article thumbnail

Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

Or if you’re a VC raising from LPs you have to list all of your deals, your investment value, your carrying value, your multiples, your IRRs, TVPIs, DPIs, etc along with net cashflows plus your previous LPAs. So what does a VC do when he or she isn’t ready to say “no” or perhaps might like to talk with you in a year but not now?

Funding 336
article thumbnail

Are Business Plans Still Necessary?

Both Sides of the Table

This is part of my ongoing series of posts and I need to file this one under both Raising Venture Capital and Startup Advice. I remember going to an Under the Radar conference in 2006 in the heat of the Web 2.0 Unfortunately this was reinforced by the many conferences that rushed to espouse the benefits of Web 2.0

Web 2.0 334
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How And Where To Connect To The Entrepreneur Universe

Startup Professionals Musings

Attend an investment conference. If you can meet the SEC “accredited investor” criteria ($1M net worth or $200K annual income), this is a great way to be seen by potential investors as peers before you need money. Join a local investment group. Don’t do cold calls or email blasts of your resume and business plan to potential investors.

article thumbnail

What Should You Do with Your Crappy Little Services Business?

Both Sides of the Table

This thinking is largely driven by the venture capital industry (and subsequently Wall Street) who are in search of high margin, highly scalable businesses. It’s nearly impossible to get a services company financed by VCs. Why Shouldn’t Most Services Businesses Raise VC? It may be the right answer for you.

Services 332
article thumbnail

How This Entrepreneur Raised $28,000 Using Airbnb to Fund Her Startup

Both Sides of the Table

She hasn’t raised any venture capital. It represents the great majority of entrepreneurship and eschews the fairytale rags-to-VC-riches stories we so often read about in the press. In one year of Airbnb Tracy netted more than $28,000. She did her first tech startup after the age of 30. That may soon change.

Startup 363
article thumbnail

What Everyone Should Take Away from Twitter’s 8% Staff Reductions

Both Sides of the Table

I spoke at Michael Kim’s excellent annual Cendana VC/LP conference today. One of the points I tried to make is that as venture capital investors as an industry we seem to have a healthy disdain for public market investors. ” It goes like this: What is your net burn rate? What is your cash balance?

article thumbnail

Do’s and Don’ts For Entrepreneur Business Networking

Startup Professionals Musings

Attend an investment conference. If you can meet the SEC “accredited investor” criteria ($1M net worth or $200K annual income), this is a great way to be seen by potential investors as peers before you need money. Join a local investment group. Don’t do cold calls or email blasts of your resume and business plan to potential investors.