Both Sides of the Table

MAY 28, 2018

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. It goes something like this … VC: “How much money are you raising?” Founder: “$8–10 million” VC: “What’s your current burn rate?” A VC is looking for reasonableness.

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Berkonomics

JANUARY 6, 2022

Email readers, continue here…] Take a situation where the VC investors finally see the chance of a return after ten years, with participating preferred and fifty percent of the ownership after several rounds. The post VC investors: Don’t be greedy even if you can. Here’s an example that will make your heart skip a beat.

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Both Sides of the Table

MAY 11, 2010

I travelled for a couple of days for work and decided to get some sleep on those days rather than staying up into the wee hours as I often do when I travel. But what has really killed me is email. I live in email hell. I live in email hell. I’m always so completely behind on email. Email is a chore.

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Both Sides of the Table

AUGUST 8, 2009

This is part of my ongoing series “Pitching a VC&# – the outline is here. You’ve pitched several angels and VC’s. Your friends and advisers tell you that this means you need revenue because in this economy VC’s will only fund businesses with revenue. Unfortunately your advisers are wrong.

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Both Sides of the Table

SEPTEMBER 28, 2011

I’ve taken to saying, “Email is our personal to-do list that anybody adds to – whether they know us or not.” about their marathon 4-hour sessions to get to zero inbox or somebody else claiming email bankruptcy ( definition if you don’t know it already ). I have taken to limiting my outbound email.

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Both Sides of the Table

MARCH 22, 2012

And in most cases I would heed Fred Wilson’s advice about the “double opt-in” email for intros – where you ask for permission before green-lighting an unsolicited introductions. At a minimum you’re obligating them to ignore the email and feel like an arse for not responding to your introduction.

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Both Sides of the Table

APRIL 27, 2014

I was having dinner with a friend last night and we were chatting about venture capital and a bit about what I’ve learned. I started in 2007 with a thesis that my primary investment decision would be about the team (70%) and only afterward about the market opportunity (30%). Don’t even get me started on Demo Days.

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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. Time and fixed overhead: [Email readers, continue here…] That relationship between fixed overhead and production time is as critical as any other factor in the success of a young company.

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Both Sides of the Table

NOVEMBER 8, 2011

Launchpad LA today announces it will accept applications for its third class of Los Angeles-based tech startups. 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.

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Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). Bootstrapping: This term describes your ability to start a business with little investment and grow it using internally generated funds.

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InfoChachkie

OCTOBER 15, 2012

One the most frequent questions asked of me by entrepreneurs is, "How can I become a Venture Capitalist?" The inquiry is common because being a VC is (to an entrepreneur, at least) a sexy job. I define a "VC" as, "a professional investor who deploys third-party funds into relatively early-stage companies." Microscopic Industry.

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Both Sides of the Table

APRIL 21, 2010

In addition to the P2P deals covered below, on the show we also talked about some of my favorite financing startups ( Wonga in the UK run by Errol Damelin , who is a superstar) and Affordit.com run by serial (and I mean serial!) They have done 3 startups in the customer support space and one that wasn’t. LendingClub.

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Berkonomics

JANUARY 28, 2021

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up pre-money valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road. The post Don’t get hung up on early stage valuation.

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Both Sides of the Table

APRIL 14, 2010

Clean up your own shite. I know that the tone of the title and post will seem a bit aggressive for a post from a venture capitalist on fund raising. If you want to raise venture capital more easily the advice could be quite practical and counter-intuitive. Not so VC. It is 2010. This doesn’t suit anybody.

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Both Sides of the Table

MARCH 29, 2014

I often describe “chutzpah” as being able to skate right up to the line of acceptability without crossing over it. Years ago I started using the term “politely persistent” to remind people that you still need to be likable even if you have gumption. It’s your job to persist. Nothing beats a warm intro.

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Startup Professionals Musings

APRIL 24, 2013

Obviously, a key factor is always the state of the economy and the mood of the venture capital community. The good news is that both of these are looking up these days. California (Silicon Valley), New York (NYC), and Massachusetts (Boston) are the places to be in the US for venture capital attention.

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Both Sides of the Table

OCTOBER 29, 2010

I’m often asked by people, “how do I get into VC?&# Well, I know 3-4 VC jobs that are publicly available. At the highest level we’re looking for somebody really intelligent, digitally native, financially numerate and interested in startups. and I normally respond by saying, “there is no easy path.

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Both Sides of the Table

SEPTEMBER 12, 2010

I recently got an email from a friend who had been approached by a well known VC. He sent me an email asking whether the approach was real and whether he should take it seriously. Here is the email he received (reprinted without names with his permission). Why do VCs send generic outbound emails like this?

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Venture Capital Entrepreneur Email Equity 294

Both Sides of the Table

OCTOBER 1, 2009

In my previous post, The VC Ice Age is Thawing (for now) I wrote about the reasons why the VC market came to a screeching halt in September 2008 and remained largely shut until at least April 2009. There are now signs the VC market has gathered pace meaning it’s a great time to be fund raising.

