Both Sides of the Table

JUNE 29, 2011

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. If you don’t want to read that post, the summary is: Open source computing drove computing costs down 90%, which spurred innovation in technology. Funny, that.

Venture Capital 296

Venture Capital Capital Software Startup 296

Startup Professionals Musings

AUGUST 5, 2023

One of the biggest myths I have found in the entrepreneur community is that every startup needs one or more outside investors for credibility and success, and perhaps is even entitled to at least one. Searching LinkedIn, for example, is a must for contemporary entrepreneurs. But don’t wait for them to contact you.

Statistics 98

Statistics Entrepreneur Funding Social Media 98

Both Sides of the Table

APRIL 23, 2011

I took the opportunity this past week to publish summary notes of some of the VCs and entrepreneurs I had interviewed on This Week in VC. One of my goals in doing the show was not only to educate entrepreneurs but also to put a human face on many of the VCs in our industry as VCs can be hard to get to know. Thank you. (if

Capital 265

Capital Venture Capital Veoh Startup 265

Startup Professionals Musings

FEBRUARY 3, 2011

Modern investors love to first read a two-page summary of your business plan, formatted like a glossy marketing collateral sheet, with text well laid out in columns and sidebars, and a couple of relevant graphics. You may have already found several articles, web pages, or books about writing the perfect executive summary.

Summary 90

Summary Writing Competition Sample 90

Both Sides of the Table

MAY 13, 2018

The most important advice I could give you before you set out in fund raising mode is to understand that fund-raising a sales & marketing process and needs to be managed. I always tell founders … “An investors job is to deploy capital and make a return. You can short-hand this as “engagement.” Why 8–10 and not just 3–4?

Venture Capital 332

Venture Capital Funding Startup Sales 332

Both Sides of the Table

SEPTEMBER 15, 2014

Venture Capital is a tricky industry. If you’re funding the same stuff as everybody else and if you started your activities when the clues were obvious you’re much less likely to drive enormous returns. When Fred Wilson funded Twitter I guarantee you it wasn’t obvious that it was a billion dollar idea.

Funding 362

Funding Technical Review Ideas Startup 362

Both Sides of the Table

JANUARY 16, 2012

There is all sorts of advice on the Internet about how to raise capital. I’ve raised money as a “hot company” and I’ve raised capital when no one would return my phone calls. I raised money as an entrepreneur, like you, in 1999, 2000, 2001, 2003 and 2005 for two different companies. Executive Summary.

Develop 366

Develop Development Funding Venture Capital 366

Both Sides of the Table

JULY 25, 2011

tl;dr version: If you’re an entrepreneur or VC or will be working in this industry - buy this. When I first started as a startup CEO in 1999 there were no guides on raising venture capital. – entrepreneurs never seem to focus on anything other than ownership percentage. This article originally ran on TechCrunch.

Venture Capital 304

Venture Capital Entrepreneur Guide Blogging 304

InfoChachkie

SEPTEMBER 4, 2012

Most sophisticated investors ignore them, focusing their attention on an entrepreneur's pitch and presentation materials, financial forecast and executive summary. As noted in Entrepreneurs Shouldn't Pitch Their Ideas To Venture Capitalists , most sophisticated investors place their bets on people rather than opportunities.

Venture Capital 211

Venture Capital Summary Technical Review Template 211

Both Sides of the Table

JULY 29, 2010

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. on the entrepreneur side of the table) when I raised at too high of a price.

Venture Capital 282

Venture Capital Capital Startup Pricing 282

Startup Professionals Musings

AUGUST 21, 2020

As a mentor to aspiring entrepreneurs, I often feel the frustration of someone trying to build a startup in the wrong place and time, and wrongly attributing their struggle to personal limitations. A commitment to constant learning will raise your intellectual capital. Human capital – talent, knowledge, skills, experience.

Resource 131

Resource Startup Capital Mentor 131

Startup Professionals Musings

SEPTEMBER 14, 2022

With the current volatile economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the side door as a reverse merger.

Funding 104

Funding Summary Entrepreneur Acquisition 104

Both Sides of the Table

AUGUST 29, 2016

GOAT just announced it raised $5 million in venture capital led by our friends at Matrix Partners. On the surface that sounds unremarkable — fundings happen daily. But this isn’t just any funding. That’s why this funding story is different. And here is Jason Del Rey’s announcement of the funding.

