This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
Many observers of the venture capital industry have questioned whether its best days are behind it. I have been close to the tech & startup sectors for more than 20 years and I can’t think of a period in which I felt more optimistic about the innovation and value creation I see in front of us.
But people are still begging for more technology or laws, often to protect them from themselves. Most of these are easy to avoid if you do your homework up front, but can cost you dearly if you get sucked in. No real investor or venture capital firm asks for money from the company they are intending to invest in.
So do you think the environment still tough for startups? Investors are very focused on diligence, on business models that make sense, and those companies that have a definite competitive advantage and defensibility to what they're doing. Mike Napoli: We've revised the way we review companies at the prescreening stage.
The press around the raise & company was fantastic and the promise of their technology – wireless charging that works as easily as WiFi – would positively affect many of our lives. uBeam’s tech does work and I have safely seen it demo’d in the real life many times. It can be one of the strongest motivators.
I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” Exec Summary: Most companies (98+%) in the world (even techstartups) should be very profit focused. One of them is profitability.
I’ve been having discussions with several people recently about the role of the CTO (Chief Technology Officer) in very early stage companies. In December 2007, I described how I commonly take on an Acting CTO Role in a Start-up. However, I’ve now begun questioning how and what an early-stage / startup CTO should be.
If you read this blog often you'll know that I'm a huge fan of First Round Capital. One example is that they introduced a program where their founders can pool together shares from their company and exchange them for a small portfolio of other First Round Capital companies. I'm a huge fan of this innovation. and Half.com. and Half.com.
As I’ve written about recently, at Upfront Ventures we started talking a couple of years ago about wanting to fund stuff with more meaning. The practical uses for uBeam technology is limitless. Did anybody hold patents that would prevent us from using this technology? We hired IP specialists to review prior art.
It’s the company that evokes fear into more startups and venture capitalists looking to fund eCommerce businesses than any other potential competitor. He would pick up stuff from your apartment and bring it to storage for you and he could save money by having that facility be off site. And could we then compete?”
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. In fact, far better if you haven’t raised venture capital. This is minutes 8-11.
On the third Wednesday of every month I co-chair a meeting called the SoCal VCA (venture capital alliance), which represents participants from all of the top venture capital firms in Southern California as well as prominent members of the Tech Coast Angels (TCA). We feature a prominent speaker at every event.
Over the past month a colleague ( Chang Xu ) and I sifted through data on the venture capital industry (as we do every year) and made a bunch of calls to VCs and LPs to confirm our hypotheses. As a result of the IPO window shifting we saw a massive inflow of public-market capital into the latest stages of venture.
It is also a result of pent-up demand. Consumer spending is 70% of the economy and will continue to be stretched – We can look all we want at tech innovation, VC funding cycles and hot M&A deals, but ultimately growth and therefore investment must be underpinned by revenue. See point 2 below.
I talk to roughly 2 or 3 new startups every week who need advice from an experienced CTO. Many of the founders of these companies are surprised to learn that I'm willing to review what they are doing (maybe an hour) and get on the phone for an hour with them and provide free advice. Do you have a Startup Founder Developer Gap ?
At our mid-year offsite our partnership at Upfront Ventures was discussing what the future of venture capital and the startup ecosystem looked like. First in late-stage tech companies and then it will filter back to Growth and then A and ultimately Seed Rounds. Please follow him & welcome him to Upfront!! <==
I talk to roughly 2 or 3 new startups every week who need advice from an experienced CTO. Many of the founders of these companies are surprised to learn that I'm willing to review what they are doing (maybe an hour) and get on the phone for an hour with them and provide free advice. Do you have a Startup Founder Developer Gap ?
I see many companies these days just race to raise capital. They see capital raising at the success validator. Shallow and superficial and racing from segment to segment in search of some take up has never been a strong strategic plan for me. LEAN STARTUP MOVEMENT. Product / market fit is everything.
I’m a very big proponent of the “lean startup movement&# as espoused by Steve Blank & Eric Ries. Nobody really knows whether or not the idea is yet going to be big, so I believe in not over capitalizing too early. I believe that over capitalizing companies too early often favors the VC. You have a hunch.
A few months ago we saw a CEO present who had personally made hundreds of millions of dollars in a financial services business and had a plan to capitalize on the current market conditions. We were super excited by their offering – they had patented technology in a field that we believe will continue to grow massively.
Andrew & Petri posed a question to me, “If Walt Disney were starting his company today, what kind of company would he build? They had all of their character development started (they showed up mock-ups) and the basic gameplay for Game 1 was through through (but not yet built).
When talking to startup founders or other innovators, we always ask questions to better understand their business as a core. Proving your Business Model Works - Build, Define, and Review But how do you prove your numbers? Start by building just enough of your product to get early CAC and CLV signals (they won’t be perfect).
Los Angeles-based CapLinked , the online service which helps startups manage their fundraising process, announced this morning that it has linked with half a dozen startup accelerators to help those firms' companies help raise their funding rounds. CapLinked is headed by Eric Jackson and Christopher Grey.
