Both Sides of the Table

SEPTEMBER 10, 2021

And the loosening of federal monetary policies, particularly in the US, has pushed more dollars into the venture ecosystems at every stage of financing. Technology solutions are now used by authoritarians to monitor and control populations, to stymie an individual company’s economic prospects or to foment chaos through demagoguery.

Venture Capital 471

Venture Capital Writing Invest Pricing 471

Berkonomics

OCTOBER 5, 2023

Fixed overhead for salaries, rent, equipment leases and more make up the majority of the “burn rate” (monthly expenses) for most companies. How about young or pre-revenue companies? We often accept that development schedules for young companies are almost always too optimistic. First, think about your time as money!

Venture Capital 296

Venture Capital Product Marketing Resource 296

Both Sides of the Table

JUNE 13, 2018

One of the hardest things to know when you’re new to fund raising is what you’re supposed to send to an investor, when and will they keep your information confidential. As a VC and former entrepreneur let me offer you some advice. This is part of a series on how to improve your fund raising game. The key is WHAT you send.

Venture Capital 261

Venture Capital Slides Email Startup 261

TechCrunch LA

MAY 31, 2022

Bonfire Ventures , a Los Angeles venture capital firm, invests in seed-stage business-to-business software companies and aims to change the odds so that more than the average 33% of companies in this sector make it to Series A. It says over 85% of its portfolio companies raise follow-on funding — a collective $1.15

Software 163

Software Startup Funding Venture Capital 163

Both Sides of the Table

MAY 23, 2012

Many observers of the venture capital industry have questioned whether its best days are behind it. I can’t help feel a bit of rear-view mirror analysis in all of “VC model is broken” bears in our industry. Cloud computing and the open source movements have brought down the costs of starting a company by more than 90%.

Venture Capital 347

Venture Capital Capital Technical Review Startup 347

Both Sides of the Table

DECEMBER 16, 2014

We’ve been dying to tell you all for a while that we had raised a new venture capital fund and of course given SEC filing requirements the story was somewhat already scooped by the always-in-the-know Dan Primack a few weeks ago. If you want to understand how the VC industry is changing there is a great primer in the link.

Venture Capital 396

Venture Capital Funding Technical Review Startup 396

Both Sides of the Table

OCTOBER 17, 2009

This is part of my ongoing series about Raising Venture Capital. A few years ago it became fashionable for large VC’s to do seed funding. Some larger VCs felt they were being “scooped&# by some younger, nimbler and smaller VCs. I was an early cynic. What gives? Am I a hypocrite?

Seed Funding 283

Seed Funding Venture Capital Funding Software Review 283

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. These trends have put pressure on traditional VCs. These trends have put pressure on traditional VCs. This led to an explosion in startups. Funny, that.

Venture Capital 296

Venture Capital Capital Software Startup 296

Both Sides of the Table

FEBRUARY 12, 2019

Seed investments are down by any measure (funds, deals, dollars) over the past 3 years in deals < $1 million AND in deals between $1–5 million. 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.

Venture Capital 328

Venture Capital Invest Seed Funding Startup 328

Startup Professionals Musings

OCTOBER 17, 2022

Venture capitalists (VCs) have long been seen as the top of the pyramid for startup funding sources, but in fact angel investors now fund over twice as many companies, according to a classic Crunchbase article. The large investment amounts preferred by VCs are no longer needed to launch winners.

Guide 136

Guide Venture Capital Funding Class 136

Both Sides of the Table

OCTOBER 17, 2019

I became a VC 12 years ago in 2007 when the pace of deals was much slower. As I was trying to figure out the role I wanted to play in the VC world I decided I wanted to focus on businesses that were building deeply technical products to solve problems for business users. We not only have our Series A funds that can write $500k?—?$15

Venture Capital 223

Venture Capital IP Startup Google 223

socalTECH

JANUARY 22, 2019

This morning's interview is with Kevin O'Connor , a longtime investor and serial entrepreneur, who is now running venture capital investment firm ScOp Venture Capital. Congrats on the new name for your venture capital firm. What types of companies are you making investments in?

