten

JANUARY 19, 2021

Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. We detail below the major categories of VC: VENTURE CAPITAL TYPOLOGY. FLEXIBLE VC VS. OTHER VENTURE CAPITAL MODELS.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

www.xconomy.com

JUNE 9, 2012

New San Diego VC Firm Emerges as ‘The Moneyball of Venture Capital’. Here’s some big news for San Diego’s innovation economy: There’s a new venture capital firm in town—and its investment methodology represents a fundamentally different approach to the conventional business model for venture investing.

San Diego 40

San Diego Venture Capital Technical Review San Francisco 40

ReadWriteStart

JUNE 1, 2020

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. For these businesses, it is imperative to get funding from the start without which the company cannot be set up. Equity investors. Debt investors.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Up and Running

JULY 2, 2014

Picking the right attorney in your startup is as important as picking the right business partner. You can’t underestimate the importance of selecting an attorney who “gets” your business model, your market opportunity, and most importantly, your fundraising and exit strategy. My business partner and I were elated.

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. I believe that Revenue-Based Investing (“RBI”) VCs are on the forefront of what will become a major segment of the venture ecosystem. Alternative Capital Summit. Issues with the classic VC model.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Up and Running

MARCH 14, 2018

Your revenue or business model. If you’re seeking large sums of investment capital (over $1M), most investors will want to know what your exit strategy is. Show you’ve done some due diligence on this exit strategy, including the companies you’re targeting, and why it would make sense three, five, or 10 years down the road.

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Angel Investor 164

David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance.

Revenue 60

Revenue Technical Review Software Review Equity 60

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. . We are also seeing technology evaluation as an increasingly important part of LP operational due diligence. 6) Due diligence. I personally use Salesforce.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

David Teten

JANUARY 11, 2020

Many investors including me spend most of our day doing the same things people have always done in our job: in my case, due diligence, deal execution, etc. In the venture capital/private equity business, investors are B2B microinfluencers. What tech stack should a microinfluencer use? I welcome suggestions.

Social Media 60

Social Media Technical Review Media Private Equity 60

Professor VC

JANUARY 27, 2011

How Much Diligence is Due.Or Ive addressed the due diligence question in previous posts, but this came up again in a debate we were having at a recent meeting of the Sand Hill Angels. I appreciate your thoughts here on Due Diligence as it's been a question of mine for a few months now. ProfessorVC.

Technical Review 31

Technical Review Due Diligence Silicon Valley San Jose 31

Version One Ventures

SEPTEMBER 4, 2013

Savvy entrepreneurs put in the time doing their due diligence on potential connections and then ask the strongest connector for the introduction. Initially, you can approach an investor soliciting advice on something specific, such as feedback on your marketing & sales approach, business model, or long-term product vision.

Due Diligence 161

Due Diligence Venture Capital Deal Flow Social Media 161

YoungUpstarts

MAY 8, 2018

Just because you can raise capital from a certain investor, doesn’t necessarily mean you should. Audit investors; they aren’t the only ones who need to conduct due diligence. . If investors express a strong preference changing your business model, product, or team, think twice. It’s your vision, not theirs.

Seed Stage 133

Seed Stage Due Diligence Cofounder New York 133

The Equity Kicker

MAY 13, 2013

more prominent in our due diligence process, because at the end of the day if you build something people want then you are generating value and that means your company will most likely be worth something to somebody, even without a business model. Startup general interest Venture Capital'

Due Diligence 130

Due Diligence Startup Venture Capital Hiring 130

Babbling VC

JUNE 10, 2010

The heavy lifting which takes place on both sides as part of the due diligence process is not addressed with this post. A former colleague of mine from SAP introduced me to this business. He was turned on to their business model as their tax advisor was also his tax advisor.

Software Review 64

Software Review Due Diligence Venture Capital Germany 64

Steve Blank

DECEMBER 7, 2009

Our business model changed as we realized that to become a large company, we needed to automate more than just a few marketers. We had validated our new assumptions by a set of orders, and we had pivoted on our business model. Are These Your Slides? Truth be told, we were no longer the company in those stolen slides.

Silicon Valley 225

Silicon Valley Non-disclosure Agreement NDA Startup 225

genylabs.typepad.com

SEPTEMBER 24, 2011

Even the best venture capital firms have a lot of failures and few successes. Before taking equity in a company I go through a VC-like investment and due diligence process. While Ive made at least my share of mistakes taking equity in lieu of pay, I continue to see this as a key part of my business model.

Equity 40

Equity Technical Review San Jose Stock 40

VC Cafe

SEPTEMBER 26, 2010

It doesn’t mean that you should change your business model because one person suggested it, but listed to the feedback and if you see similar patterns over and over again, make changes. Patents are nice but… in a consumer Internet business, it’s most likely that you aren’t re-inventing the wheel.

