The Startup Magazine

JULY 1, 2022

Conversely, if more people want to sell a crypto coin rather than buy, the price will go down. How is Crypto an investment? Like the stock market, Cryptocurrency can be bought and sold based on supply and demand. When demand is high the price people are willing to pay will go up.

Stock 134

Stock Institutional Investors Demand Portfolio 134

This is going to be BIG.

OCTOBER 12, 2020

I could never have imagined going from a 25-year-old analyst at an institutional investor to seeing what I’ve seen and being a part of this community. I watched in June as VCs tiptoed into race conversations in a way that revealed their discomfort, fear, and unfamiliarity around doing hard work and taking risks in this area.

LP 136

LP Technical Review Software Review Valuation 136

Ben's Blog

MAY 24, 2021

Concerns have been raised around what this reveals about the price discovery process for IPOs and whether retail investors are disadvantaged relative to certain institutional investors that have access to purchase shares at the IPO process. First, as the below chart shows, IPO pops are not a new phenomenon.

SEC 36

SEC Accredited Investor IPO Technical Review 36

Austin Startup

JANUARY 3, 2019

Feedback to investors about what helps and doesn’t help founders when fundraising. I originally asked this question to several founders with the intent of addressing angel investors but I’ve found it doesn’t exclude other institutional investors either.

Founder 48

Founder Angel Investor Technical Review Due Diligence 48

David Teten

SEPTEMBER 5, 2014

I’ve also presented at a range of industry conferences on how institutional investors can use professional networks for research , origination , market research , and value creation. Here the rigor in qualifying the GLG Share members helps, because we want the conversation to be valuable on both sides.

New York 114

New York Technical Review Networking Advisory Board 114

abovethecrowd.com

AUGUST 23, 2020

In every conversation about IPOs vs Direct Listings these are the only two things that matter, and they are precisely the two things that IPO advocates are embarrassed to discuss. Talk to any management team from any IPO in the past three years, and you will find they had this exact conversation. And there are only two.

IPO 118

IPO Silicon Valley Warrant Matching 118

Austin Startup

APRIL 1, 2017

If in reading the above, you feel the advice carries a perspective that is a tad too cynical and untrusting, I suggest that you go talk to multiple founder CEOs who have gone through rounds of funding with institutional investors. But institutional investors have a job to do, and it’s not to be your BFF.

Term Sheet 48

Term Sheet Institutional Investors Technical Review Lead Investor 48

Startup Professionals Musings

MARCH 9, 2018

That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations. Everyone wants to keep up and even have a say in your activities, and that can be a lot of conversations to manage. This money is real, so don’t assume it doesn’t have to be repaid.

Cram Down 148

Cram Down Angel Investor Equity Dividend 148

Startup Professionals Musings

OCTOBER 10, 2014

That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations. Everyone wants to keep up and even have a say in your activities, and that can be a lot of conversations to manage. This money is real, so don’t assume it doesn’t have to be repaid.

Founder 254

Founder Cram Down Angel Investor Equity 254

Austin Startup

JUNE 30, 2017

Here are some thoughts, based on conversations I’ve had with founders and my own observations in the market, about the evolution of accelerators and how entrepreneurs are likely to engage them going forward. Top accelerators have corrected an imbalance between the strength of founders’ networks and those of VCs.

Curation 48

Curation Startup Cofounder Equity 48

Hunter Walker

SEPTEMBER 29, 2022

We started by asking our LPs (a relatively small number of institutional investors) and other experienced VCs what they’ve seen play out and how, if applicable, they decide what to do with their own holdings. Conversely, if you’re not a good picker, it’s difficult to overcome that, even if you had perfect timing on secondary sales.

Venture Capital 122

Venture Capital Cap Table LP Equity 122

Hunter Walker

JUNE 29, 2014

I’m suprised how many founders – even multiple time entrepreneurs – are unfamiliar with the institutional investors that back most of the major venture funds. At Homebrew’s first annual meeting this past spring we invited founders and fund advisors to a dinner with our four major LPs.

Founder 99

Founder Institutional Investors Silicon Valley Portfolio 99

Startup Professionals Musings

APRIL 17, 2013

That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations. Everyone wants to keep up and even have a say in your activities, and that can be a lot of conversations to manage. This money is real, so don’t assume it doesn’t have to be repaid.

