Entrepreneurial Density and Venture Capital

Feld Thoughts

Two of his latest articles talk about entrepreneurial density and venture capital. The Connection Between Venture Capital and Diverse, Dense Communities. For a long time I’ve suggested that an interesting measure of entrepreneurial density would be ((entrepreneurs + employees of startups) / total population). In it, he looked at Venture Capital financing (total dollars and number of deals) on a per-capital basis.

Hotshot Advice on Raising Venture Capital

Feld Thoughts

Entrepreneurs need to understand what’s involved – from what to consider when picking the right venture partner and how to think about the economic and control rights at stake, to what life will be like after the deal closes. Term Sheet hotshot jason mendelson venture deals video

Venture Capital is About Human Capital

Both Sides of the Table

Most VCs did well academically and had enough career success that a venture firm was willing to give them an investment role or they were able to raise their own fund. Fundamentally venture capital is about human capital. Venture Capital is a people business.

Pioneering Women in Venture Capital: Kathryn Gould

Steve Blank

Kathryn has been the founding VP of Marketing of Oracle , a successful recruiter, a world class Venture Capitalist, a co-founder of a Venture Capital firm, a great board member, one of my mentors and most importantly a wonderful friend. So I started Foundation Capital in 1995.

A Venture Capital History Perspective From Jack Tankersley

Feld Thoughts

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. The key reason for the explosion in capital flowing into the industry, and therefore the large increase in practitioners, had nothing to do with 1970’s performance, early stage investing, or technology. Continental Capital*. $ 250,000. KPC&B II. $ 775,000.

Something Ventured: The Founding of the Venture Capital Industry

Feld Thoughts

Last night Amy and I watched the movie Something Ventured: Risk, Reward, and the Original Venture Capitalists. I figured Amy would veto Something Ventured after 15 minutes. The entrepreneurs who were in the documentary were equally awesome.

Q316 State of Venture Capital Update With Cooley

Feld Thoughts

This quarter they interviewed me as part of it on Quarterly VC Update: Brad Feld on the State of Venture Capital Investing. At the same time, if you are a clearly successful growth company, there is a huge amount of capital available once you’ve reached a point of clear success (often after $20m – $40m has been raised). There is a huge capital supply gap for companies that are in between early startups and companies that are successful growth companies.

Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago. It’s like we need a finance 101 course for entrepreneurs. This week.

Why Was Winter in Venture Capital Funding so Short?

Both Sides of the Table

It was only a year ago that many in the Venture Capital industry were predicting that “winter was coming” and to be fair the author of this post was chief amongst them. While this it total FDI as opposed to just venture, it should give you an indication of the international trend.

Book: The Business of Venture Capital

Feld Thoughts

In the fall of 2010 Mahendra Ramsinghani reached out to me by email about a new book he was working on called The Business of Venture Capital: Insights from Leading Practitioners on the Art of Raising a Fund, Deal Structuring, Value Creation, and Exit Strategies. I was deep into writing Venture Deals: Be Smarter Than Your Lawyer and VC with one of my other partners – Jason Mendelson – and it was neat to see how Mahendra’s book complimented ours.

Venture Capital Investors Look Beyond Your Startup

Startup Professionals Musings

Obviously, a key factor is always the state of the economy and the mood of the venture capital community. On the other hand, venture capital doesn’t get smoothly spread across the geographic and demographic landscape, and the number of active venture capital firms has dropped sharply.

Venture Capital Funding: A Curated List of Our Best Resources

Up and Running

Getting venture capital funding to launch your business is incredibly difficult. In fact, fewer than 1 percent of businesses that start every year get venture funding. Is venture capital right for you? 12 of the Hottest Venture Capital Firms in 2016.

5 Ways Venture Capital Is Shaking Up The Tech Startup Landscape In Asia

YoungUpstarts

There is a thin line between success and failure for startups, and that is usually determined by capital. The more capital a startup has, the easier it is to get off the ground and ramp up growth. KPMG’s Venture Pulse Q3 2017 reported that the Asian market has raised $12.3

Changes in the Venture Capital Funding Environment

Both Sides of the Table

There was an explosion in number of startups both because it was cheap and there was tons of available capital. But there are two major trends worth understanding that most VCs know by now and I suspect most entrepreneurs do not. Be thoughtful about from whom you raise capital.

