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The Changing Venture Landscape

Both Sides of the Table

I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. On the one hand, you’re over paying for every investment and valuations aren’t rational. That used to be called A-round investing. of the fund.

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Why you should never have a data room — the most counter-intuitive fund-raising advice you’ll ever…

Both Sides of the Table

Or if you’re a VC raising from LPs you have to list all of your deals, your investment value, your carrying value, your multiples, your IRRs, TVPIs, DPIs, etc along with net cashflows plus your previous LPAs. These collective sets of documents form the basis of what somebody looking at investing would call “financial due diligence.”

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9 Principles Especially Critical For A Micro-Business

Startup Professionals Musings

Just because you want to start a business doesn’t mean you are entitled to outside equity, loans, or crowdfunding. By spending only within your means, and re-investing the money you make, you will more likely enjoy success. Get in the habit of documenting all agreements and terms. Meticulously manage cash inflow and outflow.

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7 Plan Elements That Separate Businesses From Hobbies

Startup Professionals Musings

Since this document is outward facing, it is important to keep the terminology and tone consistent with that of your customer set, investors, and business partners. Project revenues, costs and investment needs. The details can be added later. Now let’s talk about the bases that need to be covered. Skip the acronyms and jargon.

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7 Shortcuts That Can Kill A Startup Business

Startup Professionals Musings

I’m not suggesting that formal legal documents are always required, but agreements without some paper or email trail are easily forgotten or misconstrued. Trade secrets need to be documented and dated, and business plans labeled as confidential. Give away more equity than required to drive the business.

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Startup Due Diligence Is Not a Mysterious Black Art

Startup Professionals Musings

After you have successfully attracted angels or venture capital with your business case, your million dollar product idea, and you have a signed term sheet, there is still one more hurdle to overcome before investors write the check. A dysfunctional team, or even one naysayer in a critical position can stall your investment.

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Understanding the Dreaded Investor Due Diligence

Startup Professionals Musings

After you have successfully attracted angels or venture capital with your business case, your million dollar product idea, and you have a signed term sheet, there is still one more hurdle to overcome before investors write the check. A dysfunctional team, or even one naysayer in a critical position can stall your investment.