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Want to Know How First Round Capital was Started?

Both Sides of the Table

As a courtesy if you enjoyed his write-up please check out his startup company, ChannelStack. He also says it is important to be able to participate in follow on rounds so as not to get “crammed down”. CEO Network – CEO’s from the portfolio companies are introduced to each other. They follow on when milestones are met.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

Through connections, or through a chance meeting at a networking or social event, an angel investor hears the entrepreneur's story, likes them and their technology, and on the spot, writes a check to provide the company with its first outside financing. And they hire very aggressive securities attorneys to represent their interests.

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The Biggest Threats to My Business

Rob Go

Getting Crammed Down. If a), you reduce the cram-down risk, but also reduce the fund’s upside because you own less of your portfolio companies to begin with. Sure, there is some brand benefit and network effect as you become known for investing in great companies. But those are short lived.

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Nobody Gets Consumer in Boston

Rob Go

Network effect businesses. Care.com is a classic network effects business. The more and better the caregivers in the network, but more valuable it is for consumers. This is counter-intuitive, but Boston startups I find are often too early. eCommerce. Connected Devices. Funny enough, all three are represented here.

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Are Investors Being Unreasonable? - Startups and angels: Along the.

Tim Keane

Startups and angels: Along the way to success. "  The problem has been that too-high valuations and too generous terms have spawned painful down rounds that squash the entrepreneur and his early investors.  Funding startups. Startup ideas. Resources for startups. « Whats Your Alternative?