Venture Capital 145

Venture Capital Startup Invest Capital 145

Berkonomics

AUGUST 3, 2023

How important is this issue for your business? The subject of raising money is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally generated funds.

Venture Capital 295

Venture Capital Startup Class Invest 295

Both Sides of the Table

SEPTEMBER 28, 2014

I love how transparently Danielle lives her startup (& encourages other to join in) because it provides much needed transparency to other startups. But what IS the right amount of burn for a company? Burn rate in case you don’t know is the amount of money a company is either spending (gross) or losing (net) per month. (it

Startup 383

Startup Company Companies .Net 383

Berkonomics

JULY 23, 2020

How about outside investors? Sometimes the end game or sale of the company is not a happy event. Especially when outside investors, venture capitalists, or angels, have put in substantial money and the sales price is less than the value of their investment. There are some questions a distressed sale brings to mind.

Company 156

Company Companies Sales Venture Capital 156

Both Sides of the Table

OCTOBER 1, 2009

In the first post in this three part series I described why I believe the VC market froze between September 2008 – April 2009. It affects even B2B companies because ultimately most must sell to companies who sell to consumers and if they suffer they cut back on suppliers. It is also a result of pent-up demand.

Venture Capital 269

Venture Capital Startup Funding Technical Review 269

Both Sides of the Table

NOVEMBER 8, 2011

We have significant VC commitments (listed below) – every entering company will get $50,000 in funding, mentorship from top VCs and successful entrepreneurs plus free office space. For any company interested in applying please visit the website. To show these companies that they can remain in LA.

Venture Capital 287

Venture Capital Funding Startup GRP Partners 287

Both Sides of the Table

APRIL 23, 2017

You have cash in the bank, a monthly burn rate and a “cash out” date that few in the company truly comprehend. As the end date nears and the cash-out date becomes more predictable the pressure mounts and every decisions becomes more consequential. Fund raising is hard for everybody.

Funding 238

Funding Venture Capital Startup Course 238

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.

Develop 366

Develop Development Funding Venture Capital 366

Both Sides of the Table

SEPTEMBER 26, 2015

One of the least understood parts of the venture capital industry and venture capital firms is how investment decisions actually get made. The truth is that each firm is different and there isn’t one standard but over the years I’ve talked with enough of my peers to get sense of how many firms work.

Venture Capital 150

Venture Capital Capital Startup Invest 150

Both Sides of the Table

OCTOBER 26, 2020

Today we’re announcing that my partner Kara Nortman is becoming Co-Managing Partner at Upfront Ventures and I can’t tell you how thrilled I am to welcome her to her new role. I’ve become fond of saying “if I had a dollar for every person who told me just how much they loooooved Kara Nortman, I’d have a 10x fund.”

Venture Capital 361

Venture Capital Startup Invest CitySearch 361

Both Sides of the Table

JANUARY 3, 2016

In the VC insider baseball world a discussion has gone on about “VC platforms” over the past 5 or so years. While firms define platforms differently, let’s just say they are the services that a VC offers outside of investment capital and partner time on boards or providing intros.

Venture Capital 150

Venture Capital Platform Startup Resource 150

Berkonomics

JANUARY 25, 2024

Everyone, even seasoned CEO’s can use a good coach who knows how to bring out the best in a person, is knowledgeable about the business process, and who has an extended list of relationships to call upon to fill needs that become obvious in the coaching process. Business coaches come in all sizes and shapes.

Coach 156

Coach Organization Resource Equity 156

Both Sides of the Table

JUNE 5, 2015

” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. I can boil it down to how this tension plays out. In the old days VCs funded off of a “pre-money” valuation.

Venture Capital 150

Venture Capital Pricing Startup Invest 150

Startup Professionals Musings

JANUARY 19, 2020

Venture capitalists (VCs) have long been seen as the top of the pyramid for startup funding sources, but in fact angel investors now fund over twice as many companies, according the Crunchbase. The large investment amounts preferred by VCs are no longer needed to launch winners.

