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Why You Don’t Want to Give Financial Information to All of Your Investors

Both Sides of the Table

We all know that funding markets have changed for startups. The trends are well understood: more angels, more seed funds, more crowdsourcing and so forth. Does he blog about venture capital and try to advise entrepreneurs? What is less understood are the consequences of these changes. There is a reason for this.

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Getting Back Your Series A Mojo

Both Sides of the Table

Last year I wrote a blog post on entrepreneurs with a chip on their shoulders. A chip on one’s shoulder as in, “F**k the system, it’s broken and I want to fix it” is exactly the energy I look for in entrepreneurs. You raised your seed funds. You got your tech press and your parents are proud.

Startup 371
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Understanding the Herd Mentality of VCs and How not to Let it Psyche You Out

Both Sides of the Table

Many entrepreneurs let the early rejections get to them and it’s normal because when you hear “no” you think “what’s wrong with me!?” While I tell founders not to let the lemons get to them I also have to remind people that “It only takes one yes to have a successful fund-raising round!” When you’re funded you’re often over-funded.

Press 232
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To Be Successful You’ll Need to Shake Hands and Kiss Babies.

Both Sides of the Table

I had a very enjoyable day in Cincinnati meeting many local entrepreneurs, angels and accelerators. I was here to see one of our LPs (limited partners are the people who invest money in VC funds) called Fort Washington. You need to press the flesh. I went even further when I was an entrepreneur. All of that matters.

Press 364
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The Authoritative Guide to Prorata Rights

Both Sides of the Table

These tensions seep out in some angels or seed funds publicly or semi-privately deriding later-stage VCs for their “bad” behavior. But with the massive growth of seed funds being raised and the huge value increase of prorata rights many more LPs have stepped in to take their VC (industry term is GP) position.

Guide 336
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Here’s Why a Booming Tech Market May Fool You into Thinking You’re Successful

Both Sides of the Table

An impressive number of new VCs have been created – most of them with new seed funds. It’s when the noise stops and you can actually get customer attention, press articles and VC meetings. Venture capitalists have raised increasing amounts of money from their investors (LPs) every year.

Marketing 354
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What Did I Learn From the First VC Check I Ever Wrote?

Both Sides of the Table

$15 million first checks but we also have three growth funds. The advantage is that in many of our best deals we now have $50+ million invested so we can really support entrepreneurs as their businesses scale. Accel led the B, Morgan Stanley the C and now HIG the D. VCs have different views and strategies on this.