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.

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. In it, he looked at Venture Capital financing (total dollars and number of deals) on a per-capital basis. And Richard acknowledges this: “I’ll continue to track the evolving geography of start-ups and venture capital in future posts.

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Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? It’s like we need a finance 101 course for entrepreneurs. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. Plus, if you price it then when you go to your next round of financing there is no haggling with future investors on what the note should be priced at. This week.

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.

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. These are extreme positions and often the deals settle in between but it can be U-G-L-Y and the financings are at times coupled with changing management teams.

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.

The Rise of Chinese Venture Capital – (Part 3 of 5)

Steve Blank

This post is about the rise of Chinese venture capital and how it helped build the countries entrepreneurial ecosystem. The Rise of Chinese Venture Capital. SBIR and STTR programs, the Torch Program’s funding for new ventures was limited to seed funding the front end.

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.

Vyze Lands $13.1 Million in Venture Capital

SiliconHills

million in venture capital to accelerate its growth and expand into new markets. Austin Ventures with additional investment from Fathom Capital and Starvest Partners led the Series C financing round. Million in Venture Capital appeared first on SiliconHills. Vyze, a cloud-based financial technology company, has raised $13.1 The company, founded in 2008, has raised $48.1 million including the latest funding round. As part […].

OJO Labs Lands $5.8 Million in Venture Capital

SiliconHills

Austin-based LiveOak Venture Partners and Silverton Partners led the financing. Million in Venture Capital appeared first on SiliconHills. By LAURA LOREK Reporter with Silicon Hills News A new startup, OJO Labs just closed on $5.8 million in Series A funding from local investors. John Berkowitz, co-founder of Yodle and David Rubin, founder and former CEO of ProfitFuel founded OJO Labs in February of […] The post OJO Labs Lands $5.8

Myth Busters: Debunking Seven Conventional Wisdom Maxims of Venture Capital

Genuine VC

Compared to most other areas of finance, venture capital is practiced as more of an art, as opposed to a science. The art of venture capital also means that for entrepreneurs raising it, there isn’t one definitive playbook which can be used as a guide. MYTH: Venture capitalists are looking to replace founders with “their guys.” Even the most elementary venture capitalist has the privilege of serving on boards of a number of startups.

Continuous Financing

A VC : Venture Capital and Technology

We hate financings that go down like this and often choose to sit them out. I believe that entrepreneurs and investors should be engaged in a non-stop dating process that starts as early as possible and goes on continuously regardless if the entrepreneur is actually in the market for capital or not. This is why entrepreneurs can't ignore VCs until they are ready to raise capital. Venture Capital and Technology

Vietnam venture capital – potential unlocked

VC Cafe

Vietnam’s Ministry of Planning and Investment (MPI) has shared a circular (a regulatory document, in Vietnam speak) for improving the legal environment for venture capital investing in the Socialist state.

How To Attract Venture Capital In 5 Smart Steps

YFS Magazine

Venture capital funding is an elusive beast. Finance Grow investors money raising capital venture capitalSo, here's a look at 5 sure-fire ways to prime the pump and attract VC funding.

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. billion to work across 738 financing deals with U.S. To me, this indicates that venture capitalists (VCs) are looking for business, but not from first-time startups.

Disrupting Finance From Above: Wealthfront

abovethecrowd.com

Finance government stimulus Internet Payment Regulation Uncategorized Venture Capital Disruption payments wealthfront Many entrepreneurs in Silicon Valley believe that the financial services industry in the United States is “ripe for disruption. ”

Why Venture Capital No Longer Defines Innovation

ReadWriteStart

Today’s venture capital deal flow to innovative new companies looks a lot like a fat man trying to squeeze into a slim Italian suit. In 2000, venture capitalists poured a staggering $112.2 Today, venture capital deal flow has slowed to a relative trickle, just $28.4

The Singularity hits Venture Capital (Wilson/Kauffman Redux)

Fred Destin

I mean, really, who still wants to be a venture capitalist ? And then we have Fred Wilson telling us that should venture capital die, there's always be blogging. I an now expecting Chris Dixon to say he is turning to Venture Capital , and then I will be officially confused. The schizophreny of the venture capitalist. Venture partnerships need to collectively find winners and drive as much cash at reasonable valuations as they can into these stars.

The Truth about Venture Capital Financing

The Entrepreneurial Mind

You may have heard that venture capitalists invest in “A” teams even if they only have “C” ideas. Read my take here at a guest post I wrote for one of my colleague’s who edits a finance blog.

Discipline Returns to Venture Capital

Inc Startups

After a few years of frothiness, VCs are once again applying some basic discipline to startup financings. Technology

Growth Hacking Without Venture Capital

Software By Rob

The confusion arises because we fail to make a distinction between the growth strategies that are relevant to venture backed startups as opposed to the strategies that are relevant to bootstrapped startups. This article is a guest post from Bronson Taylor.

The State of Cleantech Venture Capital: What Lies Ahead

Secret Formula

In late 2011 I decided to write up an internal analysis I’d done at Venrock about the state of cleantech venture capital and make it available broadly. What’s happening to cleantech venture capital? Philanthropic capital.

