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Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? Convertible notes have both features in them but for some reason entrepreneurs don’t understand it. It’s like we need a finance 101 course for entrepreneurs. It’s like we need a finance 101 course for entrepreneurs. We raised a seed round.

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HBCUvc founder Hadiyah Mujhid on one way investors can advance racial equity

TechCrunch LA

In response to VCs’ sudden rush to invest in more Black founders , Black venture capitalists and entrepreneurs have penned a bunch of advice on the best way to tap into talent. We cannot make significant progress in advancing racial equity without long-term financial commitment,” Mujhid wrote. Among the strategies?

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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

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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When should you go for equity financing?

Berkonomics

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. In most cases, these applicants for equity funding must be rooted in technology to apply to this limited discussion. Often grouped into formal organizations, these investors are sophisticated, helpful, and connected.

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Changes in Software & Venture Capital – Part 2 of 3

Both Sides of the Table

Yesterday I wrote Part 1 of the series on the changes to the software industry over the past decade that has led to changes in the venture capital industry itself. These trends have put pressure on traditional VCs. .&# Surprisinly, this strategy works well with many entrepreneurs. Or at least venture-style returns.

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VC investors: Don’t be greedy even if you can.

Berkonomics

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.

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5 Equity Crowdfunding Reflections Before You Sign Up

Startup Professionals Musings

With the advent and growth of crowdfunding over the past few years, many entrepreneurs have predicted the demise of those demanding angel investment groups and venture capital organizations. These groups are now largely run by volunteers at no cost to entrepreneurs. Lack of checks and balances on startup valuations.

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