Cram Down 230

Cram Down Angel Investor Equity Dividend 230

David Teten

DECEMBER 3, 2019

Excel and Google simply aren’t going to cut it if you expect to build a high quality institutional investor base.”. Beacon technology system , which automatically outbound-solicits a universe of over 10,000 institutional investors, without requiring LPs to register for an online network of funds. .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Startup Professionals Musings

NOVEMBER 11, 2015

That’s why it is better to use institutional investors and loans when you are able, with realistic time frame expectations. Everyone wants to keep up and even have a say in your activities, and that can be a lot of conversations to manage. This money is real, so don’t assume it doesn’t have to be repaid.

Cram Down 120

Cram Down Angel Investor Equity Dividend 120

Up and Running

MARCH 21, 2016

If they seem interested in your business, they will keep the conversation going,” says Diana. While there is something of an art to the organic soft-sell, when done right it can make investors more likely to consider your business. On the surface, it seems like it could be a little awkward. Not necessarily. “If

Cofounder 60

Cofounder Metrics Angel Investor Silicon Valley 60

Austin Startup

APRIL 1, 2018

Although we can and should agree that cashews are better than almonds, the main point is that professional investors are competing each other away into riskier and riskier types of assets. Institutional investors can’t just not invest at all. And then the conversation moved to guessing where the world may go.

Institutional Investors 48

Institutional Investors LP Portfolio Valuation 48

Austin Startup

JUNE 14, 2017

Thankfully the transparency of the web is weakening this dynamic, but institutional investors with heavy local influence often like to see local VC lawyers in the company counsel seat because they’ve strategically built leverage over those lawyers by (i) being their clients, and/or (ii) pushing portfolio companies to use them as company counsel.

Silicon Valley 48

Silicon Valley Houston San Antonio Austin 48

Both Sides of the Table

MAY 30, 2018

Before raising capital you need to have a conversation with your existing investors to get a sense on what they’re thinking or at a minimum you better have an intuitive feel for it. Knowing that other institutional investors (including your insiders) are paying the same price as them in this round helps. Many investors.

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

David Teten

MARCH 24, 2014

We had an email conversation about the rationality, or lack of rationality, of professional investors. For Professional Institutional investors: agency risk is a huge problem. My recent post on “ Asset Management is a Bizarre Industry Ripe for Disruption ” got one of the most interesting reactions I’ve received.

Software Review 114

Software Review Due Diligence Venture Capital Portfolio 114

Rob Go

AUGUST 11, 2011

I really think that only 5% or fewer of startups cross the threshold of institutional investors. But its very hard to predict whether any particular company will be attractive to a particular investor. What almost all investors can give you a sense for is whether you have at least s 50% chance or raising money if you try.

Software Review 62

Software Review Florida Institutional Investors Lean 62

Growthink Blog

JULY 7, 2013

However, the investor owns a piece of your company and if/when you exit, they will take their share. Conversely, with debt, you have to pay both interest and the principle back. The investor would get $4 million of the sales price (40%). Conversely, let''s say the investor lent you the $1 million at 10% interest.

Entrepreneur 128

Entrepreneur Equity Institutional Investors Portfolio 128

David Teten

JULY 12, 2017

When I meet with other VCs, family offices, and other institutional investors, the most common question I get is: “What are the highest-potential companies in your portfolio which are raising now?” These all help to maintain the firms’ brand awareness, and I get a lot of useful market insight from these conversations.

Syndicate 60

Syndicate Syndication Institutional Investors LP 60

View from Seed

MARCH 26, 2015

Much digital ink has been spilled about what dollar amount constitutes a pre-seed and how that might affect a startup’s ability to go raise a “normal” seed round from institutional investors. This conversation is about optimizing fundraising “optics,” which shouldn’t be a primary focus for entrepreneurs.

Seed Capital 120

Seed Capital Institutional Investors Venture Capital Partner 120

Austin Startup

JANUARY 2, 2021

He was the first institutional investor in Facebook and also an early-stage investor in groundbreaking companies like Etsy, Spotify, C3.AI, Why Jim Breyer? Jim Breyer has spent his career on the cutting edge. AI, 23&Me, Headspace, Stash, Grammarly and many others.