Venture Capital 199

Venture Capital Summary Writing Funding 199

Both Sides of the Table

MAY 28, 2018

He or she wants to know how long the money you will raise will last and whether this is long enough to warrant taking a risk on funding you. Are you raising an appropriate amount of capital relative to your progress, relative to your team size and relative to your needs? Yes, I see plans this pedestrian. This is a red flag for VCs.

Venture Capital 247

Venture Capital Capital Funding Demand 247

Both Sides of the Table

JUNE 28, 2018

My friend Michael Broukhim, founder & co-CEO of FabFitFun and I recently had a catch-up meeting for 3-miles on the Santa Monica “Bird Trail” No company has ever elicited so many questions by friends, colleagues, entrepreneurs, fellow VCs and journalists as has Bird, the company that pioneered the electronic scooter as a service market.

Santa Monica 256

Santa Monica Funding Startup Course 256

Both Sides of the Table

SEPTEMBER 12, 2010

“Hi [entrepreneur], I hope all is well. I’m an investor at [Big Name, Large Fund VC] and recently came across [Your Company]. I know the firm well and I know the entrepreneur & his business well. But if that’s all that they’re after then entrepreneurs should definitely be wary of taking these calls.

Venture Capital 294

Venture Capital Entrepreneur Email Equity 294

Startup Professionals Musings

FEBRUARY 11, 2010

Modern investors love to first read a two-page summary of your business plan, formatted like a glossy marketing collateral sheet, with text well laid out in columns and sidebars, and a couple of relevant graphics. You may have already found several articles, web pages, or books about writing the perfect executive summary.

Summary 55

Summary Writing Competition Metrics 55

Startup Professionals Musings

JULY 24, 2021

Every entrepreneur realizes that change is now the norm, and they have to adapt their business quickly to survive and prosper. In fact, the best entrepreneurs seem to see breakthrough changes coming even before they really happen, and are able to turn them into huge new opportunities. Technically, this is known as perceptual acuity.

Entrepreneur 173

Entrepreneur Summary Patents Examples 173

Both Sides of the Table

AUGUST 9, 2011

I thought about things I never had to as an entrepreneur: check size, ownership percentage, deal stage, portfolio construction and risk. Let’s help get their funding get finalized or the company sold if it’s already in play. tl;dr summary. And VCs scrambled to raise their own funds. Fundings boomed.

Marketing 305

Marketing Venture Capital Funding Technical Review 305

Startup Professionals Musings

MAY 6, 2023

Many entrepreneurs are so enamored with their product vision that they believe their own hype and are convinced that the market for their solution is so huge that no one will ask them for independent market research data. On the other hand, spending your entire startup budget on market research won’t improve your odds of success or funding.

Statistics 120

Statistics Research Report Newsletter 120

Both Sides of the Table

AUGUST 1, 2010

There has been much discussion about VCs doing seed funding in the past year. I’ve written about it myself (Is VC Seed Funding Dead?) and (Is There Really a Signaling Problem with VC Seed Funding?). Short summary of my posts: 1. Many firms do it in a way that can be more detrimental to entrepreneurs.

Seed Funding 298

Seed Funding Funding Venture Capital GRP Partners 298

Startup Professionals Musings

OCTOBER 19, 2010

Startups and entrepreneurs need to be realists. While the amounts were down, the number of startups that took slices of the pie went up by 9 percent (780 total), perhaps signaling that investors are trying to be more economical with their funds. Overall, venture capital investment fell in the United States last year but rose elsewhere.

Venture Capital 90

Venture Capital Capital Startup Summary 90

SoCal Tech Calendar

JUNE 5, 2019

At this San Diego Event, we will be showcasing some of the newest early-stage venture funds and angel groups in the San Diego area! As an additional benefit, entrepreneur 1/4 page summaries will be given to the investor speakers and attendees. All of the Investors will get your company description and contact info!

San Diego 100

San Diego Venture Capital Angel Summary 100

Both Sides of the Table

JUNE 30, 2016

I understand this instinct for more capital and I have two very different personal experiences: In my first company we raised an A-round of $16.5 I was always fond of saying about fund raising, “When the hor d’oeuvres tray is passed take two and put one in your pocket for later. I have this “How much should I raise?”

Startup 292

Startup Software Review Pricing Entrepreneur 292

Startup Professionals Musings

MARCH 9, 2015

Every entrepreneur realizes that change is now the norm, and they have to adapt their business quickly to survive and prosper. In fact, the best entrepreneurs seem to see breakthrough changes coming even before they really happen, and are able to turn them into huge new opportunities. Technically, this is known as perceptual acuity.

