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Why Has LA Suddenly Gotten So Much Attention from VCs and Entrepreneurs?

Both Sides of the Table

Over the past 4 years LA’s tech fundings have growing at a 30% compounded annual growth rate (CAGR) which is > 4 times the US average VC CAGR (7%). billion 2013 figure) have been massive financings at Honest Company ($70mm), JustFab ($85mm), ZipRecruiter ($63mm) and lord only knows how much SnapChat has actually accumulated.

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Who Should be on Your Startup Board?

Both Sides of the Table

Why you should set up a board at the seed round of funding I know these days with SAFE documents and rolling convertible notes many founders prefer not to set up a board early on. How does control start to change at the B-round of funding? The Limited Partners (LPs) who back funds don’t expect their dollars to be passive.

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Should Startups Care About Profitability?

Both Sides of the Table

Or you know the other one — the one where Snapchat lost $2 billion in just one quarter. To grow faster businesses need resources in today to fund growth that may not come for 6 months to a year. They don’t want high burn rates but they will never fund slow growth. million to fund operations in their first year of operations.

Startup 227
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What I Would Look for When Choosing a VC – Knowing What I Know Now?

Both Sides of the Table

I had an enjoyable conversation this morning with a young team straight out of college this morning and they were calling to ask advice on how to approach fund raising (angels vs. VCs, how to select a VC, etc.) So I thought I’d write about out with what I would look for in a VC knowing what I know now and why. FourSquare.

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What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

Brad was openly writing about this and it felt like he was giving the VC playbook away for free! We write about $40 million of first-checks into new deals / year and about $40 million of follow-on investments. I’ll spare you the math and point out that this means we funded 0.104% of the market. This is how VCs feel.

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The Case For & Against Cryptocurrencies (for those tired of all the noise)

Both Sides of the Table

In more than a decade of writing about the Internet and tech-enabled businesses I’ve learned that mobs don’t do nuance well. Our social graphs are locked in Facebook, Twitter and Snapchat. The reality is that cryptocurrencies can be both and can be liberating and corrupting at the same time. What I can tell you from my vantage point?

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