The data consistently confirms that: (i) venture capitalists are typically not adventuresome, and (ii) most startups lack the three intoxicating factors which cause venture capitalists to pull out their checkbooks. This concentration is partly due to natural causes – successful startups spawn other successful startups.
But VC is an “illiquid asset&# so funds didn’t disappear quickly - In 2000/01 the stock market quickly adjusted punishing investors in the NASDAQ and in individual public technology stocks. Many funds have not performed and will start to disappear. PEHub followed up their analysis with this. Think about the math.
Los Angeles-based CapLinked , which operates an online platform for managing fundraising by startups, has linked with the Startup America Partnership. According to CapLinked, it will make its premium capital raising and investor reporting tools available to the more than 8,500 startups enrolled with Startup America.
2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. This article originally appeared on TechCrunch. I acknowledged this in the article.
Companies that have leveraged technology to make the procurement and delivery of food more accessible to more people have been seeing a big surge of business this year, as millions of consumers are encouraged (or outright mandated, due to Covid-19) to socially distance or want to avoid the crowds of physical shopping and eating excursions.
I had a recent email dialog with the founder of a company looking for a CTO for their startup. Was it a Startup Founder Developer Gap ? Did they really need a Startup CTO or Developer or both? And do I fit as a Part-Time CTO , Technology Advisor , CTO Founder , Acting CTO ? Was it a case of needing Homework?
Even though the color of their money is always green, all startup investors are not the same. Struggling entrepreneurs are often so happy to get a funding offer that they neglect the recommended reverse duediligence on the investors. Personally visit another startup funded by this investor. It’s no fun for either side.
"I started the site when I was 19. "When you give everyone a voice and give people power, the system usually ends up in a really good place. " Creating and sustain a successful startups is beyond difficult. " I recently performed a 360-Review on two Co-Founders who were the company's CEO and CTO. ."
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. Periodically we do portfolio reviews to evaluate whether we have enough diversified risk across the fund.
All parties need to perform duediligence to ensure that the assumptions are correct, that neither partner has financial issues which could affect the partnership, and that the opposite partner has the skills to contribute to the partnership. Access to new technologies. Access to capital unavailable to either partner singly.
When the masses start all running one way without questioning “why?&# – and when it defies any logic I can figure out in my head – I call bullshit. They have marked-up paper gains propped up by an over excited venture capital market that has validated their investments. “ Question Authority.&#.
One startup that aims to help make the process simpler, cheaper and less stressful by helping people manage the home renovation process has raised $6 million to help it grow even faster. Construction techstartups are poised to shake up a $1.3-trillion-dollar trillion-dollar industry.
Chris Dixon is one of my favorite people in tech and writes one of the few blogs I read religiously. If you don’t read it and you care about tech & entrepreneurship, you should. If you like the quick summary notes, please check out Adam’s blog on tech, entrepreneurship & VC as a thank you.
Greycroft is Alan’s venture capital firm that recently raised its second fund ($130 million) with offices in both New York and LA. Get your product/market fit working before you ramp up your costs (or raise too much money). I’ve been to similar events with First Round Capital and True Ventures.
One of the vivid memories I have from being a startup CEO is the feeling that most people in your company have a look in their eyes that like they can do your job as well as you. But if you level up , raise capital and grow customers, revenue and staff – life changes. They review competitors offerings and analyst reports.
Nearly every successful techstartup I’ve observed over the past 20 years has gone through a similar growth pattern: Innovate, systematize then scale operations. Innovate In the early years of a startup there is a lot of kinetic energy of enthusiastic innovators looking to launch a product that changes how an industry works.
When you first start your company and raise initial venture capital your board probably consists of 1-3 founders and 1-2 VCs. Most experienced VCs won’t push you to give up founder control at this stage of the business nor should they. Reviewing financial & operational performance. As You Start to Mature.
This is part of my Startup Advice series. I had a picture in the office of my first company with the logo above and the capital letters JFDI. (In So I was surprised at the sheer volumes of decisions that had to be made when I became a startup CEO. The technology team disagrees on direction and wants resolutions.
Huge thank you to Steve De Long for the write up. How did you start blogging? “My In 2004 / 2005 I was starting to get intrigued with user-generated content. Yeah, that was when I changed for me…” “…there was so much positive feedback on demystifying this one element of venture capital. was starting.
I’m inspired by the enthusiasm of the young, emerging startup ecosystem that is here. Seattle should be the envy of any non Silicon Valley tech community in the country. As I gear up to give a keynote at the annual Seattle 2.0 As I gear up to give a keynote at the annual Seattle 2.0 I will start recruiting soon.
Let’s start with the fund. Santa Monica is the place where the highest concentration of early-stage startups are created if you consider also the contiguous geography of Venice Beach. What’s up with that? Well, the venture capital industry has changed a lot in the past 20 years … and we have too.
seems like an unlikely place to grow one of the next billion-dollar startups in the booming Los Angeles tech ecosystem. But it’s here in the (other) Valley’s southernmost edge that investors have found a startup they consider to be the next potential billion-dollar “unicorn” that will come out of Los Angeles.
We organize all of the trending information in your field so you don't have to. Join 5,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content