Why 2017 Should be a Great Year to Raise Venture Capital

Both Sides of the Table

Recently Upfront Ventures published its outlook for the technology startup world and venture capital overall titled it “ WTF Happened to Winter ?” venture-capital startup

Venture Capital Q&A Session

Both Sides of the Table

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about.

Venture Capital Demystified: A Fundraising Guide for Entrepreneurs, Investors, and Lawyers

YoungUpstarts

by Jason Mendelson and Brad Feld, co-authors of “ Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist “ So, you’ve got a brilliant idea and you’re ready to launch a company.

Venture Capital Superheroes

David Teten

We do have very significant follow-on capital to invest in Series A and later rounds as companies mature, at or above our pro rata.”. The good news is that we also see more exceptional entrepreneurs addressing big opportunities.” .

How To Attract Venture Capital For Your Startup

YoungUpstarts

Looking for some venture capital funding to fuel the growth of your startup? The process of attracting large dollar donors can be an intimidating one for entrepreneurs that are doing it for the first time. Others Funding startup advice venture capital

How To Grow A Company Without Venture Capital

YoungUpstarts

As an entrepreneur, though, you should look no further than Fab.com as a cautionary tale of venture capital. The Drawbacks of Venture Capital. Some companies and business models need venture capital to succeed, but the numbers prove that most don’t.

17 Venture Capital Blogs You Should Be Reading

Up and Running

Whether or not you’re raising money for your business, getting advice from venture capitalists can be invaluable. Inside the Minds of Top Venture Capitalists: Blogs You Need to Read to Understand How VCs Think. Andrew Parker is a VC with Spark Capital in Boston.

Will Your Startup Get Venture Capital or IPO in 2013?

Startup Professionals Musings

Based on the final report for 2012 from Thomson Reuters and the National Venture Capital Association (NVCA), it may appear that IPOs are back as a viable startup exit strategy. For the full year 2012, venture-backed initial public offerings raised $21.5

IPO 260

Venture Capital Funding and the Sexism You Can’t Quite Prove

Up and Running

At the outset, it is worth noting that when it comes to the world of venture funding, I am a bit of an outsider. Until a handful of years ago, I didn’t even know what venture capital was, let alone anything about the complicated process of actually acquiring VC funding.

It’s Morning in Venture Capital

Both Sides of the Table

Many observers of the venture capital industry have questioned whether its best days are behind it. The movie, “The Social Network” might have had more of an impact on creating future entrepreneurs than any other event of the past 5 years. This article originally ran on PEHub.

Why governments support venture capital

The Equity Kicker

Stephen Harper, Prime Minister of Canada, helpfully set out his government’s reasons for making this move: the local venture capital industry is not firing on all cylinders, especially since the credit crunch of 2008. talented entrepreneurs are going to the US to build their companies.

SlideShare: The Atomization of Seed Venture Capital

View from Seed

Recently, I shared a two-part essay on the atomization of seed venture capital rounds. We hope this helps clarify the current reality we’re seeing, while at the same time, empowering entrepreneurs to continue to think far beyond the seed stage as they grow meaningful companies. . The Atomization of Seed Venture Capital – NextView Ventures from NextView Ventures.

More Startups are Getting Less Venture Capital

Startup Professionals Musings

Startups and entrepreneurs need to be realists. You need to accept the fact that the down economy over the last couple of years has changed the way in which venture capitalists see the world, so you should adjust your strategy and expectations in dealing with them.

When, Where, and How to Raise Venture Capital

Startup Professionals Musings

By Dave Lavinsky, President and Co-Founder of Growthink At one point or another, most entrepreneurs find themselves in a place where they could use money. These entrepreneurs often dream about how much they could accomplish if they had millions in the bank.

This Week in Venture Capital – Episode 3

Both Sides of the Table

entrepreneur Wil Schroter (I am an angel investor in Affordit). Investors: Foundation Capital (lead), with existing investors: Morgenthaler Ventures, Norwest Venture Partners, Canaan Partners. Investors: True Ventures, Social Leverage (Howard Lindzon).

Why are some venture capital firms not funding women?

