Both Sides of the Table

SEPTEMBER 10, 2021

On the one hand, you’re over paying for every investment and valuations aren’t rational. What used to be an “A” round in 2011 is now routinely called a Seed round and this has been so engrained that founders would rather take less money than to have to put the words “A round” in their legal documents.

Venture Capital 471

Venture Capital Writing Invest Pricing 471

socalTECH

DECEMBER 1, 2017

Shervin Pishevar , the co-founder and chairman of Los Angeles-based Virgin Hyperloop One , has been accused of sexual misconduct by several women , according to a report from Bloomberg. Bloomberg said it has documented multiple occasions where Pishevar used the prospect of a job, mentorship, or investment to "make an unwanted sexual advance."

Los Angeles 113

Los Angeles Report Entrepreneur Invest 113

socalTECH

JUNE 24, 2010

Los Angeles-based CapLinked , an online startup developing software to help link entrepreneurs with their investors, has raised $350,000 in an equity investment round, according to a regulatory filing by the firm today. Tags: caplinked paypal mafia venture capital investment startup entrepreneur. READ MORE>>.

Venture Capital 243

Venture Capital Entrepreneur Equity Invest 243

Berkonomics

AUGUST 13, 2020

In fact, many angel investors or venture capitalists look for and respect the lessons learned by entrepreneurs that have survived a failed business. The key question is: Why did an entrepreneur fail? Most failed entrepreneurs blame undercapitalization for the cause of the failed business. Yes, it works both ways.

Startup 156

Startup Entrepreneur Venture Capital Course 156

socalTECH

FEBRUARY 3, 2010

We thought today for our interview, that we'd get an update on the angel investment environment here in Southern California from Scott Sangster , the incoming President of the Los Angeles Chapter of the Tech Coast Angels , the biggest angel investment group in Southern California.

Tech Coast Angels 182

Tech Coast Angels Technical Review Angel Southern California 182

Startup Professionals Musings

MAY 26, 2013

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. Many entrepreneurs believe all money is created equal. Not all shark angels are on the Shark Tank TV show. Litigious angels.

Angel 105

Angel Writing Startup Invest 105

Startup Professionals Musings

SEPTEMBER 24, 2014

Many new entrepreneurs are so excited by their latest idea that they can’t resist contacting every investor they know, assuming the investor will be equally excited and want to contribute immediately. Don’t send investors documents and notes that would be rejected by any high-school teacher.

Entrepreneur 119

Entrepreneur Technical Review Statistics Startup 119

Startup Professionals Musings

SEPTEMBER 12, 2021

As a startup mentor and investor, I am approached regularly by aspiring entrepreneurs who assert that business plans take too much time, are inaccurate, and rarely add value. The size of the document should be based on your style, but 10-20 pages or slides are usually more than adequate to outline even a complex business.

Technical Review 126

Technical Review Writing Entrepreneur Slides 126

Startup Professionals Musings

APRIL 18, 2021

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process. This is the last step of the process, where surprises in the evaluation of the management team, documentation, and personnel problems can derail the investment.

Technical Review 152

Technical Review Startup Satisfaction Summary 152

Startup Professionals Musings

DECEMBER 18, 2022

Many new entrepreneurs are so excited by their latest idea that they can’t resist contacting every investor they know, assuming the investor will be equally excited and want to contribute immediately. Don’t send investors documents and notes that would be rejected by any high-school teacher.

Technical Review 109

Technical Review Startup Statistics Social Media 109

Startup Professionals Musings

OCTOBER 29, 2022

These days, everyone wants to be an entrepreneur, pitching their latest and greatest new idea, and looking for someone to give them money. Angel investors, like me, have long figured out that asking to see the prototype is a quick way to separate the ‘wannabes’ from serious players. Quantify the implementation challenges.

Outsource Development 110

Outsource Development Ideas Tool Outsource 110

Startup Professionals Musings

DECEMBER 22, 2017

In my activities as an angel investor, and my work with new ventures seeking investment, I find the “due diligence” stage to be fraught with the most risk. Usually this stage only really starts after an investor has expressed serious interest, or already informally agreed to invest. Be prepared to follow-up as required.

Invest 59

Invest Startup Doc Slides 59

Berkonomics

APRIL 4, 2019

On the other side, entrepreneurs and CEO’s usually have a natural fear of giving too much information to us investors after the initial investment is received. Requirements created by investment documents. This could include the need for audited financials, monthly financial and narrative reporting and more.

