Berkonomics

AUGUST 4, 2022

In my early journalism classes, I was taught the five “W’s” of good news stories, and that most should be in the first paragraph at that. Remember the five “W’s?”. Who, what, when, where and why are the five, with sometimes a “how” thrown in for those followers of the macabre. Which of the five is most important for you?

Journal 156

Journal Acquisition Class News 156

Berkonomics

JANUARY 7, 2021

How many of them, particularly in technology, were able to start a company, supply all the funding, and share no management tasks or equity with others, and still grow the company to any significant size, worthy of a multi-million-dollar opportunity to cash out at exit? Nearly none, if statistics and experience are key to the answer.

Startup 240

Startup Equity Statistics Entrepreneur 240

Berkonomics

NOVEMBER 27, 2020

Investors have to look behind the plan and at the entrepreneur and his or her team, knowing that, over time, most of us have come to the conclusion that it is the execution of the ever-changing plan, not the plan itself that makes a company a success. Tyson’s insight into the realities of the market. Tyson’s statement also addresses change.

Summary 156

Summary Metrics Class Email 156

Berkonomics

MAY 9, 2024

Conversely, a fast-growing industry lifts most all good participants, making excellent companies excel even more and grow even faster, like a small plane flying at 150 knots with a 75-knot tailwind. Email readers, continue here…] Have you created high barriers to entry? Do you have a world-class management team?

Patents 156

Patents Pricing Ideas Marketing 156

Berkonomics

OCTOBER 18, 2018

And it is that disconnected employee, usually one or more of the better performers, that starts looking for a job when times look bad for a company. Email readers, continue here…] Sometimes a secondary fund-raising effort leads to a lower valuation than the last. Investor loyalty is most tenuous of all.

Layoffs 240

Layoffs Class News Email 240

Berkonomics

JUNE 15, 2017

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. So be aware that professional investors are in your company for the eventual large profits at the liquidity event.

Venture Capital 243

Venture Capital Sales Invest Class 243

Berkonomics

JUNE 22, 2023

Conversely, a fast-growing industry lifts most all good participants, making excellent companies excel even more and grow even faster, like a small plane flying at 150 knots with a 75-knot tailwind. Email readers, continue here…] Have you created high barriers to entry? Do you have a world-class management team?

Patents 286

Patents Pricing Ideas Marketing 286

Berkonomics

JANUARY 6, 2022

First, the marginal exit event: Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Promissory notes come before any equity, and most late equity investments come before early equity investments, even of the same class of security.

Venture Capital 156

Venture Capital Sales Pricing Equity 156

Berkonomics

APRIL 1, 2021

My favorite example of a world class pivot comes from the CEO and board of one of my most successful investments. And it built a billion-dollar market and then some – where the original vision and plan might have restricted the then-small company to a tiny percentage of that. My story of a great pivot.

Resource 156

Resource Research Class News 156

Berkonomics

APRIL 12, 2018

Small companies most often scrape by with borrowed or invested funds, doing everything possible to grow and prosper with limited resources. So, it is like a punch in the gut when an employee makes a claim against the company for a perceived or actual but unintentional violation of a law or regulation. So, my advice is simple.

Entrepreneur 226

Entrepreneur Class Resource Email 226

Berkonomics

JUNE 8, 2017

Email readers, continue here…] Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally-generated funds. Strategic partner” investors: If you can find a strategic partner willing to invest in your enterprise, consider it a blessing.

Venture Capital 266

Venture Capital Class Invest Equity 266

Berkonomics

APRIL 4, 2019

Every investor wants regular information from companies taking their money. And most of us investors are frustrated by the lack of regular communication – unless of course – the company needs more money. First, let’s cover the absolute minimum legal requirement a company must provide to its investors.

Class 120

Class Course Report Competition 120

Berkonomics

FEBRUARY 20, 2014

Investors have to look behind the plan and at the entrepreneur and his or her team, knowing that, over time, most of us have come to the conclusion that it is the execution of the ever-changing plan, not the plan itself that makes a company a success. Email readers, continue here.] Tyson’s statement also addresses change.

