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Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? There were no metrics. Him: On metrics. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. “But lawyers will charge much more for equity.” Try doing THAT with equity. Me: With a cap?

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Praying to the God of Valuation

Both Sides of the Table

Something happened in the past 7 years in the startup and venture capital world that I hadn’t experienced since the late 90’s — we all began praying to the God of Valuation. How might our next phase of the journey seem brighter, even with more uncertain days for startups and capital markets? They were a way to gather cheap capital.

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10 Steps To Second Stage Success For Your New Venture

Startup Professionals Musings

I like the ten steps he outlines, which I characterize here as follows: Seek major capital infusion. They need a large infusion from venture capitalists, private equity, bank loans, or mezzanine financing. Managing business growth is more than metrics. Most entrepreneurs are mavericks, and their passion drove their new business.

Sales 147
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The Changing Venture Landscape

Both Sides of the Table

how on Earth could the venture capital market stand still? One of the most common questions I’m asked by people intrigued by but also scared by venture capital and technology markets is some variant of, “Aren’t technology markets way overvalued? Capital is a lot less patient at scale. Of course we can’t. dot-com bonanza.

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5 Risk Reduction Strategies For Your Next New Venture

Startup Professionals Musings

Capitalize on the lessons from early adopters and competitors. Smart startups save cost and time by capitalizing on the pivots of others before them. Most equity investors tend to avoid truly disruptive technology startups, since they take longer and more money to scale.

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5 Keys To Reducing Startup Risk By Building On Trends

Startup Professionals Musings

Capitalize on the lessons from early adopters and competitors. Smart startups save cost and time by capitalizing on the pivots of others before them. Most equity investors tend to avoid truly disruptive technology startups, since they take longer and more money to scale.

Startup 157
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7 Keys To Scaling Your Startup To Be The Next Unicorn

Startup Professionals Musings

In my experience, here are some of the key elements of that “second-stage” of entrepreneurship: Move from small investors to major venture capital. Of course, that means a mindset willing to give up much more equity, and taking on a whole new level of risk. Switch your focus from product development to sales.

Startup 151