article thumbnail

How to Talk About Valuation When a VC Asks

Both Sides of the Table

One of the hardest things about the fund-raising process for entrepreneurs is that you’re trying to raise money from people who have “asymmetric information.” VC firms see thousands of deals and have a refined sense of how the market is valuing deals because they get price signals across all of these deals. So why does a VC ask you?

article thumbnail

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. Conversely, I have praised and seen others praise VCs who volunteer to eliminate participation clauses even before knowing the ultimate sales price in a deal.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How to Better Manage Relationships with Your VC

Both Sides of the Table

I spent countless hours with VC firms, startups & LPs (the people who invest in VC firms). On my first real day back the first thought I have is that most entrepreneurs don’t manage their VC relationships as well as they could. It’s best to think of your VC partnership as a customer.

article thumbnail

How Many Investors Should You Talk to in a VC Fund Raise? And How Do You Prioritize?

Both Sides of the Table

The typical VC process is as follows: They say there are three rules in property: Location, location, location. The surest sign a fund-raising process has stalled is when you aren’t getting follow-up meetings or hearing from the VC or hearing from friends that they got a phone call or email asking about you. Same with VC.

article thumbnail

What Would it Look Like if Elon Musk Pitched a VC Today?

Both Sides of the Table

It is always a stellar event. Dorrian is an entrepreneur. His imagination of what is wrong with VC has captured perfectly in satirical format what ails our industry. It is Nikolas Tesla pitching a VC firm. At D Elon said he worried that our most talented entrepreneurs these days were too small minded in their objectives.

article thumbnail

Do VC Platforms Make Sense?

Both Sides of the Table

In the VC insider baseball world a discussion has gone on about “VC platforms” over the past 5 or so years. While firms define platforms differently, let’s just say they are the services that a VC offers outside of investment capital and partner time on boards or providing intros.

article thumbnail

Los Angeles VC and Angel Event

SoCal Tech Calendar

Thursday, June 16, 2011 -- Los Angeles VC and Angel Event. At our next Los Angeles event, the panel of investors will focus on Early-Stage Venture Investing - how to meet investors, pitch them, and what it really takes to get them to write you a check - Especially in this economy! FundingPost. See [link] (more)