Startup 245

Startup Summary Metrics Class 245

Berkonomics

MAY 27, 2021

If you take money from knowledgeable investors, you will be required to create a board as a part of the investment process. They protect the company by overseeing the expenditure of company money for expansion, acquisitions, purchases of large assets, hiring of senior management and more. So, why go through the effort?

Resource 156

Resource Acquisition Class Help 156

Berkonomics

JULY 5, 2018

Most businesses fall into the class of those that can be sold someday to a willing buyer. Email readers, continue here…] All businesses and their management should be aware and perhaps planning for the end game, and that includes boards of directors as well. Is your business one that may be sold for profit someday?

Class 226

Class Email Competition Entrepreneur 226

Berkonomics

FEBRUARY 14, 2019

My answer always varies as I examine each deal, sometimes deferring and passing on an investment because of an uneasy feeling about the entrepreneur, even if the business plan seems able to capture the market. And great management can morph a company to adopt without destroying the culture of the company in the process.

Venture Capital 120

Venture Capital Entrepreneur Ideas Summary 120

Berkonomics

FEBRUARY 14, 2019

My answer always varies as I examine each deal, sometimes deferring and passing on an investment because of an uneasy feeling about the entrepreneur, even if the business plan seems able to capture the market. And great management can morph a company to adopt without destroying the culture of the company in the process.

Venture Capital 120

Venture Capital Entrepreneur Ideas Summary 120

Berkonomics

JULY 7, 2016

In my early journalism classes, I was taught the five “W’s” of good news stories, and that most should be in the first paragraph at that. Who, what, when, where and why are the five, with sometimes a “how” thrown in for those followers of the macabre. I’ve recently experienced an example of this.

Journal 136

Journal Acquisition Class News 136

Berkonomics

APRIL 6, 2012

Sooner or later these businesses will have to seek venture capital and accommodate the needs of the venture community in negotiating the terms of an investment. First, VC’s in general cannot invest in ‘S’ corporations or limited liability companies (LLC’s). Email readers, continue here.]

Venture Capital 198

Venture Capital Invest Pricing Class 198

Berkonomics

JUNE 12, 2014

It is rare when one person starts a company, supplies all the funding, and shares no management tasks or equity with others, and still grows the company to any significant size, worthy of a multi-million dollar opportunity to cash out at exit. Email readers, continue here.] Think of it as the rule of the thirds.

Startup 214

Startup Equity Invest Class 214

Berkonomics

APRIL 14, 2012

There is a natural fear of giving too much information to investors after the initial investment is received. First, let’s cover the absolute minimum legal requirement a company has to provide to its investors. Email readers, continue here.]

Class 202

Class Report Competition .Net 202

Berkonomics

SEPTEMBER 18, 2014

My favorite example of a world class pivot comes from the CEO and board of one of my most successful investments. And we who held early stock celebrated together the ringing of the NYSE opening bell the day that often pivoting company went public. Finding your ideal niche Positioning'

Class 176

Class Resource Email Examples 176

Berkonomics

APRIL 28, 2016

Several years ago, I wrote an extensive article on the ten most important tests of a company in classifying a person as an independent contractor. But things have gotten much more complicated lately, partly because of the Uber, Lyft and other new generation of workers and the best description of their class as “semi–independent.”.

Class 120

Class Training Email Tool 120

socalTECH

DECEMBER 26, 2019

Every year, at the end of the year, we share some reflections on the past year from our readers, entrepreneurs, venture capitalists, sponsors, and others in the local technology community. What was the biggest news for you/your company this year? We'll be featuring contributions all through the holiday season.

Southern California 100

Southern California News Platform Class 100

Berkonomics

SEPTEMBER 6, 2010

Even venture capitalists who sit on boards where they have significant investments often forget this point. They write into their investment documents that they will occupy a seat on the board for as long as they are invested in the company, thinking of this as a protection for their investment and tool for them to influence growth.