Entrepreneur 109

Entrepreneur Summary Patents Examples 109

Startup Professionals Musings

MAY 3, 2014

With the uptick in the economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. Thus I’m getting more questions on new mechanisms, like crowd funding, and an old one long out of favor, the so-called “reverse merger.”

Funding 98

Funding Startup Entrepreneur Summary 98

Both Sides of the Table

SEPTEMBER 1, 2016

Rolf Winkler wrote a piece in the WSJ about A16Z’s returns in which he says they “lag behind Sequoia, Benchmark and Founders Fund.” Scott Kupor of A16Z responded with a comprehensive overview of valuation methodology in a post that while accurate feels more targeted at sophisticated Limited Partners (LPs) who invest in funds.

Venture Capital 264

Venture Capital Invest Funding Competition 264

Startup Professionals Musings

OCTOBER 12, 2015

Every entrepreneur should do the same due diligence on a potential investor that smart investors do on their startups. Investors are human and subject to human tendencies, whether they are your rich uncle, an angel investor with personal funds or a venture capital investor with institutional money. Pretend investors.

Entrepreneur 108

Entrepreneur Coach Invest Sample 108

Both Sides of the Table

JULY 23, 2014

There has been much discussion in the past few years of the changing structure of the venture capital industry. The rise of “micro VCs” or seed-stage funds. The rise of alternative sources of capital (crowd funding and the like). ” Stated simply – if you seed funded Uber at $4.5m

Venture Capital 398

Venture Capital Technical Review Startup Seed Funding 398

Both Sides of the Table

AUGUST 14, 2009

Very few people fund individuals. In most cases if you can’t get a prototype done you’re probably not an entrepreneur. Professional angels / former entrepreneurs / seed funds – In Silicon Valley there are people like Ron Conway, Jeff Clavier, Mike Maples and many more. Team: You need a team.

Angel 291

Angel Funding Venture Capital Startup 291

Both Sides of the Table

JUNE 8, 2014

Cincinnati, like many startup communities in the US over the past 5 years, has revitalized important regions in its urban core, created accelerators, built co-working facilities, pooled together angel capital, attracted VCs, involved educational institutions and solicited the help of important corporations in a more cohesive ecosystem.

Startup 390

Startup Venture Capital Capital Funding 390

Startup Professionals Musings

DECEMBER 8, 2019

With the current strong economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. Thus I’m getting more questions on new mechanisms, like crowd funding, or going public through the side door as a reverse merger.

Summary 121

Summary Startup Entrepreneur Funding 121

Startup Professionals Musings

AUGUST 22, 2014

Many entrepreneurs are so enamored with their product vision that they believe their own hype, and are convinced that the market for their solution is so huge that no one will ask them for independent market-research data. On the other hand, spending your entire startup budget on market research won’t improve your odds of success or funding.

Marketing 97

Marketing Entrepreneur Statistics Research 97

Startup Professionals Musings

APRIL 24, 2022

The bad news is that it’s still a jungle fight for survival for entrepreneurs of all ages and demographics, with over 80 percent not having access to bank loans or venture capital. The best entrepreneurs work on making better time management a top objective. Treasure – Most entrepreneurs assume that treasure means funding.

Startup 112

Startup News Framework Outsource 112

Startup Professionals Musings

OCTOBER 23, 2021

Some investors seem to focus wholly on the strengths of the management team, or a sustainable competitive advantage, and in reality these are the core attributes for every funding equation. While these may be necessary for funding, they may not be sufficient to make your startup the great success embodied in your vision.

Education 151

Education Custom Customer Sales 151

Both Sides of the Table

DECEMBER 14, 2014

I had witnessed a number of early-stage tech startups in LA raise seed capital from the Bay Area and relocate. and I thought if we brought the community together for common purpose we could create more of a sense of community to help new entrepreneurs get funded, assemble teams, raise profiles and help with biz dev, product, etc.

Venture Capital 290

Venture Capital Startup Idealab Funding 290

Both Sides of the Table

OCTOBER 17, 2019

Just as I was getting the swing of things the world shifted beneath my feet and the stock market went into a free fall and venture capital all but shut down for nearly a year. We not only have our Series A funds that can write $500k?—?$15 15 million first checks but we also have three growth funds.

Venture Capital 223

Venture Capital IP Startup Google 223