Class 120

Class Course Report Competition 120

Startup Professionals Musings

DECEMBER 3, 2010

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. Many entrepreneurs believe all money is created equal. Litigious angels. Superior angels. Control freak angels. Tutorial angels.

Angel 97

Angel Writing Invest Startup 97

Startup Professionals Musings

JUNE 14, 2013

On a regular basis, I am approached by entrepreneurs who assert that business plans are a waste of time. They cite sources like a recent BusinessWeek story, “ Real Entrepreneurs Don’t Write Business Plans ” and this NY Times article. You need an investor, and want a document to mass-mail to everyone.

Entrepreneur 100

Entrepreneur Technical Review Writing Slides 100

Startup Professionals Musings

NOVEMBER 7, 2022

Make sure everyone comes with an entrepreneur mindset for real innovation. In my experience, team members with an entrepreneur mindset are rare in mature companies, due to a growing focus on low risk fixed processes, narrow job roles with specialized expertise, and long-term tenure. Entrepreneurs crave more ownership.

Incubator 143

Incubator Seed Funding Metrics Customer 143

Startup Professionals Musings

MAY 29, 2022

In the old days, every entrepreneur planned on taking their startup public, and making it big. Smart entrepreneurs are now starting to look at this option again, as well as the challenges of running a public company. Thus, there is tremendous pressure to increase current earnings, and little appetite for strategic investments.

Startup 98

Startup Report IBM IBM 98

Berkonomics

MARCH 17, 2018

Entrepreneurs blaming their board for failures of a fragile, early stage company. More important than the cost is the provision of investment documents from sophisticated investors like VC’s and sophisticated angels requiring D&O insurance for the company at the time of funding. Five times. Does that shock you?

Resource 243

Resource Email Services Entrepreneur 243

Startup Professionals Musings

APRIL 27, 2020

For some reason, too many aspiring entrepreneurs I know seem to focus on “actions” rather than “results.” These are not the entrepreneurs that I want to support, since I’m well aware that running a startup is far more complex, albeit more satisfying, than most conventional roles in established enterprises.

Product 123

Product Startup Tips Entrepreneur 123

Startup Professionals Musings

MARCH 21, 2020

Many new entrepreneurs are so excited by their latest idea that they can’t resist contacting every investor they know, assuming the investor will be equally excited and want to contribute immediately. Don’t send investors documents and notes that would be rejected by any high-school teacher.

Technical Review 124

Technical Review Statistics Startup Social Media 124

Startup Professionals Musings

FEBRUARY 2, 2020

These days, everyone wants to be an entrepreneur, pitching their latest and greatest new idea, and looking for someone to give them money. Angel investors, like me, have long figured out that asking to see the prototype is a quick way to separate the ‘wannabes’ from serious players. Quantify the implementation challenges.

Outsource Development 124

Outsource Development Ideas Tool Outsource 124

Both Sides of the Table

NOVEMBER 9, 2014

The trends are well understood: more angels, more seed funds, more crowdsourcing and so forth. Generally speaking in venture capital financings the legal documents will specify that only “major investors” (a threshold set in the agreement – which can be $500,000 investor or more). There is a reason for this.

Venture Capital 352

Venture Capital Seed Funding Email Blogging 352

socalTECH

AUGUST 20, 2018

For this morning's interview, we sat down with Marlon Nichols , co-founder and Managing Partner of Los Angeles-based Cross Culture Ventures (crossculturevc.com). Cross Culture's investments include Mayven, LendStreet, Wonderschool, and Fair, among many other investments. Talk about Cross Culture, what your investment areas are?

Venture Capital 100

Venture Capital Invest Capital Startup 100

Startup Professionals Musings

SEPTEMBER 30, 2013

I hear a lot of entrepreneurs contemplating their great “idea” for several years with little discernable progress, and looking for money to start. Here are some tips which will signal traction and fundability to investors, as well as to your team: Document your business plan. Show personal investment. Marty Zwilling.

Funding 112

Funding Entrepreneur Startup CTO Hire 112

Startup Professionals Musings

AUGUST 3, 2015

Most new entrepreneurs assume that great investors will find their startups based on the compelling solution the founders have created. As an angel investor, I believe this approach is a waste of time, since no honest investor is likely to seriously consider a request for money from a stranger. There are just too many scams.