Class 179

Class Coach Invest Sales 179

socalTECH

JUNE 20, 2012

For readers, LaunchpadLA is all about? For two years, it was a mentorship program, that worked with twenty three different companies, but did not have a fund, did not have an office, and didn't take any equity. Then, it turned out, all of those companies did really well. Our current class has performed incredibly well.

Class 261

Class Mentor Startup Santa Monica 261

Berkonomics

APRIL 13, 2017

Conversely, a fast-growing industry lifts most all good participants, making excellent companies excel even more and grow even faster, like a small plane flying at 150 knots with a 75-knot tailwind. Email readers, continue here…] Can you dominate that market? Do you have a world-class management team?

Patents 291

Patents Pricing Ideas Marketing 291

Berkonomics

OCTOBER 1, 2015

Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Promissory notes come before any equity, and most late equity investments come before early equity investments, even of the same class of security.

Angel 120

Angel Sales Pricing Equity 120

Berkonomics

JUNE 17, 2011

Most businesses fall into the class of those that can be sold someday to a willing buyer. Email readers continue here.] Investments into the company, whether from new money or reinvesting profits, should be directed first into areas that will increase the value of the enterprise at the end game. And I’d go further.

Equity 209

Equity Class Email Competition 209

socalTECH

NOVEMBER 19, 2015

We've attempted to do that for the last three years, trying to ferret out exactly who the people--not companies--are to watch in the region's technology industry. Here are this year's winners, along with the companies they are associated with: Brett Bouttier , AwesomenessTV. Joe Huff and Bridget Hilton , LSTN Sound Company.

SoCalTech 100

SoCalTech Lootcrate Southern California Snapchat 100

Berkonomics

JANUARY 27, 2010

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. So be aware that professional investors are in your company for the eventual large profits at the liquidity event.

Venture Capital 168

Venture Capital Sales Invest Class 168

Berkonomics

JANUARY 20, 2010

Email readers continue here.]. Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally-generated funds. Better yet, the valuation of your enterprise is often higher than if the same investment were taken from a professional investor.

Venture Capital 174

Venture Capital Invest Class Entrepreneur 174

Both Sides of the Table

JULY 25, 2010

I recently read a book I’d highly recommend to every reader of this blog called “ Yes, 50 Scientifically Proven Ways to be Persuasive &# by Robert B. Rincon is part of the new breed of Seed Stage VCs and with the leadership of Jim Andelman has charted out the most authentic early-stage investment strategy in Southern California.

Guide 293

Guide Funding Venture Capital Technical Review 293

Both Sides of the Table

JANUARY 14, 2014

It’s why the first company I ever invested in as a VC – Invoca – just announced a $20 million funding by Accel Partners. It’s why opt-in marketing databases can be so incredibly valuable for companies like Gilt Groupe, One King’s Lane and AdoreMe. Much more data in the full post. PHONE CALLS.

Email 339

Email SaaS Venture Capital Google 339

Berkonomics

NOVEMBER 23, 2023

Here is the warning: The execution of equity allocations and of a good incentive program using equity is often mismanaged, damaging the corporate capitalization structure and even affecting the outcome of subsequent investment into the company. … How about multiple classes of stock?

Equity 156

Equity Class Pricing Sales 156

Berkonomics

FEBRUARY 14, 2011

There are four basic ways to increase the cash position of a company: inject cash through borrowing or investment, decrease spending or payments on debt, increase efficiency of operations, and increase revenues or advance payments from customers. Email readers continue here.] We have discussed why never to run out of cash.

Services 159

Services Statistics Startup .Net 159

Berkonomics

DECEMBER 17, 2020

Here is a class of investor we’ve covered before, one usually focused upon you and less upon your business case. We’ve worried together about the moral obligation implicit in taking such investments from people so close, even with their promise never to expect a return. Angel investment groups or funds.

Equity 156

Equity Technical Review Class Organization 156