Berkonomics

OCTOBER 18, 2018

For investors, a subsequent down round at a lower valuation than the last, or an exit opportunity at a loss are all opportunities for the affected stakeholder to show a side that can sometimes shock an entrepreneur or CEO. The chasm between management and employees. Investor loyalty is most tenuous of all.

Layoffs 240

Layoffs Class News Email 240

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

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. And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Venture Capital 266

Venture Capital Class Invest Equity 266

Berkonomics

FEBRUARY 14, 2019

Do they bet on the entrepreneur (jockey) or the business idea and plan (the horse)? 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. Concentrate on a world class team.

Venture Capital 120

Venture Capital Entrepreneur Ideas Summary 120

Berkonomics

FEBRUARY 14, 2019

Do they bet on the entrepreneur (jockey) or the business idea and plan (the horse)? 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. Concentrate on a world class team.

Venture Capital 120

Venture Capital Entrepreneur Ideas Summary 120

Berkonomics

JULY 5, 2018

Most businesses fall into the class of those that can be sold someday to a willing buyer. Accepting venture or angel money is to create a contract between the investors and the entrepreneur that the business will someday be sold or even go public to create an exit for the investors. And I’d go further.

Class 226

Class Email Competition Entrepreneur 226

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.] Anyone can build a good – or great – plan.

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. The average board for a company taking outside investment money is five. More importantly, no entrepreneur or CEO can do it all alone, especially in a rapid growth scenario. So, why go through the effort?

Resource 156

Resource Acquisition Class Help 156

Berkonomics

APRIL 4, 2019

On the other side, entrepreneurs and CEO’s usually have a natural fear of giving too much information to us investors after the initial investment is received. Email readers, continue here…] Prepare for your annual meetings well. Requirements created by investment documents. But don’t worry.

Class 120

Class Course Report Competition 120

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. Green Dot Corporation was formed by an entrepreneur in the year 2000 to create a product to permit those without credit cards to purchase items on the Internet.

Class 176

Class Resource Email Examples 176

Berkonomics

JUNE 12, 2014

We should think of the creation and growth of a high valued company as the sum of three parts, with three distinct classes of participants helping to make real value out of a raw start-up. First, there is the entrepreneur , the visionary, and force behind the venture from start to finish. Email readers, continue here.]

Startup 214

Startup Equity Invest Class 214

Berkonomics

APRIL 13, 2017

Email readers, continue here…] Can you dominate that market? Do you have a world-class management team? Building a great business to create wealth for the entrepreneur at exit, means thinking of the exit strategies from the beginning. Can you translate an idea into a compelling product?

Patents 291

Patents Pricing Ideas Marketing 291

Both Sides of the Table

JANUARY 14, 2014

If you follow the tech media you would be subject to a lot of narrative biases that are completely off base – and this includes the value of email and phone calls. It’s why the first company I ever invested in as a VC – Invoca – just announced a $20 million funding by Accel Partners. billion email accounts.

Email 339

Email SaaS Venture Capital Google 339

Berkonomics

JUNE 17, 2011

Most businesses fall into the class of those that can be sold someday to a willing buyer. Accepting venture or angel money is to create a contract between the investors and the entrepreneur that the business will someday be sold or even go public to create an exit for the investors. Email readers continue here.]

Equity 209

Equity Class Email Competition 209

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

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. And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

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

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

Berkonomics

APRIL 3, 2014

There are three classes of equity investors for early stage businesses that we have not yet considered. First, angel investment groups come in all sizes from a few organized angels to large groups of three hundred or more. Angel groups invest from $250,000 to $1,000,000 or more in qualified investments.

Equity 232

Equity Startup Organization Invest 232

Berkonomics

NOVEMBER 13, 2014

If you take money from knowledgeable investors, you will be required to create a board as a part of the investment process. The average board for a company taking outside investment money is five. More importantly, no entrepreneur or CEO can do it all alone, especially in a rapid growth scenario.

Resource 222

Resource Acquisition Class Help 222

Both Sides of the Table

OCTOBER 18, 2015

Technology riches yield bumper crops in venture capital with new firms and new largesses – the rewards of LPs rediscovering our asset class. Or the influx of massive new amounts of entrepreneurs and wantrepreneurs seeking fortune and fame? This must be a boon for entrepreneurs of fast-growing tech firms – right?

Venture Capital 150

Venture Capital Pricing Platform Marketing 150