Funding 125

Funding Venture Capital Startup Class 125

Both Sides of the Table

FEBRUARY 1, 2015

*. What is the role of a VC for entrepreneurs? I suppose it can be different for every founder and for different VCs but I’d like to offer you some context on what I think it is and it isn’t. I was recently contacted by an entrepreneur who was consider a few different business models for his company.

Venture Capital 150

Venture Capital Course Guide Entrepreneur 150

InfoChachkie

MAY 22, 2012

The steps outlined below represent an ideal approach to raising capital from sophisticated investors. The steps outlined below represent an ideal approach to raising capital from sophisticated investors. You might be at Step 2 with one VC and Step 3 with another. I wish that was true. It’s not.” Prep Steps.

Venture Capital 236

Venture Capital Capital Research Custom 236

Both Sides of the Table

JANUARY 13, 2011

I recently filmed a show for This Week in Venture Capital in which I talked about how to prepare for a VC meeting: whom you’ll meet, who should attend from your side, what materials you should bring and how you should run the meeting. I funded them 8 weeks later. I’m sure there are many more.

Venture Capital 299

Venture Capital Slides Technical Advisors Startup 299

Both Sides of the Table

JULY 16, 2010

Lots of discussion these days about the changes in the VC industry. The VC industry grew dramatically as a result of the Internet bubble - Before the Internet bubble the people who invested in VC funds (called LPs or Limited Partners) put about $50 billion into the industry and by 2001 this had grown precipitously to around $250 billion.

Venture Capital 311

Venture Capital Startup Seed Funding Rustic Canyon 311

Both Sides of the Table

NOVEMBER 13, 2014

After years of trying to persuade Kara Nortman to become a partner at Upfront Ventures I can officially announce now that she’s joined us effective immediately. Investment experience (5 years a VC at Battery Ventures). Let me start with the news that I’m excited to share with you. billion).

Venture Capital 408

Venture Capital Startup Outsource Development CitySearch 408

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

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?). There is a structural reason that VCs are investing at early stages, 2.

Seed Funding 298

Seed Funding Funding Venture Capital GRP Partners 298

Both Sides of the Table

JANUARY 8, 2014

And there’s none that makes me happier than to announce that Jordan Hudson has been promoted to a Principal at Upfront Ventures. What is a principal at a VC firm and how does it work at Upfront Ventures? ” Associates have different functions at different VCs. Portfolio company support & analysis.

Help 365

Help Invest Venture Capital Technical Review 365

Both Sides of the Table

MAY 4, 2010

Had a great chat with Jim Armstrong who is a General Partner at Clearstone Venture Partners today on TWiVC. It was especially fun for me because we got the chance to talk about the VC industry and how entrepreneurs should think about the VC industry in addition to discussing deals. I think you’ll enjoy watching.

Clearstone 236

Clearstone Venture Capital ReachLocal Google 236

Both Sides of the Table

OCTOBER 12, 2014

These tensions seep out in some angels or seed funds publicly or semi-privately deriding later-stage VCs for their “bad” behavior. Prorata investments rights given investors the right to invest in your future fund-raising rounds and maintain their ownership % in your company as your company grows and raises more capital.

Guide 336

Guide Venture Capital Startup Writing 336

Both Sides of the Table

NOVEMBER 9, 2014

We all know that funding markets have changed for startups. The trends are well understood: more angels, more seed funds, more crowdsourcing and so forth. How founders get screwed on convertible notes. How party rounds can burn you if it takes time to find your groove. There is a reason for this.

Venture Capital 352

Venture Capital Seed Funding Email Blogging 352

Both Sides of the Table

FEBRUARY 14, 2018

The idea is simple enough: several female VC partners at top funds will hold 1-hour meetings with 40 promising female entrepreneurs looking to get advice on their business and pitch in a friendly, non-judgmental, safe environment. LA Female Office Hours. So why is this initiative so important for men, women and other gender identities?

Venture Capital 256

Venture Capital Examples Screening Help 256