Mentors, Revenue Based Financing, and Misperceptions About Venture Capital

Ask The VC

Fred Wilson (USV) has his normal MBA Mondays series with a guest post from Andy Sack titled Revenue Based Financing. It’s an advertorial for Andy’s firm Lighter Capital but is a really good explanation of how revenue based financing works. Charlie O’Donnell (First Round Capital) wraps up our posts of the day with a dynamite one titled 10 Misperceptions About Venture Capital.

Venture Capital Exit Times

Angel Blog

My two previous posts described how venture capital investors will want to invest too much and exit only for very high returns. Venture capital exit times extremely long - much longer than you probably realize.

Will Crowdfunding Crowd Out Venture Capital?

ReadWriteStart

Venture capitalists have been getting a black eye to go with their blue shirts. The next day, Fred Wilson, general partner at Union Square Ventures and prominent VC blogger , suggested that a flood of crowdfunding money unleashed by the JOBS Act could sweep away venture capitalists altogether.

Venture Capital and "Innovation"

Information Arbitrage

Many have recently been critical of the role of the venture industry in financing “true innovation.” This is not how the venture industry is supposed to operate.” When it comes to breakthroughs in long time-scale, massively capital intensive areas in the hard-sciences, e.g., battery technology and solar technology writ large, I’d posit that the right source of financing for this kind of innovation is either the Government or large corporations.

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.

Will Google Ventures Disrupt Venture Capital?

OnStartups

They’ve taken the classic venture capital playbook and out-executed just about everyone. Google Ventures , a co-investor alongside Sequoia in HubSpot’s series D, is one such firm. 6 Ways Google Ventures is Attempting to Disrupt the VC Industry.

Do venture capital firms or private equity funds offer debt financing for startups?

Gust

The direct answer to your question is NO, VC and PE funds do not provide debt financing for any companies. For venture capital, this is typically ten times the invested capital, and those returns can only be achieved through equity appreciation, not debt service. Invested Interests debt financing private equity funds startup VCs venture capital firms

Sizing Option Pools In Connection With Financings

A VC : Venture Capital and Technology

What I like to do, as I mentioned in the post I linked to, is agree with the entrepreneur that the option pool will have enough unissued options to fund all the hiring and retention grants that need to happen between the current financing and the next one. Then we'll do the same thing at the time of the next financing. If the financing is $1mm, it's not going to be that many. Venture Capital and Technology

How to Get into Venture Capital - An Update

This is going to be BIG.

About seven years ago, I wrote a post on breaking into venture capital and I continue to point the five or six people a week who ask me how to break into venture. The candidates for venture capital roles are already out there and usually in plain sight and there simply wasn''t anyone out there doing what Amrit was doing who wasn''t already fulltime at a firm. but in a city like New York, with it''s access to capital, "getting in" shouldn''t be the hard part.

Aunt Bertha Raises $5 Million in Venture Capital

SiliconHills

Aunt Bertha, a social services search and referral platform, announced it has raised $5 million in venture capital. Techstars Ventures led the Series B round of financing and as part of the deal, Jason Seats, partner at Techstars Ventures, will join the company’s board. “There’s a lot of unnecessary suffering going on for many Americans […] The post Aunt Bertha Raises $5 Million in Venture Capital appeared first on SiliconHills.

Why Venture Capital No Longer Defines Innovation

ReadWriteStart

Today’s venture capital deal flow to innovative new companies looks a lot like a fat man trying to squeeze into a slim Italian suit. In 2000, venture capitalists poured a staggering $112.2 Today, venture capital deal flow has slowed to a relative trickle, just $28.4

Venture Capital Access Program launches to aid women and diverse entrepreneurs

David Teten

We are in the midst of two great disruptions to American business: the internet’s ongoing disruption of most traditional industries: finance, healthcare, retail, finance, fashion, etc. VCAP© Addresses the Gap between Venture Capital and Funding for Women and Diverse Entrepreneurs.

The Venture Capital Secret: 3 Out of 4 Start-Ups Fail

online.wsj.com

SIGNIFICANCE PROMINENT. --> The Venture Capital Secret: 3 Out of 4 Start-Ups Fail. An entrepreneur with a hot technology and venture-capital funding becomes a billionaire in his 20s. But now there is evidence that venture-backed start-ups fail at far higher numbers than the rate the industry usually cites. About three-quarters of venture-backed firms in the U.S. backed by venture capitalists. Finance, Banking, Loans, etc. Capital Available.

The Glorious Post Seed Startup Financing Chaos

Fred Destin

FLAG, based on its own research, indicates an estimate of only 100 active full lifecycle venture firms in the US (there are over 800 on the NVCA website). Getting Seed does not mean you are on a long-term venture capital track.

How to Secure Funding for Your Startup (with INFOGRAPHIC)

Up and Running

Small Business Administration (SBA) may also be able to offer assistance through loan financing, bond guarantees or by helping you find venture capital. Why do so many businesses fail? According to a recent Forbes article , at the surface level, they simply run out of cash.

Raising Money From Investors? 5 Financing Mistakes to Avoid

YFS Magazine

Raising capital is a tough job, but when you’re prepared it can make all the difference in getting investors to sign on the dotted line. Finance Grow investors money raising capital venture capital

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. Or at least venture-style returns. Not to mention providing the capital for growth.

Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First

Both Sides of the Table

I know that the tone of the title and post will seem a bit aggressive for a post from a venture capitalist on fund raising. If you want to raise venture capital more easily the advice could be quite practical and counter-intuitive. Clean up your own shite.