Startup 101

Startup Keiretsu Entrepreneur Invest 101

Startup Professionals Musings

NOVEMBER 7, 2014

As a startup mentor and investor, I am approached regularly by aspiring entrepreneurs who assert that business plans are a waste of time. They cite sources like the BusinessWeek story, “ Real Entrepreneurs Don’t Write Business Plans ” and this Forbes article. You need an investor, and want a document to mass-mail to everyone.

Technical Review 109

Technical Review Writing Entrepreneur Slides 109

Berkonomics

NOVEMBER 4, 2016

Originally created in the mid 1990’s to help with the imprecise problem of how to value early stage companies, especially those in technology, I developed what soon became known as “The Berkus Method” when published in the popular book, “Winning Angels” by Harvard’s Amis and Stevenson with my permission in 2001.

Startup 120

Startup Examples Metrics Marketing 120

Startup Professionals Musings

AUGUST 31, 2019

In the old days, every entrepreneur dreamed of easily taking their startup public, and making it big. Smart entrepreneurs are just now starting to look at this option again, due to its unpredictability and the challenges of running a public company. Startups going public are laid open to competitors and critics.

Startup 84

Startup Technical Review Report IBM 84

Startup Professionals Musings

APRIL 22, 2010

Things that make it investment-grade for outside investors will also benefit you, since you are the ultimate investor. Many entrepreneurs scare away potential investors by claiming that their technology represents “truly disruptive technology.” Investors invest in people - not just ideas. Executive team.

Invest 74

Invest Tips Competition Metrics 74

SoCal CTO

APRIL 8, 2010

How do the sample Series Seed financing documents differ from typical Series A financing documents? Startup Company Lawyer , March 14, 2010 After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source” equity seed financing documents.

Startup 150

Startup Software Review Competition SoCal 150

Startup Professionals Musings

OCTOBER 30, 2017

Document the investment types you are willing to consider. Many aspiring entrepreneurs try to raise capital, without first understanding and complying with government and state rules for disclosure, securities registration, private offerings, and accredited investors. Also, it pays to be more creative with your investment offer.

Technical Review 88

Technical Review Equity Capital Entrepreneur 88

Startup Professionals Musings

NOVEMBER 8, 2015

Many new entrepreneurs are so excited by their latest idea that they can’t resist contacting every investor they know, assuming the investor will be equally excited and want to contribute immediately. Don’t send investors documents and notes that would be rejected by any high-school teacher.

Technical Review 109

Technical Review Entrepreneur Startup Statistics 109

Startup Professionals Musings

FEBRUARY 22, 2013

VCs and Angel investors like to see a startup that is running lean and mean, with no more than three or four of the conventional C-level or VP titles. This is a fancy title for a personnel manager in a large corporation who keeps track of all the hiring and firing, and has a staff to build job descriptions and personnel policy documents.

Startup 97

Startup Invest CTO Hire Cloud Computing 97

InfoChachkie

MARCH 5, 2012

In 1961, after 70-years, professional baseball created its first expansion teams – the Angels and Twins. So it’s a very early form of investment. If you use the mentor-driven model that we pioneered at TechStars, you get entrepreneurs who are deeply connected with the broader entrepreneurial landscape.

Startup 270

Startup Incubator Doc Mentor 270

Startup Professionals Musings

AUGUST 23, 2015

These days, everyone wants to be an entrepreneur, pitching their latest and greatest new idea, and looking for someone to give them money. Angel investors, like me, have long figured out that asking to see the prototype is a quick way to separate the ‘wannabes’ from serious players. Quantify the implementation challenges.

Ideas 107

Ideas Outsource Development Startup Tool 107

Startup Professionals Musings

JULY 26, 2013

If your startup is great enough to get a term sheet from angel investors or a venture capitalist, the next step for the investor is to complete the dreaded due diligence process. This is the last step of the process, where surprises in the evaluation of the management team, documentation, and personnel problems can derail the investment.

Technical Review 97

Technical Review Startup Satisfaction Summary 97

Startup Professionals Musings

SEPTEMBER 11, 2017

In the old days, every entrepreneur dreamed of easily taking their startup public, and making it big. Smart entrepreneurs are just now starting to look at this option again, due to its unpredictability and the challenges of running a public company. Startups going public are laid open to competitors and critics.

Startup 87

Startup Technical Review Report Entrepreneur 87