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TechCrunch LA

JANUARY 26, 2020

The Los Angeles startup community is joining the rest of the world in mourning the death of NBA superstar, entrepreneur and investor Kobe Bryant who was killed in a helicopter crash in Calabasas, Calif., shortly before 10 a.m. Last year, the investment firm expanded with a $1.7

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Venture Capital Los Angeles Legalzoom Calabasas 359

Both Sides of the Table

FEBRUARY 25, 2019

This is part of a series on a Board of Directors at a Startup. High Functioning Startup Boards High-functioning boards have a tight-knit relationship between all members based on mutual trust and admiration. They are able to divide responsibilities and work to gain consensus on tough decisions that every startup inevitably faces.

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Startup Venture Capital Layoffs Resource 269

Both Sides of the Table

APRIL 28, 2010

This was the first episode where Jason wasn’t on the show, which gave me the chance to have another VC on the show to discuss deals. Rustic Canyon is an LA-based, but geography-agnostic VC that is currently investing from a $200 million fund. VC Financings: 1. I keep meaning to get him drunk to spill the stories.

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InfoChachkie

OCTOBER 8, 2012

As shown below, the most impactful form of traction is when your venture repeatedly convinces rational, third-party customers to happily part with their hard-earned cash, at a market price, in exchange for your solution. However, not all ventures are mature enough to generate paying customers. Photo Credit: ralphbijker via Flickr.

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Both Sides of the Table

OCTOBER 11, 2009

This is part of my ongoing series Startup Advice. Many startup companies hire advisory boards. If you plan to set one up – no problem. Advisory Board Problems : There are several problems that I have encountered myself and in my many discussions with CEO’s who have set up advisory boards. Too much effort.

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Startup Venture Capital Equity Technical Review 306

Both Sides of the Table

DECEMBER 14, 2010

They had received a term sheet from a VC and were wondering whether to work with this firm. I often tell people that raising venture capital is more difficult than getting married. Not so in venture capital. You’re tied at the hip to your VC. But what was the VC like when the chips were down?

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Venture Capital Entrepreneur Capital Help 298

TechCrunch LA

MARCH 19, 2020

A new initiative from a Los Angeles investor is taking stock of venture firms and their ability to commit capital in an effort to match firms that are still open for business and cutting checks to startups that are fundraising in the age of COVID-19. There’s also a list for startups that are looking for cash.

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Both Sides of the Table

JUNE 28, 2010

One of things I’ve loved the most about doing now 11 weeks of This Week in VC is a chance to have an hour-long recorded conversation with investors. And in my interviews with many VCs I feel that people can watch these and get to know the VC’s as human beings a bit better. So how did Mike get into VC?

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Venture Capital Blogging Startup Fandango 230

InfoChachkie

MAY 22, 2012

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. One way to accelerate your research is to speak with other startup CEOs who recently closed fundraising rounds. Even the most jaded VC cannot resist authentic flattery.

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Venture Capital Capital Research Customer 236

socalTECH

JULY 24, 2012

For one Los Angeles startup, help kids and teenagers create their own businesses and companies. Kidworth said today that it is aiming at helping create over one million, young entrepeneurs, by providing a way for teens and kids to start simple businesses.

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Startup Social Media Venture Capital Resource 145

Both Sides of the Table

SEPTEMBER 20, 2009

This is part of my ongoing series, “ Pitching a VC.&# Getting a meeting with a prominent angel or VC is difficult enough. Some advice on how to do that was covered in this link – Getting Access to a VC. Despite best intentions they probably won’t follow up on their actions. So how to proceed?

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Venture Capital Startup Email News 277

Both Sides of the Table

NOVEMBER 9, 2014

We all know that funding markets have changed for startups. Generally speaking in venture capital financings the legal documents will specify that only “major investors” (a threshold set in the agreement – which can be $500,000 investor or more). Has written a book on venture capital. You betcha.

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Both Sides of the Table

JANUARY 31, 2011

If you’ve taken the roller coaster ride that is a startup – you know what I’m talking about. I’m enjoying being a VC. I thought I’d talk a bit about the differences I’ve experienced between being an entrepreneur & a VC – you know, from “both sides of the table.&#. Our user numbers are up.

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Both Sides of the Table

APRIL 28, 2012

When you work inside a startup with lots of clever and motivated staff you’re never short of good ideas that you can implement. Each one incrementally sounds like a good idea, yet collectively they end up punishing undisciplined teams. As a VC I regularly meet with companies and listen to their plans. Let me explain.

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Both Sides of the Table

MAY 19, 2018

Let me start out with my premise: “Data rooms are where fund-raising processes go to die.” I have to back up and give you more context. Getting follow-on meetings is very hard because if the VC wasn’t totally persuaded in the first pitch meeting they aren’t likely to want to commit more time.

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TechCrunch LA

APRIL 7, 2020

In a sign of just how broken the process is for startups looking to receive stimulus dollars, Silicon Valley Bank, the bank that claims “more innovative startups bank with us than any other bank,” only just began processing claims today. Really bad for startups.” — Mark Suster (@msuster) April 7, 2020.

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Both Sides of the Table

OCTOBER 4, 2009

This is part of my ongoing series Startup Advice. Many entrepreneurs who start technology companies are product people, technologists or savvy business people who worked previously for a larger company. Most start-up entrepreneurs have little or no sales experience. I know I didn’t. Why Buy Now?

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Sales Startup Platform Tips 319

Berkonomics

JULY 10, 2014

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up premoney valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road. Email readers, continue here.] Starting up Raising money'

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