Gust

The facile answer to this assumptive question is “because some women are not seeking funding from venture capital firms” But there is actually quite a bit of truth in both statements. Women-led ventures definitely account for a smaller percentage of venture investments than do ventures led by men, but women-led ventures also account for a MUCH smaller percentage of ventures seeking funding in the first place!

How Venture Capital Firms Work, for Entrepreneurs and Startups

OnlyOnce

Business Entrepreneurship Startup Revolution Venture CapitalistsA couple of months ago, I was doing an internal lunch & learn for senior managers, and the topic came up as to “how do our VC firms work?”

Startups With Real Revenue Can Get Venture Capital

Startup Professionals Musings

I just read the Q1 2011 report from CB Insights , which shows venture capital is back. To me, this indicates that venture capitalists (VCs) are looking for business, but not from first-time startups. Back to VCs, Silicon Valley venture capital firms are still the most active.

Valuations 101: The Venture Capital Method

Gust

The Venture Capital Method (VC Method) was first described by Professor Bill Sahlman at Harvard Business School in 1987 in a case study and has been revised since. It is one of the useful methods for establishing the pre-money valuation of pre-revenue startup ventures. Most angels understand that half of new ventures fail and the best an investor can expect from nine of ten investments is return of capital for a portfolio of ten.

The disruption of venture capital

The Equity Kicker

Union Square Ventures partner Albert Wenger wrote a post yesterday about the disruption of venture capital which lists the changes afoot: Information about VCs on the internet. In the mid-1990s VCs began to have websites, but there were no good resources for entrepreneurs to find out about the venture capital process and learn about individual firms or partners.

6 Steps to Raising Venture Capital in 6 Months

Gust

To raise capital as a very early-stage business, you have to convince investors that your current size isn’t indicative of where you will be in the future. Recently, I met with an entrepreneur to discuss her financing strategy. Andrew Weinreich is a serial entrepreneur based in NYC.

Stephanie Spong – Venture Capital Executive Interview

Startup Professionals Musings

Last week at an angel investor forum I was privileged to meet Stephanie Spong, who is a Principal with EPIC Ventures, an increasingly rare early stage VC firm. Stephanie: I am a venture capitalist currently based out of Santa Fe, New Mexico, with EPIC Ventures.

10 Misperceptions About Venture Capital

This is going to be BIG.

Not every company raises venture capital—most don’t. Whenever I ask an entrepreneur to e-mail me, I can tell they’re feeling like I’m brushing them off. I get paid to do this and I absolutely want to engage with smart entrepreneurs. Sometimes the best conversations start out when an entrepreneur is in the process of trying to find out whether he should even get funding or not. Venture Capital & TechnologyTweet. 1) You need it.

Why I Look for High Conviction, not Consensus, in Venture Capital Decisions

Both Sides of the Table

One of the least understood parts of the venture capital industry and venture capital firms is how investment decisions actually get made. The beauty of venture capital is that on any given deal I can only lose one times my money.

The Thin Skin of the Venture Capital Market

This is going to be BIG.

The fact is, it''s just not cool to criticize the investing side of the venture capital market. For the most part, journalists give startups a free pass when venture capital money is raised or when companies that clearly seem to have failed get "acquired". The problem is that when new entrepreneurs read only one side of opinions on an investment, they fail to understand the legitimate criticisms of business models that are out there in the market.

Venture Capital Is Dead. Long Live Venture Capital.

Mucker Lab

The truth is that there is plenty of opportunity for a wide range of investors and entrepreneurs, and a healthy economy depends on diversity — in both the types of businesses and the capital they can access. (Guest post by my partner, Erik Rannala).

Reality, Comedy & Venture Capital

Start Up Blog

The problem today, is that most leaders, CEO’s and entrepreneurs don’t have a personal jester to keep them in tow. It’s also fair to say that the technology and Venture Capital realm could do with an injection of reality now and again.

Corporate Venture Capital: Obligatory or Oxymoron?

David Teten

She had so much insight to share that we broke the interview into two parts, 1) Corporate Venture Capital and more broadly, 2) How the Fortune 500 Can Buy, Invest and Partner with the Innovation Economy (coming soon). . Corporate venture funds are also investing earlier today.

Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

Yesterday I wrote Part 1 of the series on the changes to the software industry over the past decade that has led to changes in the venture capital industry itself. Surprisinly, this strategy works well with many entrepreneurs. Or at least venture-style returns.