Elevator Pitch 102

Elevator Pitch Incubator Technical Review Startup 102

Professor VC

SEPTEMBER 26, 2011

Labels: due diligence , early stage investing , moneyball , valuation. The Most Important Venture Capital Statistic. I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. Venture News. Steve Bennet.

Technical Review 38

Technical Review Early Stage San Jose Angel Investor 38

Professor VC

JANUARY 20, 2009

The Most Important Venture Capital Statistic. At Fliqz, we met or exceeded the sales plan every month during the due diligence process. Labels: bootstrapping , CFO , Fliqz , venture capital , venture financing. The Most Important Venture Capital Statistic. Venture News.

Venture Capital 28

Venture Capital Silicon Valley San Jose Bootstrapping 28

Tim Keane

JANUARY 12, 2010

  I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] and walked through each proposed term and why it is or isn’t important.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

David Teten

DECEMBER 12, 2017

In his white paper How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood , PEVCTECH.com founder David Teten explored how private equity and venture capital investors are trying to automate more of their job. How do VCs originate investments?

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

infochachkie.com

SEPTEMBER 24, 2011

There is an inherent conflict in a consultant’s business model and the needs of a startup. The ultimate irony is that when we later sold the Company for a substantial amount of money, it was discovered during due diligence that the prestigiously inept firm (whose name rhymes with a type of pasta) screwed up a basic corporate filing.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

Steve Blank

NOVEMBER 5, 2009

Chasing funding versus chasing customers and a repeatable and scalable business model, is one reason startups fail. Is there a profitable business model? The Traditional VC Pitch Entrepreneurs who pursue the traditional product development model don’t have customer data to answer these questions. Can it scale?”

Customer Development 262

Customer Development Developer Customer Silicon Valley 262

Up and Running

MAY 28, 2015

I guess one of the things to talk about is how someone might maybe use business model canvas first and then the lean plan. After the pitch, we’ll ask them for the business plan, and then we’ll use the business plan to do the due diligence. Do I need venture capital?

Lean 60

Lean Business Plan Video Software Review 60

Steve Blank

JULY 2, 2009

To an entrepreneur, being asked to join a venture firm with an Entrepreneur-in-Residence title means you have been tapped on the shoulder by the VC gods. The CDROM content business in the early 1990’s was one of the many of the long line of venture capital fads. I was going to find out why this wasn’t a good idea.

Silicon Valley 120

Silicon Valley Technical Review RSS Software Review 120

Seeing Both Sides

OCTOBER 6, 2010

As a venture capitalist reading the book and trying to absorb its investment lessons, I wondered – can VCs be value investors? The precepts and principals therefore should apply to the venture capital business as well. Sadly, they don’t. .

Omaha 35

Omaha Due Diligence Silicon Valley Stock 35

Professor VC

FEBRUARY 26, 2010

Of course, when 10-year returns for the entire venture capital asset class is about to drop below zero, drastic measures may be in order. While this is not surprising, it would be interesting to look at returns provided to venture capital firms from novice and serial entrepreneurs. Steve Bennet. at 1:42 PM. Newer Post.

San Jose 28

San Jose Silicon Valley Venture Capital Angel Investor 28

Professor VC

SEPTEMBER 24, 2009

always focus on the business model and assumptions, but there are too many unknowns to put much faith in the future cash flow projections. Labels: due diligence , financial analysis , venture capital. The Most Important Venture Capital Statistic. Venture News. Steve Bennet. at 1:04 PM.

San Jose 33

San Jose Angel Investor Venture Capital Mezzanine 33

BeyondVC

JUNE 29, 2005

I am not sure how many entrepreneurs understand the structure of venture capital funds but the bottom line is that while VCs manage funds, we ultimately report to our investors or Limited Partners (LPs). It is not our money, and we have a fiduciary responsibility to manage it properly and generate the returns our LPs expect of us.

LP 60

LP Private Equity Due Diligence Venture Capital 60

reidhoffman.org

NOVEMBER 12, 2013

But with so many investors still licking their wounds from the dot-com bust, many focused on proven business models, such as advertising or e-commerce. The general rule is one business model drives the business. As it happened, we did end up pursuing all three lines of business.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

Up and Running

MARCH 11, 2015

Another assumption is that you’ve actually conducted due diligence on your own business, and these are the areas of your team, financials, your competition, your IP, market trends, because the best pitches I’ve ever delivered were when investors were raising their hands and asking me questions about, “How is your IP protected?”

Technical Review 60

Technical Review Software Review Due Diligence Exit Strategy 60