Silicon Valley 100

Silicon Valley Austin Texas Raleigh 100

David Teten

APRIL 22, 2013

ff VC became the only and first institutional investor and I joined the company’s board in May. From my first conversations with Adam, he said that he was planning to bring in a business-focused CEO. (This is the second ff VC company that KPCB has invested in, after Klout.). Adam and team proceeded to do exactly that.

Venture Capital 114

Venture Capital Security Operations Atlanta 114

David Teten

FEBRUARY 1, 2017

(Most significant VCs in New York , including ff Venture Capital , are active investors in fintech. Conversion Capital. QED Investors. 14 Industry Trends the Top FinTech Execs are Watching (Institutional Investor). Anthemis Group. Aquiline Capital Partners. Broadhaven. Digital Currency Group. FinTech Collective.

New York 60

New York Community DC Boston 60

Austin Startup

JULY 24, 2017

I have never been in the position where I needed to ask anyone — friends, family, angels, institutional investors — for the capital to execute on an idea, and to develop a business around said idea. Full credit to them for, you know, spending the time to collect information on several thousand investors.

Austin 54

Austin Institutional Investors Angel Investor Database 54

Duct Tape Marketing

AUGUST 21, 2019

Jeff Fromm: And then you also have the CEO of BlackRock, which is the other side of the coin, the institutional investor, saying, “In the next few years, if you’re not doing this, we’re simply not gonna invest in your brand. What are you doing as a company to change that conversation? Not all their brands do.

Kansas City 51

Kansas City Kansas Technical Review Conversion 51

K9 Ventures

MARCH 23, 2011

The typical fix for this problem is to put in a cap in the note for the pre-money price for conversion. I am sometimes surprised at how many founders and investors don’t understand the mathematics of a note. What percent of the company should the note holder get on conversion? There are multiple issues at hand here.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

ithacaVC

DECEMBER 22, 2012

I recently engaged in a conversation (over a few days) about the need for a seed stage company to have a board member other than the founder. My subjective view is that once a company raises money from a few institutional investors over $400K – $500K in total that the company should have an investor representative on the board.

Seed Stage 82

Seed Stage Preferred Stock Founder Angel Investor 82

Genuine VC

MARCH 25, 2010

I had coffee with an entrepreneur friend the other day who is in the early stages of putting a company together, and he recounted how his informal conversations with a venture capitalist had quickly escalated into a full partner pitch in just a few weeks. Make connections to people who will be able to improve your business in some way.

Early Stage 123

Early Stage Venture Capital Term Sheet Conversion 123

Genuine VC

MARCH 25, 2010

I had coffee with an entrepreneur friend the other day who is in the early stages of putting a company together, and he recounted how his informal conversations with a venture capitalist had quickly escalated into a full partner pitch in just a few weeks. Make connections to people who will be able to improve your business in some way.

Early Stage 121

Early Stage Venture Capital Term Sheet Conversion 121

Austin Startup

AUGUST 1, 2017

The binary “get yacht-level rich or die trying” mindset is driven, first and foremost, by large institutional investors. Success for institutional VCs is driven not by absolute dollars returned, but by % returns on capital. If I put in $2MM and get out $10MM in a $50MM exit, that’s a solid 5x return.

Liquidation Preference 48

Liquidation Preference Common Stock Valuation Silicon Valley 48

VC Adventure

MAY 21, 2014

These people can become outside investors (we are still conversing with a few that may be interested in our Series A round). What the FG Angels Syndicate Wants to See: Closing an investment is just another form of closing a sale for your company.

Syndicate 93

Syndicate Syndication Technical Review Due Diligence 93

Bryce Dot VC

DECEMBER 4, 2012

That post sparked a series of conversations, both online and off, about what makes a pitch great and how to best use the time a founder secures with a potential investor. One point several commenters took issue with was my suggestion that founders ought to have a pitch deck prepared for their first meeting with an investor.

LP 60

LP Advisory Board Institutional Investors Security 60

Austin Startup

JUNE 4, 2017

Raise enough to get you 12–18 months and hit growth to get you into the larger institutional investors (or profitability if that’s your goal.) If you don’t treat the raise like a sales process by tracking it in a CRM you will definitely let potential investors fall through the cracks and you don’t deserve anybody’s money.

Austin 54

Austin Institutional Investors Angel Groups Deal Flow 54